Product - % above Libor October 2008 - % above Libor May 2009
Average lowest rate tracker mortgage - 0.22% - 1.99%
Average two year fixed rate mortgage - 0.33% - 2.20%
Average three year fixed rate mortgage - 0.16% - 2.78%
Louise Cuming, head of mortgages at moneysupermarket.com, said:" In the last few weeks we have seen the margin between average mortgage rates and the Libor rate gradually creep up, despite the static Bank of England Base Rate. Lenders are benefitting from the fact that demand for mortgages outstrips the supply of mortgage deals and, as with any market, when supply is limited it causes prices to rise. Despite the Government's best intentions to ease the mortgage market, borrowers are still suffering as providers use every sneaky trick in the book to claw back profit."
