Rate shift yet to hit loans

15th December 2017

Analysis by Moneyfacts shows that mortgage costs have barely moved following the Bank of England’s base rate rise, with interest costs at roughly the same rate they were a year ago. While November saw the base rate climb from 0.25% to 0.5%, the average two-year fixed mortgage has only risen from 2.31% before the shift to 2.34% since. On standard variable rate activity, Charlotte Nelson of Moneyfacts said: “Just 56% of providers have passed on a rise to their SVR, with seven of them choosing to increase their rates by less than the 0.25%, which has caused the average SVR to rise more modestly.”

The Daily Telegraph (11/12/2017)