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.’…