Base rate ‘affecting rates on mortgages’
The recent decision by the Bank of England's monetary policy committee to slash the base rate of interest has affected the rates on mortgages, according to Moneyfacts.
However, the financial information provider explained that not all lenders were behaving the same way.
For example, 38 per cent have decided to reduce their SVR; however five of these have cut this rate by less than 0.25 per cent.
Additionally, Moneyfacts points out that a surprisingly high number of lenders are offering products that carry rates higher than their SVR.
"Today 21 lenders offer at least one full status residential product higher than their SVR, including three of the top ten lenders," it said.
The firm also found that the number of mortgage products available is decreasing, from 7,931 at the beginning of the year to the 3,906 currently on offer.
Recently, Moneyfacts published research suggesting that the market for personal loans had also been affected by the credit crunch.
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