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Mortgage rates have increased in recent weeks based on expectations further base rate cuts could be delayed, but many savers have not yet reaped the rewards from higher rates.
The Money blog has accused no fewer than seven high street names of ‘blatant profiteering’ for raising mortgage rates while cutting savings rates
Savings Champion founder Anna Bowes said: “The latest inflation data should mean that the Bank of England will pause again before cutting interest rates – good news for savers but bad news for borrowers.
“However, some providers have made or are planning cuts to their savings rates anyway.”
We have also been made aware of Santander both raising mortgage rates and reducing rates on savings.
Ranald Mitchell, from mortgage brokers Charwin Private Clients, told Money: “It’s a bit naughty!
“While banks and building societies are quick to hike mortgage rates, squeezing homeowners even further, their miserly cuts to savings rates reveal blatant profiteering at the expense of hardworking savers. It’s a shameless double standard that puts corporate greed ahead of customer interests.”
Just two lenders accused of malpractice have responded to the allegations.
A Barclays spokesperson told the press: “We regularly review our product offering and make changes where necessary. We have seen increased volatility in swap rates in recent weeks which is driving an increase in mortgage rates across the market.
“To help our customers make their money work harder, we regularly review and contact our customers if we feel there is a Barclays savings product better suited to their circumstances and encourage them to check our range on our website, which is frequently updated.
“Rainy Day Saver rates reduce on 13 February 2025 from 5.12% AER/5.00% gross p.a. to 4.87% AER/ 4.76% gross p.a. for balances up to £5k but will remain unchanged at 1.16% AER/1.15% gross p.a. for balances over £5k.”
Nationwide said: “Nationwide hasn’t made any cuts to savings rates in response to the most recent Bank Rate decrease. Savings rate reductions made on 1 November of up to 0.20 percentage points related to the August Bank Rate change and were announced at the start of October.
“On the day of the November Bank Rate reduction, we announced we were passing the cut on in full to our Standard Mortgage Rate (SMR) and for existing tracker mortgage customers from 1 December. We have also reduced our new business tracker mortgage rates by 0.25 percentage points.
“We have announced some small increases to our fixed mortgage range to reflect the swap rate environment and rate changes happening across the market.”
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