Building Societies hampered by their source of funds struggle to pass on the 0.25 percent BOE rate cut.
Building Societies Struggle To Pass On Rate Cuts To Customers

Due to the way in which Building Societies source their funds for lending purposes, Banks have the upper hand when it comes to the lowest rates on the mortgage market.

Last weeks BoE rate cut slashed the initial cost of borrowing in half but as Building Societies have to bridge the difference between the savers rate they offer their customers and their lending rate they have been hesistant to reduce their rates.

The current highest SVR title is held by YBS (Yorkshire Building Society) at 5.79 percent - but they have agreed to lower the rate by 0.25 percent after a week of deliberation.

Currently over 70 percent of the lowest fixed-rate mortgages are bank offerings, however Building Societies are able to provide deals where banks are unwilling due to the customer profile.

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