Last month all nine policy makers that constitute the Bank of England’s Monetary Policy Committee agreed to cut interest rates to 5.5% from 5.75%. Unfortunately the unanimity they displayed was not shared by lenders as approximately one in five of them failed to pass it on. To my mind this begs the questions just how much money do the banks want to make and whatever happened to the principle of Treating Customers Fairly?

Intelligent Finance which I have always rated as a decent lender didn’t reduce it’s standard variable rate. Neither did the Skipton or Newcastle Building Societies, nor 16 other lenders for that matter. In addition Northern Rock- or wrek- as brokers are now referring to it- failed to pass on the full cut as did Egg and Alliance and Leicester.

I think I can appreciate, given their current plight, Northern Rock and Alliance & Leicester wanting to boost their profit margins, but in these difficult times borrowers need as much help as they can get and it is plain for all to see that we cannot expect much help from the banks.

They may well argue that they have all just signed up to the new Banking Code which requires them from March to offer at risk customers alternative debt repayment plans , but this is shutting the barn door after the horse has bolted.

If the Bank of England does cut rates again on Thursday what do you think are the chances of lenders passing on the cut in its entirety. Slim if their recent actions are anything to go by.