Full rate cut not passed on by 34 lenders, research shows

Last month's 0.5 per cent base rate cut has not been passed on fully to the standard variable rate (SVR) customers of 34 lenders, it has been reported.

Analysis by moneysupermarket.com has revealed that 34 financial institutions have not passed on the full benefit of October's surprise rate cut, with reductions of just 0.3 per cent and 0.1 per cent in some cases.

Furthermore, 30 of the UK's mortgage lenders have yet to inform their customers regarding their intentions to pass on the base rate cut.

Louise Cuming, head of mortgages at the site, said: "Our data clearly shows that some lenders feel that by keeping their heads down and saying nothing, their SVR customers will not notice they are shelling out more than they need to on their monthly repayments."

Ms Cuming added that this kind of attitude "does nothing" to rebuild consumer confidence.

Pressure is building on the Bank of England's Monetary Policy Committee to cut rates by a further one per cent on November 6th.