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Tracker mortgage battles
neverdespairgirl
Posts: 16,501 Forumite
A lender has blamed high demand for the decision to raise the cost of tracker mortgages for new borrowers.
The Woolwich said it was now putting its tracker rate back up slightly after having cut the rate on new deals when the Bank rate was cut last week.
It said the influx of requests after the cut had been "unsustainable".
Lloyds TSB, which also runs Cheltenham and Gloucester, is also increasing interest rates on tracker deals, blaming rate increases by competitors.
http://news.bbc.co.uk/1/hi/business/7673606.stm
The Woolwich said it was now putting its tracker rate back up slightly after having cut the rate on new deals when the Bank rate was cut last week.
It said the influx of requests after the cut had been "unsustainable".
Lloyds TSB, which also runs Cheltenham and Gloucester, is also increasing interest rates on tracker deals, blaming rate increases by competitors.
http://news.bbc.co.uk/1/hi/business/7673606.stm
...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.
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Lloyds TSB, which also runs Cheltenham and Gloucester, is also increasing interest rates on tracker deals, blaming rate increases by competitors
I can't think of any other realm of business that blames the competition's price increase for increasing its own price.
In any other industry this would called a cartel. It's just a profit generating exercise0 -
neverdespairgirl wrote: »A lender has blamed high demand for the decision to raise the cost of tracker mortgages for new borrowers.
The Woolwich said it was now putting its tracker rate back up slightly after having cut the rate on new deals when the Bank rate was cut last week.
It said the influx of requests after the cut had been "unsustainable".
Lloyds TSB, which also runs Cheltenham and Gloucester, is also increasing interest rates on tracker deals, blaming rate increases by competitors.
http://news.bbc.co.uk/1/hi/business/7673606.stm
oh my! Now you are going get a lot of stick for posting that. Don't feed the troll! A troll in this forum who claims he is a troll slayer would post something like this:I like debating with people who are hpc but you just post news!
It's house prices not look what I have copied off the BBC forum!
Good Luck!
I posted this yesterday here: http://forums.moneysavingexpert.com/showthread.html?t=12245670 -
formulaone - why would anyone have a problem with this being posted?
do you know why these tracker rates have being raised?
there are a number of potential reasons...0 -
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I have a theory to do with BOE base rates falling, but I am probably wrong. Interested to hear your, probably far better considered, theory Chucky.0
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deals change on a regular basis ( this is aside from the BoE rate changes)- its down to cost and availablility of funds, profit mergins, business levels ( service wise + not wanting to be taking it all on)
There did not see to be as many articles when the base rate margins strted to fall a few weeks agoAny posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.0 -
Interbank Lending Rates
Funds Availability
probably a couple others too...
why probably a far better considered theory?0 -
It looks like a pre-emptive measure to protect margins with big base rate falls coming. On a BoE tracker of less than BoE+1% it could be that the rate you'd pay would be as low as 4% fairly soon and that looks good.18 May 2007 (start of Mortgage):
Coventry Offset Mortgage £220800
Offset Savings: £0
Mortgage Balance: £220,800
14 Jan 08
Coventry Offest Mortgage: 219002
Offset Savings: 28200
Mortage Balance: £190802
And still chucking every spare penny into it!0 -
I've got a +0.69 base rate tracker but I still don;t know if it will be capped from falling too far. I got it ten years ago meaning to jump onto a fix but never did and now I can't find my TandCs! Oh well, I know it goes down to whatever the BOE rate went to a couple of summer ago, 3 point something. The rest will be a mystery until solved! Our great leaders of the world need to drop them first (rates, that is)0
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