Two more lenders cut mortgage rates

Two more high street lenders today cut their mortgage rates following the Bank of England's reduction in interest rates earlier this month.

Cheltenham & Gloucester, part of the Lloyds TSB group, said it was cutting its standard variable rate by 0.2% to 5.75%, while Alliance & Leicester reduced its by 0.16% to 5.79%.

The monetary policy committee's decision to cut interest rates by 0.25% to 3.75% on February 6 appeared to catch most lenders by surprise.

Only the One account, formerly the Virgin One account, and Sainsbury's Bank announced on the day that they would be passing the full 0.25% to customers.

The HBOS group, which includes Halifax, Bank of Scotland, Intelligent Finance and Birmingham Midshires, reduced rates by 0.1% the next day.

Northern Rock has since cut its standard variable rate by 0.16%, while Nationwide has reduced its base mortgage rate by 0.1% to 4.64%.

Abbey National has cut its standard variable rate by 0.15% to 5.79%, and Yorkshire bank passed on 0.16% of the reduction to its customers, reducing its standard variable rate to 5.79%.

But other lenders said they were still reviewing their rates and had yet to make a decision.

Last week Intelligent Finance announced it was cutting its savings rates by 0.1%, but building society Leeds & Holbeck said it would be keeping rates for its 600,000 savers unchanged until at least April 1.