COST OF LIVING

Mortgage lenders accused of profiteering as interest rates race up

The Bank of England raised the base rate by another 0.25 percentage points to 1.25 per cent yesterday
The Bank of England raised the base rate by another 0.25 percentage points to 1.25 per cent yesterday
CARLOS JASSO/AFP/GETTY IMAGES

MPs have accused mortgage lenders of “profiteering” as interest rate rises outpace an increase in the Bank of England base rate.

The Bank this week raised the base rate by 0.25 percentage points to 1.25 per cent, with rates expected to hit 3 per cent later this year.

The latest rise will affect the 1.9 million borrowers on standard variable rate or tracker mortgages, which move in line with the base rate. HSBC also 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