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1 May 08 - Borrowers Not Benefiting From Cut
Figures have revealed that four out of 10 mortgage lenders
have not passed on last month's interest rate cut to their
borrowers.
About 40 of the UK's 104 mortgage brands have not yet announced
if they will cut their standard variable rate (SVR) in line
with the fall in the official cost of borrowing.
The majority of lenders who have not yet made an announcement
are small banks and building societies.
But a number of bigger players have also failed to pass
on the reduction, including internet bank Egg, while Intelligent
Finance has reduced its main SVR but not its offset one.
Lenders typically reduce their SVR for existing borrowers
by the first day of the month after a base-rate reduction
at the latest, and the fact that a number of groups have
failed to announce a change suggests they are unlikely to
do so.
A handful of lenders who have cut their rates, meanwhile,
have failed to pass on the full 0.25% reduction, including
the recently nationalised bank Northern Rock - which reduced
its SVR by just 0.1%.
News items supplied by SelectNews, produced by PA Business,
part of the group that owns The Press Association, the UK's
national news agency. Copyright (c) PA Business 2007.
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