In fact, the Council of Mortgage Lenders (CML) has warned that mortgage lenders may not pass the rate cut on to home owners. In an explanation, the CML stated that:

“The real cost of funds to lenders is determined not by the Bank base rate, but by their own cost of borrowing. And their cost of borrowing depends on what they need to pay savers to attract deposits, as well as how much it costs them to borrow from other banks or the money markets, and the costs of holding capital and sufficient liquidity.”