Northern Rock trims 1% from trackers

Northern Rock is applying the full 1% rate cut to existing tracker mortgages, the lender has announced today.

The government-backed lender is also cutting its SVR by 0.50% to 5.34% per annum, with effect from January 1 next year.

The same rate cut has been applied to the bank’s loyalty discount. The lender is offering borrowers who qualify for the loyalty discount a rate of 5.09% per annum, again with effect from January 1.

Savings rates will be reduced by up to 1.50%.