8 Jan

One-fifth of lenders have not passed on rate cut

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."

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