MPs have accused mortgage lenders of “profiteering” as their rate rises outpace the latest increase by the Bank of England.
Last week the Bank raised the base rate by 0.25 percentage points to 1.25%. Rates are expected to hit 3% later this year.
While this will affect tracker mortgages directly, lenders have been hiking other loans by far higher rates. HSBC increased prices on fixed-rate mortgages this week by between 0.45 and 0.5 percentage points. It said that the rise was not in anticipation of the Bank of England announcement.
Nationwide introduced higher prices on its fixed rates by up to 0.4 percentage points. Halifax also increased its prices by up to 0.1 percentage points. Natwest increased its rates by up to 0.27 percentage points.
Robert Halfon, the Tory MP, said: “The banks that are raking up interest rates above the base rate need to explain themselves. There should be questions asked by the government about whether these banks are effectively profiteering.”
