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Base rate snub would be a slap in the face for mortgage customers, says Which?

06 November 2008

As the Bank of England prepares to announce a cut to the base interest rate, Which? personal finance campaigns manager, Doug Taylor, says:

“If the banks fail to pass on the base rate cut, it will be another slap in the face for mortgage customers, many of whom are struggling to make ends meet. To add insult to injury, the banks will no doubt be falling over themselves in the rush to cut savings rates.

“All of the banks, particularly those who have benefited from taxpayers’ money, should be passing on any base rate cuts in full to their customers.”

Ends

Notes to Editor


Which? is calling for an independent review of UK banking, urgent measures to help struggling consumers and long-term reforms to build a strong, fair banking system with consumer interests at its heart. Which? wants consumers to add their voice to the campaign by emailing the chancellor at www.which.co.uk/emaildarling

  • The average SVR among the 10 biggest lenders is 6.7 per cent while the average outstanding mortgage is £103,705.
  • By passing on a base rate cut of 1.5 per cent, lenders could save an average customer £129.63 a month on a 20-year interest only mortgage and £89.54 a month on a 20-year repayment mortgage.
  • By passing on a base rate cut of 1.5 per cent, lenders could save a customer with a £200,000 mortgage £250.00 a month on a 20-year interest only mortgage and £172.68 a month on a 20-year repayment mortgage.