Mortgage lenders reluctant to pass on base rate cuts
New research has shown that mortgage lenders are unwilling to pass on the latest decrease in interest rates to their borrowers.
The bank of England base rate cuts are not benefiting borrowers as lenders are reluctant to pass down these cuts, states Moneyfacts.
Borrowers with Standard variable rate mortgages (SVR) are getting the least help from interest rate cuts and the average SVR mortgage has fallen by 0.31% although there has been a 1% decrease in base rates.
People with tracker and fixed mortgages have benefited more as they have decreased by 0.49% and 0.58% this year.
Michelle Slade of Moneyfacts.co.uk, comments that “Rates for new borrowers need to fall much further to motivate borrowers on a SVR to remortgage onto a new deal or even to trade up the property ladder.
“As time passes each base rate cut seems to have less of an impact for borrowers and continuing impact on savers. It begs the question; will the Monetary Policy Committee now say, enough is enough?”
Free Mortgage Enquiry