Lenders reluctant to reduce fixed rate mortgage costs

This is despite a 30 basis point reduction in the cost of funding on the swap rate market. The margin between the average two year fixed mortgage of 5.18% and the two year swap rate of 2.04% is now the widest margin on record at 3.14%. But, during the last month, only a couple of lenders have reduced rates, including Cheltenham and Gloucester and Nationwide. Other lenders such as Barnsley Building Society and Chelsea Building Society have all increased rates. Michelle Slade, spokesperson for Moneyfacts.co.uk, says margins continue to be increased as lenders look to repair dented ba...