In the last few months, lenders have reduced mortgage rates but savers are losing out as providers cut the savings rates which they offer.
Up to November 2009, demand for savers’ money boosted the rates, but since then, savings rates have been falling and are now back to the levels seen last summer.
Michelle Slade, spokesperson at Moneyfacts, commented that as competition has slowly returned to the mortgage market with LTVs and product numbers increasing and rates falling, the focus appears to have switched back to lending
He said: “Providers must strike the right balance between savers and borrowers in order to maintain their balance sheets. No provider will offer market leading deals to both at the same time. Many savers have just experienced their worst ever year’s returns and 2010 is not shaping up to be much better.”
