Following the Bank of England’s decision earlier this week to drop the base interest rate by 0.5 per cent, the Royal Bank of Scotland (RBS) and Natwest have followed suit and lowered their interest rates by 0.5 per cent on their Offset Flexible mortgages.

The RBS will be implementing this change on the 1st November and Natwest on the 3rd November.

This will be good news for their borrowers, however, not all borrowers are seeing the same cuts on other products with other banks.

Barclays and Woolwich will be showing drops in their interest rates.

Head of mortgages at Woolwich, Andy Gray said “The base rate cut is a welcome move for millions set against the background of a slowing housing market.” He then went on to say “the move to reduce mortgage payments is good news and will instill confidence, helping customers with their finances”.

Some banks are yet to announce what they will be doing with the interest rates on their products.

Mortgage advisors will be watching with keen interest to see what happens and what news they can take to prospective borrowers.

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