13 Nov

Calls for lenders to reduce mortgage rates further

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.

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