Which? says mortgage rates should fall

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Which? says mortgage rates should fall

Wed 3rd Dec 2008

A leading price comparison site has called for mortgage lenders to cut interest rates, claiming that they "have been having their cake and eating it for too long".

According to Which?, many banks initially justified their high rates after the Bank of England's base rate cut by saying that the London Interbank Offer Rate (Libor) still remained high.

However the consumer body found that Libor has fallen by more than the 1.5 per cent base rate cut since November 5th, meaning that some lenders are now paying less interest than before the Bank of England's cut, but are still charging their customers the same amount.

Which? said: "If the [base] interest rate is cut again on December 4th, it will be even more important for banks to cut their rates and give consumers the break they deserve."

Following the interest rate cut last month, Alistair Darling met with the heads of several high street banks to pressure them into passing on the Bank of England's cuts to the public.

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