Economics
Bank of England Rate Cuts Aren’t Lowering Mortgage Costs
- Benchmark interest rate has been at record low for months
- Lenders tighten access to credit and hike mortgage rates
Terrace housing in Darwin, Greater Manchester, U.K.
Photographer: Ian Hodgson/BloombergThis article is for subscribers only.
U.K. home buyers returning to the market after the coronavirus lockdown are finding they’re not benefiting from record-low central bank interest rates.
Five months after the Bank of England slashed its benchmark to 0.1%, mortgage rates have barely changed as banks fret about risks. For people with smaller deposits, average borrowing costs actually increased by more than half a percentage point between February and July.