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Mortgage rates rise despite interest rate cut
11 April 2008
Two of the country's biggest lenders will push their mortgage rates up today, despite the Bank of England cutting interest rates to five per cent yesterday.
Both Alliance and Leicester and Nationwide have revealed they will be increasing the price on their products in an economic climate which is already seeing homeowners struggle.
Property experts have criticised the move by the banks, accusing them of cashing in on the credit crunch.
Many are also calling on the Bank's Monetary Policy Committee to slash rates further later in the year – with some analysts claiming they could be lowered to as much as 3.5 per cent in 2009.
Yesterday, the National Association of Estate Agent welcomed the Bank's decision, with chief executive Peter Bolton King saying it "will help restore much needed confidence back into the market".
He added: "However, moving forward, it is now more critical than ever that mortgage lenders adopt a similar approach and lower mortgage rates in line with today's drop."
