Halifax short-changes borrowers with quarter-point cut

Published 05th Dec 2008

Britain's biggest lender will pocket most of the benefit of the Bank of England's 1 per cent cut in interest rates
James Charles

Halifax, Britain's biggest lender, has vowed to pass on only a 0.25 percentage point cut in interest rates to borrowers on its variable-rate deals.

The Bank of England dramatically reduced interest rates by 1 per cent today in a desperate bid to thaw the freeze in the mortgage market and boost the fortunes of Britain's homeowners. The base rate is now at its lowest level for 57 years after falling to 2 per cent.

However, Halifax will only cut its standard variable rate (SVR) by 0.25 per cent, to 4.75 per cent, from January 1. It said that it had "balanced the interest of its customers with the commercial imperative of managing its business in a sustainable and prudent fashion."

Source: ' Times '

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