Although many of the larger lenders have been passing on the _base_ rate cuts in full via their standard variable rates (SVR), the average SVR has not moved as much as might have been hoped for.

The average SVR on the 1st January 2009 was 5.14%, after the January 0.5% _base_ rate cut, the average SVR on the 1st February 2009 was 4.99% and after the February 0.5% _base_ rate cut, the average SVR now stands at 4.83%. So since 1st January the _base_ rate has fallen by 1% yet the average SVR has only fallen by 0.31%.

If we compare this to the fall in the average 2 year fixed and 2 year tracker rates, a fall of 0.58% & 0.49% respectively, it could be argued as a sign that lenders are not particularly keen for borrowers to sit on their SVR but would rather encourage them to opt for a new deal.

However it is interesting to note that none of the various types of rate have fallen as far as the _base_ rate, and each subsequent cut in the _base_ rate seems to be having less of an effect on average mortgage rates. Again leading one to question the value of further _base_ rate cuts.

This must be especially frustrating for those with large mortgages for whom a small rate cut will make a large difference to payments.

Source: moneyfacts website