Who gets the profit from interest base rates?

Question

Ive just realised theres a huge scam right under my nose. My £100,000 house costs me say 6% each year to pay back say if this is the base rate. Now if inflation is say, 2%, Im paying 4% over the odds. Who gets the profit. Is the bank of England actually owned by the government so effectively get the high interest payment? or where do all our interest payments really go?
Ive also wondered why other commercial institutions dont undercut the base rate becase when it goes high because companies could actually still make profit lending at a lower rate?
Its now dawned on me that people who buy houses out right can make a profit, but those with a mortgage are 'forced' with a base rate that is now twice the rate of infation. SO WHERE ARE ALL THESE INTEREST PAYMENTS GOING??? Is the government raking in all the interest?
Ive never thought of this point before but Im begining to realise someone must be getting rich while Im getting poor with my £1000 a month interest payments!

Answer 1

you pay the interest to your lender, so if you have borrowed money then you are out of pocket, but if you have saving then you are in the money. So really the banks don't make that much profit ..... I think if you worked out the amount of outstanding loans = bank makes money, to the amount in savings = bank lose's money. I think the total of course would be in small favour of the bank making profit.

Answer 2

No .

If you are buying a house you are getting the Best Deal of your entire LIFE.

This is too difficult to explain .. go attend a basic Economics Course at evening clases or study Finance at Uni.