Newbury chief executive Nigel Fleming said, "The Bank of England seems reluctant to reduce interest rates but we are confident that our reduction will act as a stimulus to the housing market in Newbury. Of course what we do for new customers is automatically passed on to our existing members."
Newbury Building Society's standard variable rate of 5.95% was already one of the lowest in the market (the average market rate is 6.59%*) and the new 5.65% rate means existing borrowers with a typical £150,000 25 year mortgage will be £27.00 per month better off.
For new borrowers interest rates start at 3.75% although Nigel Fleming urges people to compare the APR of 5.5% which is the government's standard for the true cost of borrowing.
