Mortgage providers are delaying passing on December's base rate cut to mortgage loan holders, one price comparison website has observed.

According to moneysupermarket.com, mortgage debt could mount as companies put off implementing rate cuts in response to the Bank of England's decision to lower the cost of borrowing by 0.25 per cent.

Some 78 per cent of lenders have not yet passed on the rate cut to mortgage loan holders, although 37 per cent have announced plans to do so either in the new year or at the end of the month, the organisation pointed out.

Louise Cuming, head of mortgages with the price comparison website, said that companies are failing to treat their customers - who may be suffering with mortgage debt - fairly.

"In the current economic climate I would have liked to have seen providers showing a little more compassion towards borrowers who have spread themselves thin over the Christmas period," she said.

The Royal Institution of Chartered Surveyors has predicted that debt troubles may be eased for mortgage holders next year if the Bank implements further rate cuts, as is widely predicted.
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