Conditions for new mortgage borrowers are unlikely to ease even though interest rates have hit an all-time low, as expected property price falls maintain banks’ reluctance to lend.

Brokers said until the supply of mortgages improved, Thursday’s rate cut would do little to lower the cost of lending for first-time buyers or those looking to switch to a new deal.

The latest cut, which brings the Bank rate to 1.5 per cent, is also a blow for savers as most providers are expected to reduce saving rates by the full half a percentage point.

Lenders are expected to reprice their new tracker mortgage rates at a higher margin above base, effectively wiping out the benefit of the cut for new borrowers.

Woolwich withdrew its new tracker deals immediately after the rate cut was announced, while Lloyds TSB and HSBC removed some rates on Thursday.

Fewer existing borrowers will benefit from the cut this time round as some lenders, including Nationwide and Skipton Building Society, are enforcing “collars”, which prevent tracker rates falling below a certain level.

Ray Boulger at John Charcol, the broker, estimated that 275,000-300,000 of the 4m borrowers with a tracker mortgage would not benefit from the cut. Nationwide, Lloyds TSB, HSBC and Skipton Building Society were the only lenders to cut their standard variable rate by the full amount on Thursday, while Halifax reduced its rate by a quarter point.

Royal Bank of Scotland and Northern Rock, the state-owned lenders, have so far failed to pass on the rate cut to their SVR. RBS said its SVR was under review.

Brokers said the rate cut would do little to help new borrowers secure a loan.

“It won’t make mortgages more readily available and won’t encourage lenders to increase the loan-to-values they are prepared to offer,” said Melanie Bien, director of Savills Private Finance.

“First-time buyers will still struggle to get a mortgage unless they can drum up a 25 per cent deposit.” Banks are more likely to pass on the full rate cut to new saving rates, analysts said. Cash savers, particularly those who rely on their deposits to provide an income, have been urged to lock their money into fixed accounts as soon as possible before offers are withdrawn.

ICICI, the Indian-owned bank, removed the last remaining fixed-rate bond offering more than 5 per cent hours before the Bank’s cut. Only one account, from Close Brothers, is still paying 5 per cent but this is reserved for customers with £10,000 ($15,194) or more.

More than three-quarters of providers passed on the last interest rate cut in full, leaving the average fixed savings rate at 3.28 per cent.

Easy access accounts are paying much lower rates and further cuts are expected before the end of the month. More than 200 variable rate savings accounts now pay 0.5 per cent or less, according to Moneynet.co.uk.

The best no-notice savings rate, from Anglo Irish Bank, is 4.55 per cent but this rate could be short-lived.

Cash rates for many accounts are now so low that many investors have begun to move their money into corporate bonds and fixed-income equity funds for yields exceeding 5 per cent, according to brokers.