This figure was calculated from the fact that Halifax’s average loan is £115,000, which means a one per cent cut equates to £1,150 a year for their reported 500,000 customers.
Mform.co.uk says Halifax was almost alone in imposing a three per cent collar. Mystery shopping showed Abbey, Alliance & Leicester, Cheltenham & Gloucester, HSBC and Royal Bank of Scotland do not impose collars on existing products.
Nationwide had a 2.75 per cent collar which it dropped last week but does impose a one per cent collar on some products.
The UK’s leading lender is passing on last week’s one per cent cut in full but the decision will mean deals for new borrowers from Halifax are likely to rise from the current best buy rate, mform.co.uk warns.
Mform.co.uk marketing and business development director Francis Ghiloni says: “The Halifax decision to cave in to pressure is great news – and considering taxpayers have been kind enough to bail them out – you might say it is the least they could do.
“Existing borrowers are benefiting, but the concern must be that the £575 million Halifax is stumping up will be recouped somewhere else. New borrowers will have to pay and that will restrain the much-needed revival in the mortgage market.”