You are here: Home - Mortgages - Buy To Let - News -

Mortgage lenders slow to pass rate cuts on

Written by: Owain Thomas
The Bank of England (BoE) has noted that mortgage lenders were not as quick to pass on the full extent of the record rate cuts it made at the start of the coronavirus crisis.

In March, the central bank made two emergency cuts to its Bank Base Rate, taking it from 0.75% to the all time low of 0.1%.

As a result, vast numbers of tracker rate mortgages were removed from the market and the Bank subsequently warned lenders that it would closely monitor how the rates were passed on to borrowers.

Now, three months after the base rate cut, the bank’s Monetary Policy Committee (MPC) suggested lenders were slow to adjust their offerings to reflect the reduction.

“The committee continued to monitor the pass-through of its recent 65 basis point reduction in Bank Rate,” the MPC said.

“Pass-through of the reductions in Bank Rate to new mortgage rates had been slower than expected to date. That might reflect lags in transmission or other more enduring factors.

“Effective rates on the stock of standard variable rate and tracker mortgages had fallen by 54 basis points and 57 basis points respectively between February and April,” it added.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
May retail sales bounce back as economy reverses lockdown collapse

Retail sales in the month to May increased 12% from the record falls in April, official statistics reveal.