Tuesday, Jul 28, 2009
Reduced Mortgages..Rising Unemployment = ?
This is Money.: Mortgages £1,800 a year too expensive
Homeowners are paying an average £1,800 a year extra for their mortgages as banks fail to pass on cuts in borrowing rates All the big lenders, including those saved from ruin by the taxpayer, are ramping up loan rates at the expense of families and businesses, a Daily Mail investigation has found.
Bank base rate has plunged to a historic low of 0.5%, but business organisations say their members are going to the wall because they cannot gain access to credit, while homebuyers are struggling to find mortgages and then having to pay over the odds.
Posted by rob @ 10:09 AM (398 views) Add Comment
4 Comments
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1. ketha said...
So a bank, a corporation that profits from money itself, miscalculates risk and nearly goes bust. The goverment bail out the banks but still so in awe (or fear) of them refuse to set any specific terms, (only 'sentiments'). The bank then acts as it's supposed to, for the shareholders by increasing its balance sheet and paying off the goverment, because of reduced competition they can charge what they like and mortgages are still cheap finance in real terms, and probably do represent the ongoing risk of further falls. It's a sick game but ultimately the banks are acting rationally. The goverment did not use the crisis to reframe the moral enviroment of finance, one suspects they hardly believe a change is needed... the elite want the show 'back on the road'. If the public aren't outraged (in a sense that they will force through real change) then they probably never will unless the crisis unwinds a lot further and by that time the sensible voices will be drowned out by panic and scapegoating.
Not the banks fault. Our fault. We reap what we sow.
2. mark wadsworth said...
The main cause of "the hard pressed home-owner" paying "over the odds" is because they overpaid for the house and/or engaged in MEW-ing. Anybody who bought more than five or ten years ago, budgeted sensibly and stuck to repayments without MEWing again should be sitting pretty, even at interest rates of 7%.
3. timmy t said...
What a stupid headline. Mortgages are too expensive... nothing to do with the frickin houses being too expensive I suppose... I bought a Ferrari - a snip at £200K - it was just the loan that I couldn't afford. Tw@ts.
4. tenyearstogetmymoneyback said...
They should add "Savers being underpaid by £1800 a year".
About eight years ago I was having to mange my savings very carefully to avoid
going into the 40% tax bracket. Now most of the savings are in ISAs but even if I took
them out and put them in the highest rated accounts I wouldn't get close.
:- Duncan
A question for any other savers out there. Do you think it is worth leaving savings in a cash ISA
in the hope that rates might pick up, or should I withdraw them and go for a higher interest account ?