Pass on cut, Shelter urges
05 December 2008
Shelter has welcomed the interest rate cut of one percent, and is challenging banks and mortgage lenders to pass the saving on to help hundreds of thousands of struggling homeowners.
Shelter chief executive Adam Sampson said: ‘Despite this being the lowest Bank of England interest rate for over half a century, some mortgage lenders are still using the rate cut to protect their own profits rather than passing them on to hard up homeowners.
‘This rate cut could make a massive difference to hundreds of thousands of families struggling to balance the financial demands of the festive period with sky-high mortgage repayments so we will be watching carefully to make sure lenders who didn’t pass it on last time, do so this time.
'If passed on it would mean a household paying a mortgage of £200,000 would see an average monthly saving of around £122’.
Shelter figures show more than 900,000 homeowners are constantly struggling or falling behind every month with their mortgage payments.
Mr Sampson added: ‘Shelter is calling on lenders to give struggling customers the best Christmas present they could have and urgently cut mortgage rates.’
