Mortgage Cost Hike As Interest Rates Are Cut

Banks hiked the cost of mortgages last month despite interest rates falling to a fresh record low. The Bank of England cut rates from 0.5 per cent to 0.25 per cent in August, and many mortgage deals became cheaper as a result. But figures published yesterday show the average rate on new popular two year tracker mortgages has crept back above two per cent, from 1.94 per cent just over a month ago. It means these households taking out these mortgages today are no better off than if they took out a deal before the cut in base rates. This is partly because banks rushed to increase their rates before the Bank of England decision in an effort to protect their profits. Read more on the Daily Mail website.