In the News - Mortgage providers
BoE cut base rate but banks raise mortgage rates
Last night leading banks raised their fixed rate mortgage rates despite the quarter point cut in the Bank of England's base rate to 5%. Alliance & Leicester, Britannia, Nationwide and the Royal Bank of Scotland all raised rates. Abbey and the Woolwich raised fixed rates earlier in the week. The rises will add approximately £150 to a typical mortgage. It is feared that other banks will follow suit. The banks are being criticised for profiteering from the disconnect between their mortgage rates and the Bank of England's base rate.
The 4.4 million people whose mortgages track the Bank of England's base rate will received the full cut. Not all of the 1.5 million mortgage holders with variable rate mortgages will benefit from the cut as some banks fail to pass on the reduction.
(Sources: Times Online Telegraph.co.uk Guardian.co.uk Independent.co.uk)
Rate these businesses/organisations:
- Alliance & Leicester (-0.76
) - Britannia Building Society (-4.73
) - Nationwide Building Society (0.33)
- Royal Bank Of Scotland (-1.60)
- Abbey (-1.72)
- The Woolwich (-.--)
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11-Apr-2008 10:10:31
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