Mr Clarke said much of this reduction occurred before the cut in Bank rate in August, which helps show that the central bank rate is only one influence on mortgage pricing.
He said there are many others, including what lenders must pay to raise funds themselves, their funding model, the costs of running their businesses, and their need to earn a margin on their activities.
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Mr Clarke said: “Conditions in funding markets are not static but fundamentally they remain sound, and we expect customers to be able to continue to borrow at attractive rates for the foreseeable future.”
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