Lenders hold off passing on interest rate cut

Many of the UK’s lenders failed to pass on the full benefit of the Bank of England’s 0.25% point cut to the base lending rate to homeowners yesterday. The five HBOS brands – Halifax, Bank of Scotland, Birmingham Midshires, The Mortgage Business and Intelligent Finance – said a 0.1% cut would take effect on 1 March. Northern Rock announced a 0.16% cut. Lenders yet to announce any change include Nationwide, HSBC, Cheltenham & Gloucester, NatWest, Woolwich and First Direct. References: Financial Times 08/02/03 page 3, Daily Telegraph 08/02/03 page 4, The Guardian 08/02/03 page 26, The Independent 08/02/03 page 21