British banks defied the efforts of the Treasury and the Bank of England to get them to ease the burden on households, by raising their interest rates on mortgage loans after the Bank lowered the official borrowing rate of the country.
Data collected by the Bank show that interest rates offered by UK banks to those looking for variable rate mortgages have been lifted, rather than falling into the same vein as the Monetary Policy Committee. official rate.
This means that for many customers, the cost of borrowing has actually gone up rather than falling, despite the Bank and Financial Conduct Authority urging banks to pass on the reductions.
The Bank lowered its official interest rate from 0.75% to 0.1% last month – the lowest level in UK history.
She said she has put in place various programs, including her term financing program, to ensure that banks pass these reductions on to customers.
However, Sky News analysis based on BoE data may reveal that, although the banks subsequently lowered interest rates offered to savers, they did raise interest rates on many mortgage products keys, including variable rate mortgages which generally mask the official rate.
Of the 13 types of mortgages – from fixed rates to variable rates and trackers – only five, less than half of the categories, had been reduced as a result of the Bank’s interest rate cuts.
Five, including two-year floating rate mortgages for clients with 75% and 90% loans, were in fact lifted after the official rate cut.
The other three mortgage rates remained the same.
The figures do not reflect the fact that many banks and mortgage lenders have also stopped offering follow-on mortgages, which shade the bank rates closer.
A spokesperson for the UK Finance banking lobby group said, “The price is a business decision for sole proprietorships.
“The rates offered by lenders are not directly linked to the base rate of the Bank of England and depend on a number of factors, including the lender’s financing and operating costs and the provision for any losses during the term of the loan. “