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/uk_politics/7766364.stm
The article has changed 11 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Banks face pressure on rate cut | Banks face pressure on rate cut |
| (about 1 hour later) | |
| Banks and building societies are coming under increasing pressure from MPs to pass on the latest cut in interest rates to their mortgage customers. | Banks and building societies are coming under increasing pressure from MPs to pass on the latest cut in interest rates to their mortgage customers. |
| Some of the major lenders made an immediate decision to pass on the 1% Bank of England rate cut to customers with a variable-rate mortgage. | Some of the major lenders made an immediate decision to pass on the 1% Bank of England rate cut to customers with a variable-rate mortgage. |
| The UK's biggest lender HBOS will only pass on 0.25 of a percentage point. | The UK's biggest lender HBOS will only pass on 0.25 of a percentage point. |
| A spokesman said the government had expected it to be run along commercial lines, which was what it was doing. | A spokesman said the government had expected it to be run along commercial lines, which was what it was doing. |
| Although the Halifax - part of HBOS with Bank of Scotland - has passed Thursday's Bank of England rate cut on in full to those with tracker mortgages, around one in seven customers will lose out. | |
| The Halifax is benefiting from around £12bn of taxpayers' money as part of a government bailout. | The Halifax is benefiting from around £12bn of taxpayers' money as part of a government bailout. |
| Chancellor Alistair Darling made a fresh appeal to banks to pass on the new rates to help individuals and businesses. | |
| "Banks must treat their customers fairly," he said. | |
| "In the same way that banks expect their customers to stick to their side of the deal, customers should be able to expect that banks will stick to theirs." | |
| The chancellor insisted that while there were "some pretty difficult conditions" ahead, the UK would get through the current tough times. | |
| 'Decent margin' | 'Decent margin' |
| Health Secretary Alan Johnson said on the BBC's Question Time that HBOS needed to explain its decision on rates. | |
| "I'd want to know what the logic is behind that. We want these banks to continue to be effective and we want them to continue to ensure their own futures," he said. | "I'd want to know what the logic is behind that. We want these banks to continue to be effective and we want them to continue to ensure their own futures," he said. |
| "So I think we'd have to see what their rationale is, what the circumstances are in which they've made that announcement."See who has cut mortgage rates | "So I think we'd have to see what their rationale is, what the circumstances are in which they've made that announcement."See who has cut mortgage rates |
| But Shane O'Riordain, of HBOS, defended the bank's decision. | But Shane O'Riordain, of HBOS, defended the bank's decision. |
| He said: "I think it is worth remembering the government has said it expects our bank to be run on commercial lines, and that's exactly what we're doing. | He said: "I think it is worth remembering the government has said it expects our bank to be run on commercial lines, and that's exactly what we're doing. |
| "All we are simply doing is seeking to achieve a decent margin like any other business, nothing more and nothing less." | "All we are simply doing is seeking to achieve a decent margin like any other business, nothing more and nothing less." |
| HSBC, Lloyds TSB/Cheltenham and Gloucester and Bristol & West have announced they will pass on the one percentage point cut in full. | HSBC, Lloyds TSB/Cheltenham and Gloucester and Bristol & West have announced they will pass on the one percentage point cut in full. |
| However, the Nationwide building society is only passing on the full 1% cut to some of its customers. | However, the Nationwide building society is only passing on the full 1% cut to some of its customers. |
| And the Royal Bank of Scotland, which is majority-owned by the taxpayer, has so far only committed to pass on the cut in full to business customers, saying it needed to strike a balance between borrowers and savers. | And the Royal Bank of Scotland, which is majority-owned by the taxpayer, has so far only committed to pass on the cut in full to business customers, saying it needed to strike a balance between borrowers and savers. |
| Most existing tracker-deal customers with the Yorkshire Building Society will not see the full cut. | Most existing tracker-deal customers with the Yorkshire Building Society will not see the full cut. |
| Even before the Bank rate change, Lloyds TSB/Cheltenham and Gloucester announced that it would pass the cut on in full to standard variable rate customers. | Even before the Bank rate change, Lloyds TSB/Cheltenham and Gloucester announced that it would pass the cut on in full to standard variable rate customers. |
HOW MORTGAGE LENDERS RESPONDED | HOW MORTGAGE LENDERS RESPONDED |
| Lender SVR before Nov BoE decision SVR after Nov BoE decision Rate change (percentage points) SVR after Dec BoE decision Rate change HBOS 6.50% 5.00% -1.5 4.75% -0.25 Nationwide BS 6.19% 4.69% -1.5 4.00% -0.69 Abbey 6.94% 5.44% -1.5 Under review  Lloyds TSB/ C&G 6.50% 5.00% -1.5 4.00% -1 Northern Rock 7.34% 5.84% -1.5 Under review  Barclays 6.64% No change  5.49% -1.15 RBS 6.69% 5.19% -1.5 Under review  HSBC 6.25% 5.44% (5 Dec) -0.81 4.44% -1 Alliance & Leicester 6.94% 5.84% -1.1 Under review  Bradford & Bingley 7.09% 5.59% (7 Dec) -1.5 Under review  Bristol & West 6.59% 5.49% -1.1 4.49% -1 Britannia BS 6.30% 5.30% -1 Under review  Yorkshire BS 6.60% 5.60% -1 Under review  GE Money 10.39% 8.44% -1.95 Under review  Coventry BS 6.84% 5.34% -1.5 Under review  Standard Life 6.59% Under review  Under review  Clydesdale & Yorkshire 6.64% 5.14% -1.5 Under review  Chelsea BS 6.94% 5.79% (31 Dec) -1.15 Under review  Skipton 6.45% 5.95% -0.5 Min 5% Min -0.95 One Account (RBS) (avg) 6.55% 5.55% -1 Under review  SVR: Standard Variable Rate. All initial changes on 1 December unless stated. All the latest changes on 1 January. | Lender SVR before Nov BoE decision SVR after Nov BoE decision Rate change (percentage points) SVR after Dec BoE decision Rate change HBOS 6.50% 5.00% -1.5 4.75% -0.25 Nationwide BS 6.19% 4.69% -1.5 4.00% -0.69 Abbey 6.94% 5.44% -1.5 Under review  Lloyds TSB/ C&G 6.50% 5.00% -1.5 4.00% -1 Northern Rock 7.34% 5.84% -1.5 Under review  Barclays 6.64% No change  5.49% -1.15 RBS 6.69% 5.19% -1.5 Under review  HSBC 6.25% 5.44% (5 Dec) -0.81 4.44% -1 Alliance & Leicester 6.94% 5.84% -1.1 Under review  Bradford & Bingley 7.09% 5.59% (7 Dec) -1.5 Under review  Bristol & West 6.59% 5.49% -1.1 4.49% -1 Britannia BS 6.30% 5.30% -1 Under review  Yorkshire BS 6.60% 5.60% -1 Under review  GE Money 10.39% 8.44% -1.95 Under review  Coventry BS 6.84% 5.34% -1.5 Under review  Standard Life 6.59% Under review  Under review  Clydesdale & Yorkshire 6.64% 5.14% -1.5 Under review  Chelsea BS 6.94% 5.79% (31 Dec) -1.15 Under review  Skipton 6.45% 5.95% -0.5 Min 5% Min -0.95 One Account (RBS) (avg) 6.55% 5.55% -1 Under review  SVR: Standard Variable Rate. All initial changes on 1 December unless stated. All the latest changes on 1 January. |
| Return to top | Return to top |