Mortgage Lenders Not Dropping Rates?!
It has come to light that first time buyers and people who have recently remortgaged are still being charged up to and above 6% interest despite the recent base rate drops. That is now 3 times the official Bank of England interest rate!
The vast majority of deals reflecting the base rate changes require a minimum deposit of 25% of the purchase price, leaving the majority of borrowers outwith this criteria and therefore faced with mortgages at 6% or higher. If the lenders don’t loosen these restrictions and create better deals for first time buyers and those coming to the end of remortgage terms, the housing market will not recover.
Gordon Brown has acknowledged this problem by stating:
“I think banks should really pass on the interest rate cut. We are talking to the banks. Remember last time there was a cut, we had to speak to them before it was passed on and we will be speaking to them again.”
It has been announced that Halifax and Nationwide will only be passing on a fraction of the cut.
Read more…
Gordon Brown promises to push banks on interest rate cut - Telegraph.co.uk
Mortgage rate rip-off: banks stand accused - thisismoney.co.uk
Rate cuts alone cannot help mortgage market - AMI - ifaonline.co.uk
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