Major lenders are reluctant to predict when they are likely to stop passing on the benefits of base rate cuts to borrowers.
Following the Bank of England's 0.25 per cent cut lenders such as Nationwide and Cheltenham & Gloucester immediately cut their standard variable rates by the same amount.
Cheltenham & Gloucester press officer Peter Mounty says: "I would not say that interest rates have to drop to a specific rate before we will stop cutting our mortgage rates. We will balance the interests of borrowers and investors as we see best."
Nationwide press officer Steve Blore says: "We are determined to keep ahead of the plcs and we will continue to cut mortgage rates as long as we are not compromising the interests of our investors."