The treasury has launched an investigation into claims that mortgage lenders have failed to pass on the latest cuts in interest rates to borrowers.
Shares in the main mortgage lenders fell sharply in response to the announcement.
But spokesmen for the industry defended their decisions saying lenders need to protect savers. They also maintain further cuts would boost house price inflation.
Financial Times 20/07/99 page 12
The Times 20/07/99 page 29
