Banks hold rate rise from savers
GREEDY banks are being slammed for raising mortgage rates after the Bank of England’s August base rate rise – without allowing savers to benefit.
Consumer champion Which? says lenders are unfair as half have raised standard variable mortgage rates by the 0.25% of the base rate increase.
But one in six instant access savings account rates have matched it.
And two-thirds of savings accounts have had no rate rise at all.
With cash ISAs it is just as bad – as one in eight instant-access accounts offers the 0.25% rise. Of 37 providers who raised mortgage rates, seven failed to pass on any benefit to all savers.
Gareth Shaw of Which? said: “We have monitored the last two rate rises and have seen similar unfair practice and double standards on both occasions.
“If some providers are going to raise mortgage rates, they should reward savers at the same time, otherwise their customers are being penalised.”