Mortgages Uncovered

According to a recent report by Moneyfacts the financial information provider, three quarters of UK mortgage lenders have still not passed on the 0.5% interest rate cut to their customers.

After the announcement from the Prime Minster and The Bank of England’s Governor only last week admitted that we were heading for a recession which meant that further cuts in interest rates were on the cards.

Darren Cook spokesman for Moneyfacts has said though that the next bout of rate cuts may well have no impact if not very little to the mortgage outgoings of most of the current household’s and may still result in an increase in repossessions.

Moneyfacts have published statistics that show that out of the 96 of mortgage lenders offering standard variable rate mortgages, there are no more than 50% offering homeowners the recent rate cuts.

The banks that have passed on the whole rate cut include; Halifax and the Northern Ireland-based, Northern Bank.

A spokesperson for the consumer organization Which?, claimed that banks were “having their cake and eating it” and were putting pressure on the Government to persuade all banks to lower rates.