Many banks and building societies are still undecided on whether to implement December’s cut in the Base Rate according to Moneyfacts.com

Following December’s Base Rate cut of 0.25%, 89 mortgage lenders reduced their borrowing rates while 18 failed to pass on the full cut. According to Moneyfacts.com, an additional 10 lenders including Skipton Building Society and Manchester Building Society, are yet to announce a change.

Out of 116 savings providers, 12 have not announced a drop in their rates since the December cut. Of these, only Cumberland Building Society has announced a rate commitment to their savers guaranteeing not to change their rates until April 2008. According to Moneyfacts.com, 22 providers including HSBC, Alliance & Leicester and Halifax have cut some rates on their accounts by more than the Base Rate’s quarter point reduction.

Julia Harris, analyst at Moneyfacts.co.uk, said: “Despite the festive period, we would have expected the dust to have settled by now, with most lenders and savings providers having made a decision. But some lenders and savings providers are still undecided, with mortgage borrowers continuing to be charged at a potentially higher rate, while some savers may be happily sitting on higher than expected return.”