Lenders haven’t passed on the interest rate cuts

Although Bank of England interest rates have been slashed to 3 per cent, many mortgage lenders still haven’t passed the cut on to borrowers, some of whom are paying 7 per cent or more. The ‘list of shame’ by the Guardian, lists Kent Reliance Building Society as topping the standard variable rate with a rate of 7.59 per cent, although it says this figure will drop next month, as do other lenders with rate in excess of 7 per cent. A spokesperson from the Building Societies Association defended some of its members saying there are a whole range of issues that impact on how a mortgage is priced, not just the Bank of England base rate.