Financial Times - Pandemic policies: Rishi Sunak’s first Budget and a cut in the base rate
Wednesday’s emergency interest rate cut of half a percentage point to 0.25 per cent will immediately benefit some mortgage borrowers, but it is bad news for savers who have suffered from poor rates for many years.
Aaron Strutt, product director at mortgage broker Trinity Financial, told the Financial Times the majority of bigger banks are likely to pass on the change, but many had been caught on the hop by the Bank of England’s move. “A lot of the lenders we’re speaking to are still working out what to do.
“Obviously, they’re under pressure to pass on the reduction, especially in their variable and tracker rates, but they’re telling us they’re already struggling to keep margins on their products.”
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