Mortgage rates fell to their lowest level for more than 45 years today as lenders were quick to pass on the Bank of England interest rate cut to borrowers.
The sixth rate cut this year will knock a further £9 a month off a £60,000 mortgage, bringing the total cut since January to around £90 a month.
Following the announcement, a flurry of lenders, including Halifax, Nationwide and HSBC, said they would be reducing their mortgage rates by the full 0.25 per cent.
Nationwide reduced its base mortgage rate to 5.24 per cent, the lowest rate the society has offered since October 1955.
Britain's biggest mortgage lender, Halifax, now part of HBoS following its merger with Bank of Scotland, said its new variable rate of 5.5 per cent was its cheapest since July 1959.
Bob Pannell, head of research at the Council of Mortgage Lenders, welcomed the cut. "While the housing and mortgage markets have been performing strongly, the current uncertainty has nevertheless been casting a shadow.
"Today's reduction in mortgage rates will therefore be welcomed by borrowers who may be feeling less certain about their future financial outlook".