Banks accused of ‘mortgage rip-off’

Banks have been accused of exploiting homebuyers by making the highest profits on mortgages for more than 20 years. Despite the Bank of England’s rate being maintained at an historic low of just 0.5 per cent, borrowers can expect to pay up to 8 per cent on some fixed rates, with many lenders increasing interest on deals even as their own costs fall. Politicians and mortgage experts condemned the rises at a time when 1,000 families a week are being evicted from their homes, saying banks were ‘stoking up problems for the future’ amid predictions of a rise in repossessions.