Mortgage costs have hardly moved in the month since the Bank of England raised its base rate, and interest costs are almost exactly where they were 12 months ago, according to data from Moneyfacts.
Mark Carney and his colleagues at the Bank hiked the rate for the first time in more than a decade in November from 0.25pc to 0.5pc.
But the average two-year fixed mortgage on the market has only gone up from 2.31pc in the days before the rate rise to 2.34pc now, indicating that banks have only passed on part of the increase.
Mortgage rates did climb in the months before the hike as lenders began to anticipate the increase, but even counting from the lowest ebb, rates have only risen by 0.18 percentage points, as opposed to the 0.25 base rate rise.
The standard variable rate (SVR), charged to those customers who are not on a fixed or floating deal, typically moves in line with the base rate.
But even this has risen by an average of only 0.14 percentage points to 4.74pc, Moneyfacts said.
“Just 56pc of providers have passed on a rise to their SVR, with seven of them choosing to increase their rates by less than the 0.25pc, which has caused the average SVR to rise more modestly,” said Charlotte Nelson of Moneyfacts.
I am an independent Mortgage & Protection Broker at Richmond Premier.
Richmond Premier is a firm that is directly authorised by the FCA, independent and have access to…
Post articles and opinions on London Professionals
to attract new clients and referrals. Feature in newsletters.
Join for free today and upload your articles for new contacts to read and enquire further.
