Two lenders announced yesterday that they had cut their mortgage rates following the 0.5% interest rate cut by the Bank of England last week.

The Co-operative has announced that it will pass on the base rate reduction in full, in a bid to attract customers looking to mortgage or remortgage their property.

Nationwide has also said taht its Base Mortgage Rate will be cut 0.3%, with customers receiving this cut as well as the 0.5% rate reduction.