Lenders vow to pass on rate cut
Halifax, the UK's largest mortgage lender, said it was passing on the full 1.5% interest rate cut to customers on its standard variable rate.
Meanwhile, Nationwide became the first building society to announce it was passing on Thursday's 1.5% interest rate cut to its variable rate mortgage customers. The group announced it was cutting its standard variable rate, which it calls the base mortgage rate, by the full amount to 4.69% from December 1. It joins only three other lenders - Lloyds TSB, Abbey and Scottish Widows - which have so far said they will pass on the cut to borrowers.
Earlier, Chancellor Alistair Darling told banking chiefs to pass on the interest rate cut to customers "as quickly as possible", according to sources.
The heads of all high street lenders were summoned to a breakfast meeting at the Treasury at which they were urged to drop mortgage rates.
It follows the shock move by the Bank of England on Thursday to slash the bank base rate by 1.5% to 3% - the lowest it has been in more than 50 years.
The meeting comes amid growing calls for banks to pass on the good news to mortgage holders with immediate effect.
The Conservative Party has urged the Government to force nationalised banks - Northern Rock and Bradford & Bingley - to lower their rates.
On GMTV, Tory leader David Cameron said: "The interest rate should be passed on. If they do not, further action may be necessary. The Government owns some of these banks now, so they can take steps."
A host of banks and building societies rushed to withdraw their tracker deals from the market following Thursday's decision.
Share
