• From This is Money:

    It means that for a £150,000 home loan, they are making up to an extra £780 a year on some deals compared with January.

    Meanwhile, the value of funds on the money markets – where banks go to get cash to lend as mortgages – fell to a record low.

    But the biggest gulf is in the cost of tracker mortgages. Banks pay 0.7% for this money, and then lend it to homeowners at 3.84%.

    Ed Stansfield, of researchers Capital Economics, said: ‘There is a desire from lenders to increase their profitability and a desire not to lend.

    The Council of Mortgage Lenders said that a variety of factors influenced the cost of mortgages, not just money market rates.

    Mortgage brokers blamed the high cost of home loans on a lack of competition.

    David Hollingworth, of brokers London & Country, said: ‘There is lots of demand for mortgages but no supply.’…

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    Posted by Jon @ 4:42 am

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