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Moody, Building Societies and mortgage rates?
RufusA
Posts: 939 Forumite
I noticed in the financial news that Moody have downgraded the credit rating of a number of Building Societies which in effect increases their cost of borrowing and possibly removes their eligibility for the Governments special liquidy scheme. This downgrading is based on a new "stress test" that assumes that house prices could fall 40%!
Those worst hit seem to be those building societies that have in the past offered borrowers good deals - i.e. Chelsea BS, Yorkshire BS, Skipton, A&L etc.
Does this mean the end of good long term fixed rate deals (5yrs+) as those BS with poor credit ratings may be struggling to fund them?
Rufus.
Those worst hit seem to be those building societies that have in the past offered borrowers good deals - i.e. Chelsea BS, Yorkshire BS, Skipton, A&L etc.
Does this mean the end of good long term fixed rate deals (5yrs+) as those BS with poor credit ratings may be struggling to fund them?
Rufus.
0
Comments
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A number of BS were involved in subprime lending through subsidiaries. I did a warning thread on this in 2007 in the savings discussion area and was told I was mad.0
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