that the BoE “increases [the] base rate to incentivise people to save more as it takes money out of consumption”.A Treasury source said the Government would “encourage savers to explore the full range of products available in the market to find the best rates”.
Santander said: “We take many factors into account when determining the interest rates we offer to savings customers. Base rate is only one factor.”Lloyds referred the In this time, the average two-year fixed rate mortgage has increased to 5.98 per cent for a two-year fixe and 5.56 per cent for a five-year deal.
The average easy access savings rate was 0.2 per cent back in December 2021 but while the base rate has gone up by 4.5 basis points, the typical rate for the same type of product has increased to just 2.32 per cent, according to Moneyfacts. That is still hundreds of pounds below the extra cash they need to find to pay their more expensive mortgages.