as private equity firm which owns the debts refuses to pass cuts on

Thousands of Northern Rock mortgage customers are stuck on higher interest rates after the private equity firm which owns their debts refused to pass cuts on. Cerberus Capital Management bought £13billion of mortgages from the Government agency set up to handle them following Northern Rock's collapse. The Bank of England slashed its interest rate in half to an all-time low of 0.25 per cent earlier this month, making borrowing cheaper. But unlike many other major lenders, Cerberus has not passed this cut on by reducing the standard variable rate paid by almost 100,000 customers. It flies in the face of a demand by Bank Governor Mark Carney, who said there was 'no excuse' for failing to give customers the benefit. Conservative MP Andrew Tyrie, chairman of the influential Treasury Select Committee, said: 'I warned of the risk that customers might lose out. It looks as if that might be the case.' Cerberus bought £13billion of Northern Rock mortgages in November and handed £3.3billion of them to small High Street bank TSB. TSB has passed on the rate cut and state-owned UK Asset Resolution has also cut costs for remaining Northern Rock customers.

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