Comments on: Bastards!

By: Matthew

Matthew — Thu, 07 Feb 2008 12:33:26 +0000

One simple check would be if someone couldl find the ‘average’ savings rate offered by the banks when rates were last 5.5%.

By: Judge

Judge — Thu, 07 Feb 2008 10:39:37 +0000

Another point is that a certain portion of borrowers are on tracker mortgages – the amount they pay falls automatically with BOE rate cuts. If the banks are having to pay higher rates to borrow and are also receiving lower payments from one section of their customers, they have to recoup the difference from those customers who are not on mortgages that track the Bank rate. So variable and fixed rates have risen.

By: Tim Almond

Tim Almond — Thu, 07 Feb 2008 10:03:09 +0000

What do they mean by “average rates”?

Do they mean the advertised rates, the rates of what’s on the books or something else?

For one thing, I’m sure that with all the problems in money markets, the rates at which building societies can borrow money on the markets have gone up.

By: Mark C

Mark C — Thu, 07 Feb 2008 08:51:20 +0000

Lenders have increased the price of risk in their mortgage book, that’s all. Competition had forced them to reduce the price of risk and other margins. Now the margin is being expanded and protected in anticipation of harder times ahead – as forecast by none other than the Economics Editor of the Telegraph, amongst others.

The other thing happening is that the price that, a few months ago, bought say a 90% loan to value, now only buys say 80%, or less.

I’m no fan of banks and lenders generally, but it’s a bit much to assume they’re profiteering, pure and simple.

Though I can see why there are those who might see it that way; lenders haven’t covered themselves in glory over the years. But as you imply, it might be reasonable to expect better from Edmund Conway.