Home owners struggle with mortgage gap
New research from financial data provider Defaqto shows that many home owners are paying £2,000 per year extra on their mortgage as lenders have not passed on rate cuts.
The Bank of England made several cuts to the base rate in late 2008, but lenders have refused to pass these cuts on in full.
Northern Rock has been cited as one of the worst lenders in terms of lowering cuts, charging a 5.84% rate in December.
The difficulty in meeting expensive interest rates has led to many consumers being unable to find a remortgage deal they can afford.
January 5th, 2009 at 9:02 am
This is a little misleading, as the banks have passed on part of the cuts and therefore customers are not paying extra - they are paying less, but still more than they could be!