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Lenders ignore rate cut
16 January, 2008
Headline rates on the majority of fixed rate products have not budged despite a 0.25 per cent Base Rate cut, moneysupermarket.com has claimed.
The comparison site has reported that the average fixed rate has in fact risen from 7.30 per cent to 7.31 per cent.
Their popularity may well have declined over the past few months but fixed rates still dominate, accounting for seven out of every ten new mortgages taken out.
Borrowers with an excellent credit score are able to access fixed rates at 0.39 per cent less than a month ago, but the bulk of individuals looking for a fixed product are likely to be worse off now than they were back in December.
Louise Cuming, head of mortgages at moneysupermarket.com, said: "Our data shows, on average, unless you are a low-risk borrower, a new fixed-rate mortgage will cost you more. I shudder to think what would have happened to the average fixed-rate mortgage if the Bank of England hadn't cut rates.
"Many homeowners who waited until after the interest rate cut to get a fixed-rate deal will be worse off, much to their annoyance."