Mortgage lenders 'failing to pass on rate cut'
Published On 21 December 2007
A number of mortgage providers have not passed on the Bank of England's recent cut in interest rates to customers, according to a new report.The Bank slashed the base rate by 0.25 percentage points to 5.5 per cent, but research from Moneysupermarket has shown that most mortgage lenders have not changed their rates.
"Four out of every five mortgage lenders have given themselves an early festive treat by not passing on the reduction to their standard variable rates," said Louise Cuming from the price comparison site.
"In the current economic climate I would have liked to have seen providers showing a little more compassion towards borrowers who have spread themselves thin over the Christmas period."
According to the report, 37 per cent of lenders have announced they will be cutting rates but that this will only take effect in the new year.
"Time and time again we see this delay in passing on reductions," Ms Cuming added. "Perhaps providers' new year's resolutions could be to pass on rate changes automatically or backdate them."
