NR cuts SVR and loyalty rates

Natalie Holt
13-Oct-2008
Northern Rock is passing on the base rate cut by reducing rates on both its SVR and its loyalty rate.
Last week there was speculation by brokers that the nationalised lender would continue to ignore government calls to pass on rate cuts to borrowers.

But following the 0.5% base rate cut last week NR’S SVR will drop by 0.15% to 7.34%.

This brings NR's base rate down by 0.25% since April when chancellor Alistair Darling first issued the call to lenders.

The change will apply to existing borrowers with effect from November 1.

The NR loyalty rate, which applies to qualifying borrowers after seven years, has dropped to 7.09% per annum. This will also be effective from November 1.

NR is also planning changes to its savings rates.