Mortgage Lenders Slow to Pass On Rate Cut
Research shows 75% of mortgage lenders yet to reduce their rates
11th August 2005
Research by financial data publisher Moneyfacts has shown that 75% of the UK's 120 mortgage lenders have not yet reduced their mortgage rates, a full week after the Bank of England reduce interest rates by a quarter of a per cent.
Of the 30 who have, all but one have passed on the full amount of the cut, which would save someone with a mortgage of £80,000 around £12 a month.
Some major high street names have yet to decide how much of the cut to pass on, with some unlikely to pass on the full amount as they base their standard variable rates on undercutting their competitors rather than tracking the base rate.
Perhaps surprisingly, given widespread perception of banks and profits, they have been similarly slow to reduce their savings rates, with only a quarter doing so thus far.
Read More: Money Guardian : 75% of lenders fail to pass on interest rate cut
|
More Moneyfacts News : Sainsbury's Withdraws Credit Card Rewards |
|
More on Interest Rates : Mortgage Approvals Up Again (News, 28/09/2005), Weak Growth Prompts Rate Cut Prediction (News, 28/09/2005), Interest Rates Reduced (News, 04/08/2005), No Change In Interest Rates (News, 09/05/2005), Rates Stay at 4.75% (News, 07/04/2005), See all 11 Interest Rates stories >>> |
Home - Mortgages
