Recent increases in mortgage rates by banks

[redstar]

Anyone notice that the banks are increasing mortgage interest rates even though the European central banks rate has not risen ?

I've seen at least two notices in the papers from banks increasing their variable mortgage rates.

Are mortgage holders now being penalised for the debt crisis ? Are the banks trying to reclaim some of their lost margins when rates fell over the past few years ?

 

[rmelly]

I thought it was because cost of borrowing for the Banks is more now?

Tracker rates for new customers have gone up also.

 

[Dowee]

Bank's funding costs increased substantially in the last few months of '07. If the cost of the bank's funding their loans increases than it is only natural that that will be passed onto customers, otherwise it would be costing them money to lend to customers.

Variable mortgage rates can go up or down irrespective of moves in the ECB rate, it is only trackers which are guaranteed to move in line with the the ECB rate moves.