Banks face pressure on rate cut

Banks and building societies are coming under increasing pressure from MPs to pass on the latest cut in interest rates to their mortgage customers.

Some of the major lenders made an immediate decision to pass on the 1% Bank of England rate cut to customers with a variable-rate mortgage.

The UK's biggest lender HBOS will only pass on 0.25 of a percentage point.A spokesman said the government had expected it to be run along commercial lines, which was what it was doing.

Although the Halifax - part of HBOS with Bank of Scotland - has passed Thursday's Bank of England rate cut on in full to those with tracker mortgages, around one in seven customers will lose out.

The Halifax is benefiting from around £12bn of taxpayers' money as part of a government bailout.