Three of Northern Ireland’s biggest banks were today urged to “play straight” with customers by passing on the full benefits of the Bank of England’s interest rate cut to help hard-pressed homeowners.

Politicians this morning warned of growing frustration among the public over the perception that banks are treating them unfairly, particularly big names which have been bailed out by the Government.

The base interest rate was yesterday cut by 1% to stand at 2%, a level not seen since 1951.

Of Northern Ireland’s ‘big four’ banks, however, only the Bank of Ireland has agreed to pass the benefit on to its standard variable rate (SVR) products as well as trackers.

Ulster Bank, First Trust Bank and Northern Bank did agree yesterday to pass the cut on to tracker mortgage customers, as they are required to do so. But they are still considering whether to relieve further pressure on SVR customers, whose lending rate is not automatically tied to interest rate cuts.

Today the Prime Minister threw his weight behind demands to banks and building societies to help their customers after only a handful of lenders said they would pass on yesterday's 1% reduction in full.

Gordon Brown told GMTV: “I think banks should really pass on the interest rate cut.

“We are talking to the banks. Remember last time there was a cut, we had to speak to them before it was passed on and we will be speaking to them again.”

Chancellor Alistair Darling also made a fresh appeal to banks to pass on the new rates to help individuals and businesses, urging them to “stick to their side of the deal”.

DUP Assemblyman Robin Newton, who sits on the Stormont Enterprise,Trade and Investment committee, said the banks need to pull their weight in the fight against recession.

“We now have all levels of Government calling for the banks to pass on this cut in full — from the Prime Minister, to MPs, down to our local MLAs,” said the East Belfast MLA.

“The aim of this latest cut is to improve the economic situation we are facing but unless the banks play ball, we aren’t going to get out of this mess. They must play straight with their customers.

“If the man in the street sees these fat cats being protected and keeping a secure job at the same time as being bailed out by his hard-earned money, then there’s no doubt the level of public frustration will grow.”

Speaking on BBC1’s Question Time which was broadcast from Newry last night, Health Secretary Alan Johnson said banks could not be forced to pass on the cut: “We do expect — and certainly that's the whole premise of the Bank of England's decision to bring interest rates down to 2% — that that will be passed on. Certainly, consumers will be looking very carefully as to who's passed it on and who hasn't,” he said.

Northern Ireland’s four main banks last night confirmed they will pass on the Bank of England’s latest interest cut to those with tracker mortgages.