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The Mcglashan Answers Hamish Mctavish


The McGlashan
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And how many have customers on trackers with no collar ? These are loss makers for banks. The margin on these will be negative. Which is probably why they are upping their rates and LTV's for many other loans. Covering their losses in the tracker market.

Who knows. One thing is clear though - RISK AVERSION is the name of the game these days.

For every single Bank, even the part/full nationalised ones.

There is another factor bugging mortgage lenders at the moment - low rates for savers.

Here's the CML moaning about it:

http://www.cml.org.uk/cml/media/press/2166

Edited by The McGlashan
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There is another factor bugging mortgage lenders at the moment - low rates for savers.

Here's the CML moaning about it:

http://www.cml.org.uk/cml/media/press/2166

It is quite amazing isn't it ? Even the Banks are finally admitting their previous mistakes. They are trying to clean up their act by only lending to those that they feel safe about. They are wanting to give savers a better deal.

Yet even with all this Broon insists that we should just simply go back to before all this bad stuff happened.

Does he really just not get it, or do you reckon he knows the game is up but is simply being a lying politician ?

I hope for option #2.

Option #1 is frightening.

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There is another factor bugging mortgage lenders at the moment - low rates for savers.

Here's the CML moaning about it:

http://www.cml.org.uk/cml/media/press/2166

Well, thats within their power to change, no-one elses.

In fact I saw a building society representative on telly moaning about it on the day of the release, unfortunately for him, he was standing in front of a window with a poster advertising personal loans at............

.....wait for it........,

......12.9%!!!!!!!!!!!!!!!

Oh how I laughed. :rolleyes:

They are completely ignoring lending at low rates, in fact, most lending is done at higher retail rates now than in 2007, despite the BOE cutting base rates by 5% in the meantime!!!!!!

Credit card rates up. Business loan rates up. Personal loan rates up. Overdraft rates up. High LTV mortgage rates up. Remortgage rates up. Tracker margins up.

In fact the only rates that have declined I can think of are the few short term fixes for low LTV.

And the cheeky beggars have the nerve to blame the BOE base rates for setting low savings rates!!!!!!!!!!

The lenders are the ones ramping up their margins by raising loan rates and cutting savers rates, not the BOE. But I suppose any excuse to pass the buck... ;)

At the end of the day, banks need to make a profit. Savers and borrowers alike will continue to get squeezed until such times as the banks can restore sufficient volume to lending to get those profits.

Low volume = high margins.

High volume = low margins.

With high volume both savers and borrowers benefit. Without it, both will continue to get squeezed.

Edited by HAMISH_MCTAVISH
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eh cos rates represent risk Hamish

who's to say you are not going to be 1 of the £3M and no pay yer money back

whats the point in them getting a small margin for the risk.

more Oil Service's Companies in Aberdeen are increasing the numbers that they indicated before for redundancy.

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