RBS and Natwest mortgage rates cut

Date:Monday 9th February 2009
Author: Rachel Fletcher

Both Natwest and the Royal Bank of Scotland have confirmed that they have passed on the recent cut to the base rate of interest to their standard variable rate (SVR) customers.

Just days after the Bank of England announced that it is to cut interest rates to their lowest level in its history, the banking group has moved to reduce its SVR to 0.19 per cent.

It is estimated that as many as 1.1 million borrowers with Natwest mortgages and RBS mortgages, as well as consumers with overdrafts, will benefit from this rate cut, with RBS retail Banking chief executive Paul Geddes expressing his confidence that the initiative represents the ideal compromise between helping out both savers and borrowers.

"Both NatWest and RBS SVRs continue to remain competitive in the market at 4.00 per cent," he explained.

"Our SVR has seen combined cuts of 3.19 per cent over the last five months and we continue to offer a suite of highly competitive fixed rate mortgages to the market."

News of the reduction in rates on Natwest and RBS mortgages comes as Barclays has announced that it is to introduce similar cuts, with borrowers on Woolwich tracker mortgages to benefit from rate reductions of between 0.5 and one per cent.