HSBC and Lloyds TSB pass on the full interest rate cut

HSBC (LON:HSBA) have announced that it would pass on the full half a percent interest rate cut to all its business customers and mortgage holders, this news comes after the Bank of England announced that they will cut the base interest rate to 1.5 percent slashing another half a percent off the rate.

The move by HSBC will see customers who hold variable rate mortgages with the bank paying an interest of 3.94 percent, while small businesses will also benefit from the full rate cut.

Cheltenham & Gloucester the mortgage arm of Lloyds TSB (LON:LLOY) also announced they will pass on the full Bank of England rate cut.

Meanwhile, Nationwide, Britain’s biggest building society said that they will not pass on any of the interest rate cut to its existing customers that hold tracker mortgage loans, but have said just said it will pass on the full half a percent cut to its borrowers linked to its SVR.

The Bank of England base interest rate is now at 1.5 percent in an attempt to stimulate the economy and avoid a lengthy and painful recession, the bank have urged lenders to pass on the full rate cut, however in a recent report the Chancellor said that mortgage customers should not expect the full rate cut from all lenders.

Source: reutersBonnie and Clyde dvd