The Daily Express today looked at new research which shows that three quarters of lenders have failed to pass on the Bank of England’s latest interest rate cut to mortgage customers. Despite the cut from 5 per cent to 4.5 per cent two weeks ago, only a handful of lenders have reduced their standard variable rates by the full half point and most have passed on either a partial cut or none at all. The Daily Mail revealed that predictions of massive falls in the Bank of England base rate have made tracker mortgages hugely popular in the past fortnight. As a result, many of the best deals are disappearing fast and experts advise borrowers to act quickly if they find a good rate. The Mail also explained how some of Britain’s biggest banks and building societies have small print which states they do not need to reduce the cost of tracker loans if base rates were to fall, as some economists predict, to as low as 2pc. The advice was simply to read the small print when applying for a new mortgage.
Finally, the Daily Mirror noted that two-thirds of mortgage deals at the moment offer to pay both your legal and valuation fees but experts warn that borrowers shouldn’t get fixated on them as they may pay the price later with a higher interest charge.