Which? is calling on mortgage providers to pass on the latest Bank of England base rate cut.
Which? chief executive, Peter Vicary-Smith, says: ‘The banks are skating on thin ice as it is. They have been bailed out by taxpayers’ money yet some stubbornly refuse to act in the public interest. If they fail to pass the latest cut onto their customers then the Government must take decisive action.’
The bank has cut its headline interest rate from 3% to 2%. The latest cut comes just a month after rates were slashed by 1.50%. The base rate is now at its lowest level since 1951. If the base rate is cut again next month, it will fall to a level lower than has been seen in the Bank of England’s entire 300-year history.
The cut will bring welcome further relief to struggling homeowners – provided that lenders pass on the cut quickly and in full.
If you’re coming to the end of an initial mortgage deal, watch out. It may not be worthwhile switching to a new one at this point as your lender’s standard variable rate (or whatever rate your mortgage reverts to after the initial deal) could be lower than any deal you could get. Check the terms of your mortgage.
To find out whether you could save money by switching or to find the best deal for you, visit the Which? mortgage calculator.
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