Homeowners with variable rate mortgages are in for a windfall today after four of the major high-street lenders agreed to pass on in full the current interest rate cuts.

According to estimates up to 4 million SVR mortgage holders are set to benefit from the 0.5% interest rate cut. Barclays, Lloyds TSB, Nationwide and Skipton have all agreed to pass on the full rate but other banks have been less forthcoming, suggesting that their SVR rates are “under review”.

There are exceptions also for those tracker customers who have a collar on their mortgage, which prevents it falling under a set rate of interest. The offer is also not open to new borrowers, with the deals no longer being available.

Lloyds TSB and Nationwide customers will see their SVR rate drop to 3% in February when the new changes come into effect. One third of banks are likely not to pass on the rate cuts, which is line with what occurred after the last base rate reduction.