Bradford & Bingley: Pass on interest cut to help Buy-to-Let

Bradford & Bingley agrees to pass on the Bank of England base interest rate cut but it will only benefit Buy-to-Let loans, product variable loans and Self-certification mortgages due to the lender not cutting its Standard Variable Rate (SVR).

Bradford & Bingley made the cut to its mortgage product range that generally charge much higher interest rates than tracker rate mortgages or fixed rate loans that generally follow the base rate. But Bradford & Bingley who are the largest Buy-to-Let lender have said that they will not pass on the cut to its borrowers who are on the SVR although this only takes up 6 percent of B&B mortgage book.

With more than 20 lenders withdrawing deals that would have helped customers save money off their monthly mortgage payment and other banks not willing to pass on the cut immediately is causing uproar in the Government who are insisting that the banks should do the right thing and pass on the cut to its customers.

Abbey and Lloyds TSB remain the only two lenders who said they would pass the full 1.5 percent rate cut onto their SVR.

Source: FT