Rate cuts not passed on

Many mortgage lenders have declined to pass on the full 0.25 per cent December interest rate cut to their customers on the standard variable rate, it has been revealed.

Of the 103 lenders, 34 have either made no cut at all or a reduction of less than 0.25 per cent, consumer website moneysupermarket.com has revealed.

This includes cuts of only 0.15 per cent by online bank Egg and troubled lender Northern Rock.

In addition to this, many of those who have made the 0.25 per cent cut have very few of their customers on the standard variable rate, moneysupermarket's head of mortgages Louise Cuming stated.

News of the mortgage situation may interest those considering the alternative strategy of self build to obtain their own home.

The 0.25 per cent cut in the base rate may be repeated this week when the Bank of England monetary policy committee meets to discuss the issue.



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