what interest rate cut?

The Bank of England announced on Thursday that it would cut interest rates by 0.25% to 5.25% after signs of a slowering economy. However, whilst banks benefited from the cuts immediately, some lenders are delaying passing the savings on to their customers.

The Uk’s biggest lenders which include Halifax, Abbey, Nationwide and Woolwich announced within minutes that the savings would be passed on to customers.

HSBC, however, will not pass on the cut to it’s borrowers on it’s standard variable rate until the 7th March.

Some borrowers will have to wait as long as three months for repayments to fall. BM Solutions, part of Halifax, has told customers they may have to wait until May. They will end up more than £100 worse off than those whose lender passed on the rate cut immediately. Northern Rock customers have to wait until the second month after a change.