BoE rate low but homeowners face price surge

UK mortgage costs hit an eight-year high at the end of June despite the Bank of England's key rate remaining at 5%, its lowest level for more than two years.

The Bank's data on the average interest charge of four fixed-rate mortgage deals showed that costs for homeowners are now at their highest levels since 2000, when the Bank's benchmark rate stood at 6%.

Costs for five-year fixed rate deals with a loan-to-vale ratio of 95% rose from at the end of May 6.98% to 7.15%, their highest level sin