Several top UK mortgage lenders have relaunched their tracker mortgage ranges to reflect the Bank of England base rate cut of 1.5 per cent last week. However, both consumers and consumer groups are responding angrily, because the lenders have failed to pass on the 1.5 per cent reduction.
Following decisions by many mortgage lenders to re-release their fixed-rate mortgages priced competitively, a degree of optimism had crept into the mortgage market . However, Lloyds TSB, Abbey and Alliance and Leicester have relaunched their loans without reflecting the full base rate cut .
Tracker mortgages, according to Council of Mortgage Lenders data, stand at their most expensive in the last seven years. With the Libor continuing to fall, further repricing of mortgage loans may be a possibility.
With mortgage lending at a record low in September, the market urgently needs further reinvigoration.
