Bank Rate

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The Bank of England's 0.5% cut in Bank Rate to 1.5%, its lowest level yet, has prompted several other lenders to cut their mortgage rates.

Among them have been HBOS, RBS NatWest, the Nationwide building society, HSBC and Lloyds TSB, though not all have applied the full 0.5% reduction.

Northern Rock will be reducing its standard variable rate by 0.25% to 5.09% on 1st February. The full reduction will be received by existing tracker rate borrows.

While there longer-termed borrows who have had a mortgage for more than seven years will benefit from an even lower interest rate on their home loans.

Government owned Northern Rock Bank has become the latest lender to cut its mortgage rate in the wake of last week's cut in Bank rate.

A Northern Rock spokesman said, "Following the 0.50%cut in the Bank of England Base Rate on 8th January, Northern Rock had given careful consideration to all of its customers".