press release

Richard Brown, chief executive of financial data comparison site Moneynet.co.uk said that today’s quarter per cent rise will put a further squeeze on homebuyers and with many borrowers on fixed rate deals still feeling the impact of the previous increases, he hopes that it’s not a step too far.

“The millions of borrowers who are about to see their fixed rates ending this year will be in for a shock when they see their new repayments and for those who are then tied into variable rates with hefty penalties to move this further increase could prove to be the final straw.

“On the other hand this increase is good news for savers providing the banks and building societies choose to pass on the full quarter percent rise to their customers. However, looking back at previous increases it seems unlikely that most will pass on the full benefit to their account holders, preferring instead to increase their margins and profits,” said Brown.

* BBA/BSA data, April 2007