The gap between interest rates and the average standard variable rate mortgage is the largest in 13 years – despite the Bank of England’s drastic attempts to get the banks lending again.

The average interest rate on an SVR mortgage was 6.39% last month according to the Bank’s own data, 52 basis points lower than October but still 339 basis points higher than interest rates, which were reduced to 3% last month after a reduction of 150 basis points.

That is the widest spread since comparable records began in 1995, and compares with a spread of 195 basis points in September.

Daily Telegraph