'Shameful banks failing to pass on rate cuts'

Mortgage lenders that fail to pass on the monetary policy committee''s (MPC) base rate cut to borrowers are "shameful", according to the National Association of Estate Agents (NAEA).

The NAEA claims that lenders who fail to reduce their customers interest repayments are defying the government and acting against the wishes of the industry.

"Lenders involved in this damaging standoff should be ashamed of the lack of commitment that they have shown to helping house-hunters," the NAEA states.

Last week, the MPC surprised analysts by dropping the base rate by 1.5 per cent – the largest amount in 27 years – but the NAEA believes thousands of hard-working British families will be impacted by lenders failing to pass on the savings.

In related news, many mortgage providers have clauses in their contracts that put a lower limit on interest rates, according to the Daily Mail.

Director of mortgage broker Savills Private Finance Melanie Bien told the news provider that borrowers should read their mortgage contract carefully before signing.

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