There had been concern banks would take a while to pass yesterday's cut in interest rates on to customers – but it seems those fears were unfounded, after one major lender said it was cutting the rate of standard variable rate mortgages by 0.25 per cent.
NatWest – which is owned by RBS – said rates for SVR customers will be reduced from four per cent to 3.75 per cent.
Meanwhile, the bank is offering new customers a 1.67 per cent on a 60 per cent loan-to-value two-year fixed rate deal.
“We’re passing on the base rate cut in full to our valued mortgage customers on our standard variable rate," trilled chief executive Ross McEwan.
He was probably thankful for some good news: RBS was the biggest faller on the FTSE 100 today, after it reported a whopping £2bn loss for the first six months of the year.
The bank, which is still 73 per cent owned by the taxpayer, said its loss was down to two separate £1bn-odd payouts for litigation and conduct charges, including PPI compensation and shareholder action against its 2008 rights issue.
Yesterday the Bank of England unveiled a massive stimulus package, including cutting rates to 0.25 per cent, another £60bn of government bond purchases, a new £10bn corporate bond-buying package, and £100bn of cheap loans for banks.