Mortgage experts were taken by surprise this week high-street bank Barclays opted to increase its mortgage rates on the same day as reductions were announced by TSB.
The price changes came soon after inflation fell to 2.3%, which brings it closer to the Bank of England’s target level but was higher than economists had expected, taking a June interest rate cut off the table. The figures most closely watched by the Bank’s rate-setting Monetary Policy Committee - core inflation and services inflation - were little changed and well above the levels that the Bank hopes for.
