December 11, 2008
Benefiting from rate cuts
Story link: Benefiting from rate cuts
This is exactly my point, all that’s happening here is that the Government is basically granting Banks with a lifeline, where they can make extra profits or make the same profits by lending less. This certainly doesn’t help the average mortgage holder, or taxpayer for that matter!
The cost of fixed rate mortgages has fallen by less than half the reduction in the official rate sparking renewed concerns over bank profiteering. The average variable rate deal has also fallen by far less than expected.
The official figures – released by the Bank of England – came as the Government and banks met for the first meeting of the “lending panel”. The panel will discuss ways of improving access to loans in the wake of the global credit crisis as ministers are grow increasingly exasperated with the banks’ behaviour.