UK lenders pledge to pass on full rate cut

The UK’s largest mortgage lenders vowed today to pass on the interest rate cut in full following pressure from Chancellor Alistair Darling.

A flurry of banks and building societies said they were to drop rates by 1.5% after the Bank of England slashed the base rate yesterday.

The move by lenders came after banking chiefs were hauled in front of the Chancellor and told they must pass on the cut “as soon as possible”.