- Mortgage best buys
- Mortgage calculators
- Interest rate change
- New year mortgage savings

The Bank of England has once again cut interest rates by half a percentage point - taking rates to a record low of just 1%. This is the fifth consecutive cut since rates were at 5% at the beginning of October.

Anyone on a tracker mortgage will see their monthly payments drop automatically, although some lenders impose floors below which your rate cannot fall. If your paying your lender’s Standard Variable Rate, or if your deal is linked to this rate, you will have to wait and see what your lender decides to do.

Lenders have complete discretion over their own Standard Variable Rates (SVRs) and are not obliged to cut them after a cut in the Bank of England Rate. Following the drastic rate cuts over the last few months, some lenders have been much better than others at passing on the cuts to their borrowers.

AOL Mortgage Service provided by London & Country

POWERED BY

For fee-free mortgage advice call 0800 953 0593

Todays best buys

Lender	Initial rate	Scheme type	Overall cost for comparison (APR)
	3.99%	Fixed until 31/12/10	6.8%	enquire
	4.39%	Fixed until 31/01/11	4.7%	enquire
	3.49%	1.49% above base for term	3.6%	enquire

More mortgage best buys

5 reasons to use L&C

• We search the whole of the market
• Award winning
• No fee broker
• For every mortgage that completes we will plant 50 trees
• UK largest fee free mortgage broker

Speak to an adviser

Preferred Time Now 9-12 12-1 1-2 2-5 5-6 6-8 Any Time

Name

Email

Phone No 1

Phone No 2

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Following this latest rate change, lenders such as Nationwide, Cheltenham & Gloucester, Halifax and Skipton were quick to announce that they were cutting their SVRs by 0.5%. Both Nationwide and Cheltenham & Gloucester now have SVRs of just 3%. Woolwich is also cutting its SVR by 0.5%, although it has only passed on 2.15% of the total 4% drop in Bank Base Rate since the beginning of october - its SVR now stands at 4.99%. Many other lenders are yet to make any announcement.

With such major rate cuts in recent months, the difference between the lowest and highest SVRs is now more than a whopping 3.5%. Based on a mortgage of £150,000, that could mean a massive difference of £437.50 a month in repayments.

With all the changes going on in the mortgage market, make sure you're getting the best possible deal. Check what your lender is charging you and see if you can get a better deal elsewhere - you could save hundreds of pounds.