The UK’s biggest building society has announced on Thursday it will pass on the full one percentage point cut for existing tracker customers.
RBS/Natwest also said on Friday that they would be cutting their mortgages by 0.75 of a percentage point.
The government is a majority share holder, owning 58% of the bank.
However the biggest lender in the UK, HBOS will only be passing on 0.25 of a percentage point.
Disappointing for its customers, a spokesperson for HBOS has said that the company is complying with the government in that is running the business along commercial lines.
Of course, if you do hold a tracker mortgage with them, which includes Bank of Scotland, you will benefit from the full one percentage cut in the Bank of England base rate.
If not standard variable rate (SVR) mortgage holders will see their rate drop to 4.75% on 1 January.
HBOS has benefited from around £12bn of taxpayers’ money as part of a government bailout.
Mortgage providers have to remain profitable and are understandably nervous about lending however it is unfair for customers to pay more than with other customers.
Now is a fantastic time to switch mortgage provider even if your mortgage provider has passed on the full rate cut to you.
It is difficult at the moment to obtain a mortgage however there is no harm in using a mortgage broker to search the market for you.
Find a mortgage broker who will search the whole market to see how much you can save on your mortgage.
Whether you want a Mortgage Aberdeen or a mortgage for a home in London, you could potentially save hundreds of pounds especially if you are on the higher rate standard variable rate mortgages.
Most of the other major mortgage providers have announced they will pass on the full rate cut to their customers however it is advisable to check to make sure what your provider is offering you. This includes Lloyds TSB/Cheltenham and Gloucester who announced they would pass on the full cut to SVR customers. The company has done this as it pledged in 2002 that its variable rates would never be more that two percentage points above the base rate.
As I suggested, search the market to see who will offer you the best deal.
