Brown urges banks to cut mortgage costs

LONDON, Dec. 5 (UPI) -- Banks overcharging borrowers on mortgages should cut back the rates immediately, British Prime Minister Gordon Brown said Friday.

During a Citizens Advice Bureau meeting, Brown vowed to take action against banks responsible for drastically exceeding the Bank of England interest rate on mortgage payments, The Daily Mail reported.

"Remember, the last time when the interest rates came down 1.5 percent we had to talk to the banks before things moved forward but things did move forward," Brown said. "And we will be talking to the banks again."

Brown's comments came after reports that some British banks have been charging more than three times the official rate, the Mail said.

Brown said any rate cuts by banks must be passed onto borrowers.

The Royal Bank of Scotland, which implemented a 1 percent interest rate cut Thursday, has already agreed to pass a portion of the cut to customers.

The Mail said the bank announced it would be cutting its standard variable rate mortgage to 4.44 percent, a 0.75 percent decline.