Darren Cook, mortgage expert at Moneyfacts.co.uk, says: “Following the latest base rate cut, the average rate for a new two- year tracker rate mortgage has only reduced by 0.85%, with the door of opportunity closing fast for new borrowers with only 45 tracker rate products available overall.
“As happened after November’s base rate cut, new tracker rate mortgage deals quickly disappeared from view, but this time around they have failed to return to the market, mounting speculation that mortgage providers have strong views and expectations that base rate will be cut again.
“A week after the 1% point reduction to base rate, only one in 10 mortgage providers have reduced their standard variable rate by the full amount, 11 providers have reduced by less than 1%, leaving 76 providers still to announce their intentions.
“Predictably, we have now reached the point where banks and societies have decided on which side of their balance sheet they are willing to support. There is now a reluctance to cut rates in the fear that saver’s deposits might begin to move elsewhere.
“I would be surprised if we see many more announcements this time around and if a further base rate cut materialises early in the New Year, I foresee an even lesser impact on new mortgage borrowing.”