Nov. 6 (Bloomberg) -- The U.K. Council of Mortgage Lenders warned homeowners it may not pass on a reduction in borrowing costs if the bank of England cuts the benchmark interest rate today, the London-based Times reported.

The CML, the main lobbying group for banks and building societies, said it did not make commercial sense to automatically pass on the full amount of rate reductions, the newspaper said. Chancellor of the Exchequer Alistair Darling called on banks receiving cash from the government bailout to maintain lending at 2007 levels, the Times said.

To contact the reporter on this story: Andrew MacAskill in London at amacaskill@bloomberg.net

Last Updated: November 5, 2008 21:31 EST