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Coronavirus: Lenders raise interest rates on mortgages

Britain's banks have defied the Treasury and Bank of England's efforts to get them to lessen the burden on households, raising their interest rates on mortgages after the Bank cut the country's official borrowing rate.

Data collected by the Bank shows that the interest rates offered by UK banks to those seeking variable rate mortgages have been lifted, rather than falling in lockstep with the Monetary Policy Committee's official rate.

It means that for many customers the cost of borrowing has actually risen instead of falling, despite the Bank and Financial Conduct Authority urging banks to pass on the cuts.

The Bank cut its official interest rate from 0.75% to 0.1% last month - the lowest level in UK history.

It said that it had various schemes in operation including its Term Funding Scheme, to ensure banks passed those cuts on to customers.

Analysis by Sky News shows banks have hiked interest rates on many key mortgage products even as the BoE rate has been slashed.