Savers and borrowers still waiting to see if their rates will be cut
Julia Harris, analyst at Moneyfacts.co.uk investigates:
“Five weeks on from Decembers shock reduction in base rate, many experts are predicting yet another cut tomorrow. Despite the festive period we would have expected the dust to have settled by now, with most lenders and savings providers having made a decision. But some lenders and savings providers are still undecided, with mortgage borrowers continuing to be charged at a potentially higher rate, while some savers may be happily sitting on higher than expected return.
Mortgages
“There are currently ten mortgage lenders who have failed to make any announcement as to whether their SVR will be changing. Included are several smaller building societies, but more surprisingly it’s unusual to see some larger providers such as Skipton still undecided.
Lenders yet to announce: |
|
Bath BS |
Manchester BS |
Ecology BS |
Marsden BS |
Harpenden BS |
Monmouthshire BS |
Intelligent Finance |
Principality BS |
Ipswich BS |
Skipton BS |
Moneyfacts.co.uk |
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“Of the 89 lenders that have reduced their rates 18 have opted for a cut of less than 0.25%, meaning any borrower on a SVR deal or a discounted rate linked to the lenders SVR will not be seeing the benefit of the full 0.25% cut they may have been expecting.
Lenders who have passed on less than 0.25% |
|||
Alliance & Leicester |
-0.20% |
Catholic BS |
-0.17% |
Cheshire BS |
-0.20% |
Allied Irish Bank (GB) |
-0.15% |
Earl Shilton BS |
-0.20% |
Egg |
-0.15% |
Mansfield BS |
-0.20% |
First Trust Bank (NI) |
-0.15% |
Northern Bank (NI) |
-0.20% |
Loughborough BS |
-0.15% |
Nottingham BS |
-0.20% |
Northern Rock |
-0.15% |
Scottish Widows Bank |
-0.20% |
Scottish BS |
-0.15% |
Ulster Bank (NI) |
-0.20% |
Beverley BS |
-0.14% |
Saffron BS |
-0.19% |
Dunfermline BS |
-0.10% |
Moneyfacts.co.uk |
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“Whatever the amount the lender has passed on following the base rate cut, what’s more important for borrowers, especially those on a reverts to SVR is the actual rate they are being charged. Some lenders decisions may have been to re-align their rates with competitors.
Lowest SVR
Lender |
SVR rate |
Stafford Railway BS |
6.34% |
First Direct |
6.50% |
Harpenden BS |
6.69% |
Cambridge BS |
6.70% |
Homesdale BS |
6.74% |
HSBC |
6.75% |
Highest SVR
Lender |
SVR |
The Mortgage Business |
7.94% |
Birmingham Midshires Solutions |
7.94% |
Bank of Scotland Mortgages |
7.85% |
Marsden BS |
7.79% |
Manchester BS |
7.79% |
UCB Home Loans |
7.79% |
Savings
Lenders yet to announce: |
Anglo Irish Bank |
BMW Savings |
Catholic BS |
Chesham BS |
Chorley & District BS |
Citibank |
Cumberland BS |
Direct Line |
Ecology BS |
Harpenden BS |
Icesave |
Marsden BS |
Northern Rock |
Moneyfacts.co.uk |
“Of the 116 savings providers 12 have not announced a drop in their rates. Of these only Cumberland BS has announced a rate commitment to their savers guaranteeing not to change their rates until April 2008. A brave move considering the current climate, and almost certain predictions of a further rate cut within the not so distant future.
“22 providers have cut some rates on either individual accounts or tiers by more than the quarter point reduction imposed by the Bank of England. These include some of the larger providers, such as HSBC, Alliance & Leicester, Halifax, Lloyds TSB, NatWest and Royal Bank of Scotland.
“Such large cuts are disappointing, savers should invest a little time to check their current rate and how it compares to the market. Don’t accept a poor paying account, vote with your feet. Rates above 6% are easily found, so don’t settle for a gross rate of anything less than 5.35% if you are a standard rate tax payer otherwise in the longer term your savings will fall in value.”
Providers who have passed on more than the 0.25% cut: |
|
Chelsea BS |
by up to 0.30% |
Derbyshire BS |
by up to 0.30% |
Dudley BS |
by up to 0.30% |
Leeds BS |
by up to 0.30% |
Nationwide BS |
by up to 0.30% |
Northern Bank (NI) |
by up to 0.30% |
Norwich & Peterborough BS |
by up to 0.30% |
Scarborough BS |
by up to 0.30% |
Britannia BS |
by up to 0.35% |
Clydesdale Bank |
by up to 0.35% |
First Trust Bank (NI) |
by up to 0.35% |
NatWest |
by up to 0.35% |
Nottingham BS |
by up to 0.35% |
Royal Bank of Scotland |
by up to 0.35% |
Sainsbury's Bank |
by up to 0.35% |
Yorkshire Bank |
by up to 0.35% |
Lloyds TSB |
by up to 0.40% |
Bradford & Bingley |
by up to 0.40% |
Halifax |
by up to 0.40% |
HSBC |
by up to 0.49% |
Alliance & Leicester |
by up to 0.50% |
Ulster Bank (NI) |
by up to 0.50% |
Moneyfacts.co.uk |
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Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry.
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