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Darling urges lenders to pass on rate cuts
14/04/2008 10:44:00
Mortgage lenders have been urged by chancellor Alistair Darling to pass on the interest rate cut to homeowners to help them avoid debt.
According to prime minister Gordon Brown, the chancellor is expected to meet with the heads of various banks to discuss measures to ensure that the effects of the rate reductions are passed onto consumers.
Speaking to Reuters, he said that cutting interest rates should hopefully reduce pressure on the economy during this "difficult time".
"What I am saying to the banks is we have helped them...therefore it is time to ensure that the banks themselves help both individual businesses and mortgage holders by ensuring they pass on these interest rate reductions," he added.
The Bank of England (BoE) cut the base rate again to five per cent this month, despite concerns over inflation, in order to support the economy.
Meanwhile, Nationwide and Alliance & Leicester said they were increasing their fixed-rate deals by 0.35 per cent.
Halifax and First Direct were among those lenders who announced cuts in line with the BoE's decision.
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