RBS cuts mortgage rates by 0.25%

NatWest, Royal Bank of Scotland and Ulster Bank NI said they would cut their standard variable mortgage rate by 0.25% in line with the Bank of England base rate reduction.

This cuts he rate for customers to 3.75% from 4%, RBS said.

The 73%-taxpayer-owned bank slumped to a £2bn half-year loss, and was under pressure on Friday to cut the rate to match the Bank of England's historic rate cut to 0.25%. BoE Governor Mark Carney told retail banks on Thursday they had no excuse not to pass on the cut from 0.5%.

RBS chief executive Ross McEwan had said earlier on Friday the bank was reviewing its position on the rate cut.

“We’re passing on the base rate cut in full to our valued mortgage customers on our standard variable rate. We have been the fastest growing large UK bank with net lending growth of over £20bn in the first half of the year - higher than any other bank. We’re open for business and ready to lend responsibly to homebuyers up and down the country,” he said.