Halifax cuts mortgage rate

The UK’s biggest mortgage lender acted immediately to cut its standard variable rate to 6.5% for thousands of borrowers today.

The move by the Halifax, following the Bank of England’s decision to reduce its base rate to 4.5%, will see more than £12 a month knocked off the cost of an average £80,000 mortgage – falling to £540.16 from £552.72.

People with a £150,000 mortgage will see their monthly repayments fall by nearly £25, while those who are heavily mortgaged with a £200,000 loan will be more than £30 a month better off.

Five increases in the Bank of England’s base rate since November 2003 have increased the monthly bill on a £100,000 mortgage by more than £70.

Meanwhile, many savings rates have already been lowered in anticipation of today’s Bank of England decision. They include ING Direct, which recently told its 750,000 savers that rates would fall to 4.75% this month.