Britannia Building Society has announced that it will cut its standard variable rate (SVR) on mortgages from 6.35 per cent to 6.10 per cent from October 1st 2005.
Britannia, the nationís second largest mutual, will make the new rate available to both new and existing customers.
Tim Franklin, managing director of member business at Britannia stated: ìThe reduction will result in savings for our members. Britannia already has one of the lowest SVRís on the high street and this latest cut will ensure that our products continue to offer great, long term value.”
Britanniaís announcement comes at a time when a number of banks and building societies have come under fire from market analysts for cutting rates on savings, weeks before doing so on mortgages to reflect the Bank of England interest rate cut.
Mortgage approvals in July rose to an unexpected 97,000, which was an increase of 1,000 on the previous month, in anticipation of the August rate reduction.
The month of August has seen a housing sales boom, and the increase in sales, along with the mortgage approval rise, are seen as signs that the housing market recession of the past year has turned a corner.
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