National Homebuyers: 'Rate cut has not been passed on'
Mortgage holders may find that their financial difficulties are not being eased as quickly as they might have hoped following the cut to the base rate of interest.
[UKPRwire, Fri Dec 28 2007] Although many people celebrated the 0.25 percentage point rate cut in December, it appears that the savings are not necessarily being passed on to borrowers.
Moneyfacts points out that many people are being forced to endure financial difficulties for longer than they really should.
It says that only 31 mortgage providers have changed their Standard Variable Rate (SVR), while six have reduced it by less than 0.25 per cent.
"Mortgage rates have moved at a similar pace to the last two rate increases in July and May, where we saw 31 and 37 announcements within the first week," said Lisa Taylor, analyst at Moneyfacts.
"But compare this to the last time we saw rates fall back in August 2005, where 46 lenders had made an announcement; the rate of change now appears to be relatively slow," she added.
Fast cash for property expert Julian King adds, "The effect of the credit crunch will be felt for sometime as banks continue to be cautious over their lending criteria.
"Homeowners are still feeling the strain of interest rate rises through 2007 and the pressure doesn't seem to have abaited. Add to this the continued reduction in property prices across the UK and for some a quick property sale is the only available solution".
Mr King is a director of National Homebuyers, the UK's leading fast property purchase firm, guaranteeing to make an offer on any property in the UK, regardless of its condition or location for vendors who need a quick sale. The company also offers a Sell and Rent Back mortgage rescue scheme for homeowners who want to release equity in their homes.
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