Portman fails to pass on full cut

While leading mortgage lenders were quick to chop their main home loan rates by the full 0.25% following last week's base rate reduction, Portman building society has raised one or two eyebrows by opting to reduce its standard variable rate by only 0.14%.

Although its mortgage holders may not be pleased, Portman argues it has to balance the needs of savers and borrowers. Portman's decision has allowed it to keep the interest rate on its most popular savings product - its 3.75% instant access account - unchanged.

Also this week, Nationwide attempted to raise its profile on the home loans front by launching a new service allowing people to "take away a remortgage in a bag".

A spokesman says the bags contain everything people need to apply to switch their mortgage to the society: a guide to its home loan range, a simplified application form, direct debit instruction form and pre-paid reply envelope. Nationwide is determined to show it is still a force to be reckoned with despite claims from the Halifax that it appears to have virtually shut up shop for new mortgage business.