Some lenders failing to pass on recent rate cut to customers

Published:

MORE than one in four mortgage lenders have failed to pass on last month’s interest rate cut to borrowers.

About 27 of the UK’s 102 lenders have not reduced their standard variable rate (SVR) in line with April’s quarter-point reduction, a month after the Bank of England’s monetary policy committee cut base rates, according to financial information group Moneyfacts.co.uk.

The majority of those which have failed to pass on the reduction are small banks and building societies, with internet bank Egg also keeping its SVR on hold.

A further 18 lenders have passed on some of the cut, including recently nationalised Northern Rock, which reduced its SVR by just 0.1%. The figures came as the MPC opted to keep the official cost of borrowing on hold this month at 5%.