Many mortgage providers ‘failing to pass on base rate cut’

The Bank of England’s half-point base rate cut has not had its full intended impact, as only four building societies have passed the cuts on to customers on their variable-rate mortgage products, The Times reports.

Conversely, nineteen banks have passed on the base rate cut to customers on their variable-rate mortgages, according to The Times.

However, a report by mform.co.uk has shown that many mortgage providers have in fact upped the interest rate margin on their tracker mortgages in the last year, meaning that in many cases new tracker mortgages would still cost about as much, despite the base rate cuts.

A spokesperson for Think Money said: “Many mortgage providers have found it difficult to lower their rates due to continued uncertainty in the mortgage market. It may well be that the base rate cut will have a delayed effect – once more lenders begin to reduce mortgage rates, the rest may follow suit in order to compete.

“With the mortgage market more difficult than usual, we advise anyone considering taking out a mortgage to seek advice from an expert mortgage adviser, which could greatly improve their chances of getting the best mortgage deal.”

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Think Money offer a range of mortgages to suit people in various financial situations. If you are looking for a mortgage, contact one of our expert mortgage advisers today.

Tags: bank of england, bank, banks, mortgage, mortgage rates, pass on cuts, pass on mortgage rate cuts

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