Published Date:
14 November 2008
By Staff reporter
LOCAL lender the Progressive Building Society announced yesterday that it is to cut its standard variable mortgage rate by 1.24 per cent from December 1.
The move follows the decision by the bank of England’s Monetary Policy Committee last week to reduce the base rate by an historic 1.5 per cent from 4.5 to three per cent and brings the Progressive SVR to 5.5 per cent.
“We need to sustain the profitability of our mortgage business in order to ensure that the society’s capital position remains strong,” said a spokesman for the lender.
“This is necessary to offset the heavy charges being passed on by Government relating to the rescue of Bradford & Bingely and the UK savers who had accounts with Icelandic banks. We also wish to maintain our healthy savings inflows as these funds help to fund the mortgage book and our savings rates need to be competitive.”
On Wednesday First Trust announced it was reducing its SVR by 1.21 per cent.
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Last Updated:
13 November 2008 6:22 PM
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Source:
News Letter
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Location:
Belfast
