Redwood Bank follows BoE’s lead
Redwood Bank will immediately pass on the full Bank of England base rate cut to lending customers.
As a result, all of the banks existing lending products will receive a 0.5% reduction.
According to the firm, it took the decision to reduce rates in line with the Bank of England in order to steady the economy amid the coronavirus outbreak.
The Bank of England is cutting the base rate from 0.75% to 0.25%, and has also outlined that it intends to free up billions of pounds of extra lending power to help banks support firms.
Gary Wilkinson, chief executive and co-founder at Redwood Bank, said: “Yesterday’s Bank of England base rate announcement is positive news for the UK economy, as it’s going to help tackle the economic implications of coronavirus.
“Almost all of our mortgage products are bespoke to meet the individual needs of clients and have variable rates linked to base rate.
“We have therefore decided to cut our mortgage rates by 0.5 per cent, which we believe our customers will hugely benefit from.”