Britain's homeowners face paying an extra £1.3bn a year because mortgage lenders have increased their profit margins to recoup losses from bad debts. Sunday Times
Lenders have increased their margin fourfold over the past year, and consumer groups are accusing 'reckless' banks of 'plundering' homeowners.
Eddy Weatherill, chief executive of the Independent Banking Advisory Service, said: 'They all got into this position and now the customer is going to pay for it.'
The new figures, compiled by Deutsche Bank, analyse the margin between the rate at which a bank or building society borrows money and the fixed-rate deals it offers. In some cases the margin has increased eightfold in a year.