8
Jan
One-fifth of lenders have not passed on rate cut
Almost one in five UK mortgage providers have failed to pass on the
cut in interest rates to borrowers, new research has
revealed.
The Bank of England cut the base rate of interest by a quarter
percentage point last month bringing it down to 5.5 per cent, a
move welcomed by the property market and homebuyers struggling with
affordability alike.
However, this has not reduced payments for all homeowners, since
according to research from moneysupermarket.com, around 18 of the
103 mortgage providers, including Skipton and Principality, have
not cut their standard variable rates.
Meanwhile, 16, including Alliance & Leicester, Northern Rock
and Egg have cut rates by less than 0.25 per cent.
Lisa Taylor, of Moneyfacts.co.uk, slammed the lenders who it is
likely to be perceived by the general public are using the cut to
their own improve profit margins.
She said: "It is disappointing that some of the largest savings
cuts have been made by some of the largest providers. A cut to
savings rate of more than 0.25 percentage points is
unacceptable."
