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Financial services firms 'focused on lending'
A leading financial services body has suggested that providers in the sector are currently focused on mortgage lending.
Moneyfacts spokesperson Michelle Slade said this focus means that they are cutting rates on homeowner loans to attract new business, while savings rates are also then being reduced to "balance the books".
She added that the uncertainty over the base rate means many savers are currently taking a short-term view, but are being punished for the reductions.
"With a change in bank base rate still predicted to be a little way off, the situation for savers is likely to get worse before it gets better," she outlined.
"To limit the effects of falling rates, savers need to review their portfolio regularly to ensure they are receiving competitive rates."
Last month, Moneyfacts suggested that the average rate on two-year fixed-rate mortgages has fallen to 4.52 per cent, its lowest level since September 2003.