Banks raise mortgages but dodge savings hike

Martin Lewis says it is possible to get a mortgage at age 55

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A number of lenders hiked home loan rates following Chancellor Rishi Sunak’s Budget on Wednesday, adding hundreds of pounds a year to household costs for millions of people. But they have failed to pass on higher rates to savers. Tory MP for Wycombe Steve Baker said: “For over a decade, savers have suffered the misery of ultra-low rates and yet at the drop of a hat, mortgage rates are rising.

“It’s time to end the injustice of making it practically impossible to save, especially for the young who need to build a deposit.” Barclays, HSBC, NatWest and TSB announced mortgage rate increases just hours after the Budget.

Consumer expert Scott Dixon said this is “yet another unwelcome hit” on household budgets as winter approaches. He said: “Banks have clearly seen this as an opportunity to capitalise.

“This is nothing short of exploiting those with mortgages at the worst possible time.”

Mr Dixon said soaring energy bills, fuel and food prices will be weighing heavily on people’s minds. He added: “We have got used to historically low interest rates, although it appears that is coming to an end.”

Inflation could pressure the Bank of England to raise interest rates on Thursday from 0.1 percent, which would also raise mortgages.

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