Commenting on the convergence of Libor and the Base Rate, Hannah-Mercedes Skenfield, mortgage spokesperson at moneysupermarket.com, said; "This might just mean the market is returning to pre-crunch conditions, and we could even see Libor fall below the Base Rate in the near future - meaning inter-bank lending will be cheaper than the official lending rate which the Bank of England offers to the market. Theoretically consumers should reap the benefits of reduced mortgage rates.
"However, there is still no evidence of rate cuts being fed through to the consumer. Banks can no longer hide behind higher Libor rates as an excuse for keeping mortgage rates artificially high, but I fear consumers will still be forced to pay through the nose for credit of any kind."
