It used to be received wisdom that when the Bank of England cut interest rates then the Mortgage Lenders would follow. That is no longer the case. Not only are Lenders failing to pass on rate cuts but in many cases they are actually increasing them. This is particularly so where the loan to value exceeds 25%. All this suggests that Lenders judge that house values are falling and if they have more than 75% at stake themselves then they want a premium for the risk of default. Added to that we have the demise of the “slice and dice” lenders such as Northern Rock which along with the Credit Crunch has restricted the amount of credit available to would be borrowers.