The Bank of England has cut its interest rates by 0.25 per cent to 5 per cent from 5.25 per cent.
The move takes the Bank's base rate to its lowest level for over 20 years.
Some lenders have been quick to respond to the cut with Abbey National and Virgin Direct setting the pace, cutting their rates by 0.1 per cent and 0.25 per cent respectively.
Halifax, Alliance & Leicester and Nationwide have made commitments to review their rates.
Abbey National's change will take effect from June 14 for new borrowers and from July 1 for existing borrowers. Virgin's takes effect from midnight on June 11.