Northern Rock is reducing its variable mortgage rates following the recent cut in the Bank of England Base Rate (BBR). For Northern Rock borrowers whose loans qualify for a loyalty discount after seven years, the new Loyalty Rate will be 7.44% per annum with effect from 1 January 2008 thanks to a 0.25% discount off its Standard Variable Base Mortgage Rate (SVR). Northern Rock’s SVR will reduce by 0.15% to 7.69% pa with effect from 1 January 2008 for existing borrowers.