<b>London (shakespearefinance) February 12, 2008:</b> The top-five banks in the UK have reduced their variable lending rates after the Bank of England decided to cut the interest rates to 5.25%. The move by the top five banks – HBOS, Barclays, Lloyds TSB, Royal Bank of Scotland/NatWest and HSBC - will give some relief to the borrowers who were already feeling the pinch of successive interest rate hikes in the past two years. Except for HSBC, all these banks will change their standard variable rates for existing customers with effect from March 1. At HSBC, the change will be effective from March 7.

Last time, the Bank of England reduced the interest rates by quarter of a percentage point in December. According to estimates from the Council of Mortgage Lenders, an average borrower will be able to save about 23.20 pounds a month on a £150,000 mortgage with 25-year repayment term. The Council said that the cut in interest rate was a welcome step, but warned the borrowers not to expect an automatic cut in variable rates as the cost of borrowing too will have its effect.

Borrowers with mortgages and secured loans that track the base rate of interest as set by the Bank of England from time to time will be able to get an instant benefit of the rate-cut.

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