Mis-sold Mortgage Claims > Mortgage News
Mortgage rates increase as Bank Base rate remains unchanged
Fri, 14 Jan 2011
Following The Bank of England announcement that the bank base rate (BBR) would remain the same at 0.5 per cent, mortgage rates have been increased by lenders . BBR remains unchanged now since March 2009, however, there are now concerns about lenders who are withdrawing product ranges and increasing rates for new lending.

Specialist lender Platform, the Co-operative Bank’s intermediary mortgage lender is making changes to its entire range with an emphasis on attracting more buy-to-let (BTL) business. The Skipton has withdrawn its 3 and 5 year fixed rates and the Halifax has increased its rates on lower loan to value (LTV) products. It is argued that these increases are due to a higher cost of funding, however, it is widely known that lenders are continuing to control how much they "cherry pick" in order to manage volumes.

There are mixed views amongst industry experts about how long borrowers should wait to remortgage and recommend a move now. Many believe that an increase in the base rate in inevitable to control the rate of inflation. Any increase could lead to higher rates across the whole market and leave thousands of borrowers unable to move lenders staying on high standard variable rates (SVR).
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