Mortgage rates below the base rates

[mynamehere]

2 minutes ago, BaldED said:

The relevance is you muppet is lenders are struggling to find lenders. 

Which is a bit more relevant than pulling out yougov shite numbers thinking it's making a point.

 yougov is a market research company setup by that dodgy tory 

They are not going to lend at a loss, are they? Narrow spread maybe

[disenfranchised]

Lending below base rates isn't necessarily lending at a loss due to fractional reserve - for example, if the bank decides it needs to allocate 5 grand in capital for every 100 grand of new mortgage lending at a low LTV, even if the cost of liquidity on the 5k was 10% per annum, that still only comes to 500 quid, whilst interest on 100k @ 3.5% = 3500 quid, so the net interest income is still 3000 quid.

Base rates going up is brilliant for the banks, they will make increasing amounts of additional profit. Watch their annual results.

 

 

[PrincessNutNut]

1 hour ago, disenfranchised said:

Lending below base rates isn't necessarily lending at a loss due to fractional reserve - for example, if the bank decides it needs to allocate 5 grand in capital for every 100 grand of new mortgage lending at a low LTV, even if the cost of liquidity on the 5k was 10% per annum, that still only comes to 500 quid, whilst interest on 100k @ 3.5% = 3500 quid, so the net interest income is still 3000 quid.

That's not how fractional reserves work.