Millions of homeowners received a boost when the country's largest lenders announced they were passing on the Bank of England's 1.5% interest rate cut in full to mortgage customers.

Halifax, Nationwide, Royal Bank of Scotland and NatWest, and nationalised bank Northern Rock all said they would be reducing their standard variable rate by the full amount.

They join Lloyds TSB, which also lends under the Cheltenham & Gloucester brand, and Abbey, which both previously announced cuts of 1.5%.