13
Nov
Calls for lenders to reduce mortgage rates further
Consumer website Moneyfacts has called on UK lenders to lower their
mortgage rates.
Despite a host of financial institutions - including Abbey, Halifax
and Northern Rock - making moves to reduce the cost of borrowing
for consumers recently, the provider of independent financial
advice believes they should go further.
As the Monetary Policy Committee again decided to hold rates at 0.5
per cent last week - their lowest historical level - Moneyfacts is
putting pressure on lenders to stop increasing borrowing
rates.
While the base rate of interest has not increased since March 2009,
this is not the case in terms of mortgage lending rates, which,
after an initial fall, have begun to creep up again.
Michelle Slade, a spokesperson for Moneyfacts, commented: "While
lenders have made positive steps in reducing rates, more is still
needed to counteract the large increases they made in previous
months."
She added that the rising number of lenders offering higher
loan-to-value products was a positive step for borrowers.
