Lenders cut rates on a selection of fixed-rate mortgages following Bank Rate rise
High street banks should not pass on higher fixed rates to mortgage borrowers, Bank of England Governor Andrew Bailey has warned, despite the central bank raising rates at its fastest level in three decades.
Mr Bailey said although the Bank Rate had risen by 0.75 percentage points to 3pc this “should not lead to higher mortgage rates” for consumers.
He added: “Actually I think there is a downside to mortgage rates.”
Although variable-rate mortgages, which are generally pegged to the Bank Rate, will rise immediately, early signs suggested that banks would not raise prices on fixed-rate deals, despite the largest interest rate rise since Black Wednesday in 1992. No lenders announced fixed-rate rises in the immediate aftermath of the Bank’s decision, brokers said.