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Lagging lets down cheap mortgages

Date: Thu, 15 Sep 2005

Make sure your cheap mortgage provider is reflecting the reduction in the Bank of England base rate.

Moneyfacts.co.uk reveals that a number of providers have cut their savings rates ahead of applying reductions to mortgages.

Jane Dawson explained: "Unfortunately some providers have employed unfair tactics by cutting their savings rates before reducing their existing customers’ variable rate mortgages."

With some financial institutions this 'gapping' is for just a few days but in others it is almost a month. While 'lagging' saves providers pennies it costs the customer, so it is worth checking to see if you been have victim to the trend.


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