Mortgage manager State Custodians cut its standard variable rate mortgage rates by 25 basis points yesterday - the second time this month it has done so.The rate on its Standard Variable Offset loan has been cut from 5.34 to 4.84 per cent since the start of the month. The rate on its Breathe Easy loan, which has no annual fee, is 4.99 per cent.State Custodians' chief executive, Heidi Armstrong, said: "We thought we could manage our costs at that level."State Custodians was launched six years ago with a low-cost online only distribution model. It is funded by Resimac, which owns 80 per cent of the business.Six months ago State Custodians started risk-rating its loans, offering different rates depending on the loan-to-valuation ratio.The Standard Variable Offset rate of 4.84 per cent is available for loans with LVRs of less than 80 per cent (it was 75 per cent until yesterday).The rate for loans with LVRs of between 80 and 90 per cent is 4.94 per cent, and the rate for loans with LVRs above 90 per cent is 5.14 per cent.Armstrong said she is seeing more lenders pricing for risk and believes it is becoming common practice in the industry."It means we are getting the business we want," she said.