Bank boss may have mansion mortgage relief, refuses to pass on rates cut to borrowers

When the Reserve Bank decided to lower interest rates last month, there was a collective sigh from all homeowners.

With banks under so much scrutiny, they were quick to pass on the cut to mortgage holders.

Except for Bank of Queensland subsidiary Virgin Money.

To date, Bank of Queensland chief executive Patrick Allaway, who is responsible for Virgin Money's rate decisions, won't budge on the small but much-needed rate cut.

But luckily for Allaway, he banks with Westpac, meaning if he's on a variable interest rate, he's just received a cut he won't offer his customers.

A Current Affair knocked on the door of Allaway's multi-million dollar home in Sydney to ask for some answers.

In a statement, the Bank of Queensland group said it had passed on "the full RBA rate cut to all BOQ and ME home lending customers".

"The rate cut was not passed on to Virgin Money Australia and BOQ Specialist customers, realigning previously discounted rates to current market rates," a spokesperson said.

"We are providing rates that align with our competitors while ensuring we can earn sustainable returns to access capital and serve customers into the future."

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