Banks' Small Print Ruse to Block Cuts; Banking Scam: Interest Rate Cuts May Not Help Homebuyers

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Byline: Becky Barrow

BANKS may use the small print in mortgage contracts to prevent borrowers benefiting from future interest rate cuts by the Bank of England.

Experts warned yesterday that little-known clauses mean the interest rate paid by borrowers may not fall when the Bank's rate drops.

This represents a major blow for cash-strapped homeowners desperately hoping to see their monthly mortgage bill drop.

Last week, the Bank of England cut rates by 1.5 percentage points to 3 per cent.

But many bank giants did not cut their rates until ordered to do so by the Prime Minister.

With interest rates expected to fall as low as zero, …