CML responds to decision to reduce rates to 5.25%

Responding to today's MPC decision to reduce the base rate to 5.25%, the Council of Mortgage Lenders welcomes the reduction which will provide immediate relief for borrowers with mortgages tracking the base rate. 

Michael Coogan, CML director general, commented: 

“This is good news for the quarter of UK borrowers on tracker rates who will see an imminent reduction in rates.  

“However, borrowers should not expect that a base rate reduction will automatically result in a cut in standard variable rates or discounted rates across the market. 

“Lenders’ rate setting policies are more complex than simply the level of the bank base rate. They are determined by a range of factors including the cost of retail funding and the cost and availability of wholesale funding.”