Lenders double margin on mortgages

Lenders have more than doubled the margin they charge on fixed rate mortgages during the past year, but a lack of choice is forcing many borrowers to take out the loans, figures have shown.

Banks and building societies have increased the margins they charge on fixed rate deals from 1.12% above the key two-year swap rate, upon which the loans are based, in December last year, to 2.92% above it now, according to Moneyfacts.co.uk.

Lenders double margin on mortgages