This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7714628.stm
The article has changed 16 times. There is an RSS feed of changes available.
| Version 6 | Version 7 |
|---|---|
| Brown pressures banks over rates | Brown pressures banks over rates |
| (20 minutes later) | |
| Prime Minister Gordon Brown says the government has held a meeting with bankers in an attempt to ensure lenders pass on the cut in interest rates. | Prime Minister Gordon Brown says the government has held a meeting with bankers in an attempt to ensure lenders pass on the cut in interest rates. |
| He said the Treasury and the Bank of England had taken action to help lenders and it was now the banks' turn to take the lead. | He said the Treasury and the Bank of England had taken action to help lenders and it was now the banks' turn to take the lead. |
| The Bank of England's official rate was cut from 4.5% to 3% on Thursday in a move that shocked markets. | The Bank of England's official rate was cut from 4.5% to 3% on Thursday in a move that shocked markets. |
| So far, only Lloyds TSB and Abbey have said they will pass the cut on in full. | So far, only Lloyds TSB and Abbey have said they will pass the cut on in full. |
| "We are determined to get banks to resume lending," Mr Brown said. | "We are determined to get banks to resume lending," Mr Brown said. |
| The problem banks have got is that they have limited funds and don't have enough money to give to all the customers who may want them Michael Coogan, CML UK mortgage market in graphics | The problem banks have got is that they have limited funds and don't have enough money to give to all the customers who may want them Michael Coogan, CML UK mortgage market in graphics |
| Chancellor Alistair Darling held a breakfast meeting with bank bosses this morning to press the government's case. | Chancellor Alistair Darling held a breakfast meeting with bank bosses this morning to press the government's case. |
| The meeting, held at the Treasury, has now finished and the banks attending were thought to include Abbey, Barclays, HBOS, HSBC, Lloyds TSB, Nationwide, Royal Bank of Scotland and Standard Chartered. | The meeting, held at the Treasury, has now finished and the banks attending were thought to include Abbey, Barclays, HBOS, HSBC, Lloyds TSB, Nationwide, Royal Bank of Scotland and Standard Chartered. |
| 'Commercial decision' | 'Commercial decision' |
| The Council of Mortgage Lenders (CML) said lenders would cut their rates by between 0.5 and 1.5 percentage points in the coming weeks. | |
| However, the CML warned that the precise level of the reductions would be a commercial decision for each individual lender. | However, the CML warned that the precise level of the reductions would be a commercial decision for each individual lender. |
| Michael Coogan, director general of the CML said: "The problem banks have got is that they have limited funds and don't have enough money to give to all the customers who may want them. | Michael Coogan, director general of the CML said: "The problem banks have got is that they have limited funds and don't have enough money to give to all the customers who may want them. |
| "I think over the next few days and weeks we will see that the banks and building societies will move by anywhere between 0.5% and 1.5% - the individual decisions will be on the basis of assessing what they want for their savers as much as what they want for their borrowers," he added. | "I think over the next few days and weeks we will see that the banks and building societies will move by anywhere between 0.5% and 1.5% - the individual decisions will be on the basis of assessing what they want for their savers as much as what they want for their borrowers," he added. |
| These cuts would be for existing customers on standard variable rate (SVR) deals, with deals for new borrowers likely to be re-priced. | These cuts would be for existing customers on standard variable rate (SVR) deals, with deals for new borrowers likely to be re-priced. |
| Almost all tracker mortgages have been withdrawn for new borrowers as lenders consider at what rates to reintroduce them. | Almost all tracker mortgages have been withdrawn for new borrowers as lenders consider at what rates to reintroduce them. |
| Duty | Duty |
| Conservative Party leader David Cameron said that banks that had taken part in the government's bail-out programme should be forced to pass on Thursday's interest rate cut. | Conservative Party leader David Cameron said that banks that had taken part in the government's bail-out programme should be forced to pass on Thursday's interest rate cut. |
| Lloyds TSB, HBOS and Royal Bank of Scotland, which owns NatWest, have taken government cash to strengthen their finances. | Lloyds TSB, HBOS and Royal Bank of Scotland, which owns NatWest, have taken government cash to strengthen their finances. |
| Mr Cameron added that other lenders should also cut rates. | Mr Cameron added that other lenders should also cut rates. |
| The problem, lenders say, is that the key to mortgage costs is not the Bank of England's base rate but Libor - the London Interbank Offered Rate - which is the rate at which banks lend to each other. | The problem, lenders say, is that the key to mortgage costs is not the Bank of England's base rate but Libor - the London Interbank Offered Rate - which is the rate at which banks lend to each other. |
| Friday's daily Libor figure will be closely watched - it will almost certainly still be well above the Bank of England rate, but the question is how far it will have fallen from Thursday's fix. | Friday's daily Libor figure will be closely watched - it will almost certainly still be well above the Bank of England rate, but the question is how far it will have fallen from Thursday's fix. |
| The figures, which are compiled by the British Bankers' Association, are released shortly before 1200 GMT. | The figures, which are compiled by the British Bankers' Association, are released shortly before 1200 GMT. |
| Meanwhile, a number of building societies have said they could take weeks to decide whether to pass on the cut. This would be to consider the affect on savers and to monitor Libor. | Meanwhile, a number of building societies have said they could take weeks to decide whether to pass on the cut. This would be to consider the affect on savers and to monitor Libor. |
HOW MORTGAGE LENDERS RESPONDED | HOW MORTGAGE LENDERS RESPONDED |
| Lender SVR before BoE decision SVR after BoE decision Rate change (percentage points) HBOS 6.50% Under review  Nationwide BS 6.19% Under review  Abbey 6.94% 5.44% -1.5 Lloyds TSB/ C&G 6.50% 5.00% -1.5 Northern Rock 7.34% Under review  Barclays 6.64% Under review  RBS 6.69% Under review  HSBC 6.25% Under review  Alliance & Leicester 6.94% Under review  Bradford & Bingley 7.09% Under review  Bristol & West 6.59% Under review  Britannia BS 6.30% Under review Yorkshire BS 6.60% Under review  GE Money 10.39% Under review  Coventry BS 6.84% Under review  Standard Life 6.59% Under review  Clydesdale & Yorkshire 6.64% Under review  Chelsea BS 7.24% Under review  Skipton 6.45% Under review  SVR: Standard Variable RateAny changes take effect from 1 December | Lender SVR before BoE decision SVR after BoE decision Rate change (percentage points) HBOS 6.50% Under review  Nationwide BS 6.19% Under review  Abbey 6.94% 5.44% -1.5 Lloyds TSB/ C&G 6.50% 5.00% -1.5 Northern Rock 7.34% Under review  Barclays 6.64% Under review  RBS 6.69% Under review  HSBC 6.25% Under review  Alliance & Leicester 6.94% Under review  Bradford & Bingley 7.09% Under review  Bristol & West 6.59% Under review  Britannia BS 6.30% Under review Yorkshire BS 6.60% Under review  GE Money 10.39% Under review  Coventry BS 6.84% Under review  Standard Life 6.59% Under review  Clydesdale & Yorkshire 6.64% Under review  Chelsea BS 7.24% Under review  Skipton 6.45% Under review  SVR: Standard Variable RateAny changes take effect from 1 December |