Variable rate mortgage lenders are failing to pass on cuts in the base rate to customers, meaning some will face "real financial difficulty" when rates climb again, research suggests.
A study by consumer group Which? found 95% of standard variable rate (SVR) mortgage lenders had not passed on cuts to the main interest rate, which now stands at an all-time low of 0.5% having been at 5% in October 2008. According to the research, the average SVR is now almost 3.5% above the base rate, with some lenders' SVRs at more than 6%. Which? CEO Peter Vicary-Smith said: "Millions of people are on variable rate mortgage deals and for many a rate hike could mean they're facing real financial difficulties. "Banks have enjoyed increased margins on mortgages for the last few yea...
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