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Base rate – one month on

Base rate – one month on

Category: Economy

Updated: 02/04/2009
First Published: 02/04/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

One month on from the Bank of England's historic decision to cut the base rate to the lowest level in 315 years, its impact on savings and mortgage rates is becoming clearer.

In total, 72 per cent of providers have announced cuts in their savings rates with the majority passing on the full cut to at least one of its accounts. 14 providers, including Anglo Irish Bank and Northern Rock have opted to pass on less than the full cut.

Savers with no notice accounts can now expect an average rate of just 0.66 per cent, down from 0.83 per cent at the start of March

Michelle Slade, analyst at Moneyfacts.co.uk said: "With many accounts already paying extremely low rates even before last month's cut, there was not much further many of the providers could go."

Just 29 per cent of mortgage providers have decided to cut their standard variable rate, down from 80 per cent in December, with only 11 lenders deciding to pass the cut on in full.

"With each base rate cut, the number of lenders passing the cut in full to their SVR continues to dwindle," Slade added. "Many lenders have now cut rates as low as they are prepared to go."

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