Shelter Scotland today welcomed the one and half per cent interest rate cut and challenged banks and mortgage lenders to pass the saving on to help hundreds of thousands of struggling homeowners.

Graeme Brown, director of Shelter Scotland, said: 'This interest rate cut gives lenders a golden opportunity to throw a lifeline to cash-strapped homeowners who are facing crippling household costs.

If passed on it would mean a household paying a mortgage of £150,000 would see an average monthly saving of around £134.

'Shelter figures show more than 900,000 homeowners across the UK are constantly struggling or falling behind every month with their mortgage payments.

'Many of the lenders failed pass the cut on to borrowers last month. With this significant rate cut by the Bank of England, lenders have both a financial and moral duty to cut their mortgage rates accordingly.

'Irresponsible lending is one of the reasons thousands of people across the UK are struggling to keep up with their mortgage payments, and why these people now live in daily fear of losing their homes.'