Jump to main content of pageaccessibility informationSitemap
15 Oct 2019

Go Direct Personal Finance News  2009

Base rate cut one month on

One month on from the one per cent base rate cut and we can finally see the lie of the land. Once again it’s savers who have to endure the pain.

Savings

77% of providers have announced cuts in their savings rates with the majority once again opting to pass on up to the full cut or more.

Only 10 providers opted to pass on less than full cut including Anglo Irish Bank, Marks & Spencer Money and Manchester BS.

The average savings rate on a no notice account now stands at just 1.48%*, with 38%* of the accounts paying a rate of 1% or less.

*Figures based on a £5K balance

Michelle Slade, analyst at Moneyfacts.co.uk, commented:

“Moneyfacts has been recording savings rates since 1988 and if base rate is cut further this week as predicted we are likely to see the average rate drop to the lowest level ever seen.

“With so many accounts now paying such low rates and the number likely to increase, savers really need to make sure they review the rate they are getting.

“Those looking for an instant access account can still get 4.55% from Anglo Irish Bank. By comparison, Bank of Ireland (UK) is paying just 0.001% on its Card Saver account.

“The impact of high inflation and tax has meant that basic rate tax payers currently need to earn a rate of 5.13% to break even, which is virtually impossible to find in the current market.

“Plans by the Conservatives to abolish savings tax for basic rate taxpayers can be seen as a welcome move to encourage people to save and help them make the most of their money.”

Mortgages

76% of mortgage providers have announced a cut to their standard variable rate (SVR), with only 19 lenders opting to pass the cut on in full.

72% of those that have announced opted to pass on between 0.15% and 0.99%, amongst them some of the UK’s biggest mortgage lenders.

Five lenders still have an SVR of 6% or above, including:

Lender

Current SVR

Stroud & Swindon BS

6.79%

Kent Reliance BS

6.75%

Chesham BS

6.70%

Market Harborough BS

6.25%

Darlington BS

6.12%

Source: Moneyfacts.co.uk 5.1.09

 

Michelle Slade, analyst at Moneyfacts.co.uk, commented:

“With each base rate cut, the number of lenders passing the cut on in full to their SVR continues to dwindle. It is likely that some lenders have already cut rates as low as they are prepared to go.

“With Stafford Railway BS cutting its SVR to 3.99%, it is disappointing that other building societies have SVRs over 6.00%.

“Some building societies are opting not to cut their SVR so they can offer higher rates to their savers. However, the three lenders with the highest SVRs have all cut savings rates by more than the base rate cut, with Stroud & Swindon BS cutting rates by up to 2.50% and Kent Reliance BS cutting rates by up to 2.00%.

“Customers with Cheltenham & Gloucester, Lloyds TSB Scotland and Skipton BS should continue to benefit as these lenders have a guarantee to offer an SVR at a set percentage above base rate.”

 

Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry. 

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.

Go Direct.co.uk is a trading style for website purposes of Go Direct UK Ltd.

Go Financial Services is a trading style of Go Direct UK Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales Company 5703224. FCA Number 456600

We normally do not charge a fee for mortgage advice, however this is dependent on your circumstances. Our typical fee would be £500

Remortgage | Mortgage Guide | Remortgage Guide | Life Insurance Quote | Mortgage Life Insurance | Decreasing Life Insurance | Home Insurance Quote | Conveyancing Quote | Mortgage Comparison | Free Mortgage Advice | Mortgage Rates | Mortgage Payment Calculator | Mortgage Protection | Best Mortgage | Mortgage Lenders | Income Protection | Remortgage Lenders | Gas and Electric | Remortgage Calculator