News

Lenders Ignore Bank Rate Freeze

Two of Britains biggest lenders raised the cost of new mortgages last week - one day after Bank rate was kept on hold for the sixth consecutive month.

Royal Bank of Scotland (RBS), 70 per cent owned by the taxpayer, increased the cost of a new mortgage by up to 0.7 of a percentage point. The move takes some of its five year fixed rate deals from 5.00 per cent to 6.69 per cent increasing the cost of a £200,000 loan by £1,400 a year.