Mortgages -
Rate cut 'reflected by big lenders' - 08/02/2008
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Mortgage lenders in the UK have said, in the main, that they will reflect the Bank of England's interest rate cut in their variable rates.
Market leaders Halifax, Nationwide, RBS and NatWest all said that they would be passing on the full 0.25 per cent reduction to customers.
The rate was reduced yesterday to 5.25 per cent - the second drop in three months.
Fears of a cooling housing market are thought to have been a factor in the decision, which was made by the bank's nine member Monetary Policy Committee.
However, this rate cut might not be universally reflected across the market, the Council of Mortgage Lenders (CML) has warned.
Director-general at the CML Michael Coogan said: "Lenders' rate-setting policies are more complex than simply the level of the base rate.
"They are determined by a range of factors including the cost of retail funding and the cost and availability of wholesale funding."
The reductions in variable rates from the various lenders are scheduled to take effect early next month.
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