Mark Harris, chief executive of mortgage broker SPF Private Clients, explained that most mortgages track a lender's standard variable rate, or the base rate, so most are not directly affected by Libor.

BBC: Libor scandal: Who might have lost?

The Bank of England's base rate is still at a record low of 0.5% and many variable rate savings polices on offer from banks and building societies offer less than 1% to their savers.

BBC: National Savings pulls popular policies from sale

Floating-rate mortgages last year reduced many borrowers' payment burden as the Bank of England dropped its base rate to 0.5% and lenders adjusted their standard variable rates downward in response.

ECONOMIST: Houses and prices

Meanwhile, Government-owned Northern Rock cut its Standard Variable Rate by 0.1% on Monday, its first move after the Bank of England cut base rates by 0.25% 11 days ago, and more than a week after the chancellor said banks should pass on interest rate cuts to homeowners.

BBC: Bank move has an immediate effect