Today we can get a better picture of how the shock 1.50% cut in base rate last month affected the mortgage and savings markets and it doesn't make for good reading.
75% of mortgage lenders failed to pass the 1.50% cut on in full to their SVR, but 92% of providers passed the cut on in full or more to their savings rates.
Michelle Slade, analyst at Moneyfacts.co.uk, comments: "Both borrowers and savers have been penalised following the last base rate cut and it is hard to believe that it will be any different if base rate is cut again.
"Many of the large high street banks passed the cuts on equally to SVR's and savers. However, Barclays Bank, through its Woolwich brand, failed to pass on any cut to its SVR, but cut its savings rates by up to 1.75%.
"Savers need to be vigilant on the rate they are receiving as if base rate continues to fall, we could end up with a situation where the vast majority of accounts pay less than 1.0% interest.
"Mortgage rates for new customers are starting to come down, but nowhere near as quickly as they should or expected.
"Fixed rate mortgages are the worst hit, with the gap between the cost to the lender of obtaining the money on the money markets and the average rate widening rather than decreasing.
"Many lenders which withdrew tracker mortgages straight after the last cut have not replaced them and are unlikely to do so in the near future, particularly if base rate is cut again.
"Borrowers will be disappointed that they are not really feeling the full benefit and will be hoping that, as speculated, the banks and building societies will be forced to pass any future cuts on in full.
"Previously the cost of obtaining funding in the money markets has been cited as the reason for the lack of lending, but this has come down 1.72 basis points since the last cut and it's about time this was passed on to mortgage deals."
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.