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Lenders pass on less than a third of rate cuts

UK lenders have reduced mortgage rates by 1.3 per cent on average since the Bank of England reduced the base rate by 4.5 per cent.

Figures from have revealed that the average mortgage rate for new borrowers has fallen 1.3 per cent over the past 12 months to 5.12 per cent, while the base rate has dropped from 5 per cent to 0.5 per cent.

The website found that the worst offenders included nationalised Northern Rock – its average mortgage rate dropped 0.27 per cent over the last year. Part-nationalised Cheltenham & Gloucester’s average rates have fallen by 0.71 per cent over the same period. mortgage channel manager Hannah Skenfield says: “Despite this low rate environment there is a significant disparity in the amount of this saving being passed on to mortgage borrowers by the main UK lenders.”

“This further illustrates the divorce between mortgage rates and the base rate and with the variance in average rates offered this year widening to 2.5 per cent compared with just 0.93 per cent in 2008.”


DB deficit at tipping point

Nearly a quarter of FTSE 100 firms will be unable to pay off their pension deficits over any reasonable time period, according to KPMG research.

Seeking quality in uncertain markets

By Ewan McAlpine, Senior Client Portfolio Manager In uncertain times, investors naturally seek safety. But in fixed income markets, what does that really mean? Ewan McAlpine outlines the approach RLAM’s Fixed Income Team will be adopting across its credit funds in response to potentially volatile markets this year. Click here for full article


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