Halifax, Nationwide, Abbey about to cut fixed rates by 2%...

LizEstelle

This is the headline we should be seeing in next week's press if there were any pressure being exerted by HMG on the lenders.

The current level of fixed rates is an absolute scandal and nobody but nobody is doing anything to rein in the profiteering of the lenders.

Even Martin Lewis has told me that he intends to do absolutely nothing to help. He seems to believe the matter is somehow being dealt with.

Those of you who think smugly that you're OK because you're on a BoE tracker at the moment - you're in for a rude shock if your product terminates in the coming period. All you'll be offered is a fixed rate at 5-6%+ and this will mean an enormous increase in your monthly bill. This, when the lenders are paying virtually nothing for the money they're lending you.

It seems to me that more people should be getting angry at all this rubbish about 'low interest rates' when patently they are anything but.

wildbreed100

No chance of the Halifax dropping rates next week. Yesterday they raised their FTB 5 year fix (60%loan) from 5.5% to 5.79.

ManAtHome

So how much do you think they're paying for 5 year cash - 0.5% (BoE rate), 5%+ (current 5 year savings rates) or somewhere in between..?

Woby_Tide

I think the BoE do a sterling job lending every single bank money at the prevailing base rate for an unlimited amount of time. God bless their benefactory role......:rolleyes:

opinions4u

LizEstelle wrote: »

This is the headline we should be seeing in next week's press if there were any pressure being exerted by HMG on the lenders.

Right, so you think banks that are nearly bankrupt should start lending at a loss? That's just silly.

The current level of fixed rates is an absolute scandal and nobody but nobody is doing anything to rein in the profiteering of the lenders.

LBG wrote off over £500m in residential mortgage losses in the first 6 months of the year. Many other mortgage lenders are actually losing money on the whole of their mortgage book. Some lenders have closed their doors to new business becasue their backers cannot see a return to profitability. Please quantify where the profiteering is happening.

Even Martin Lewis has told me that he intends to do absolutely nothing to help. He seems to believe the matter is somehow being dealt with.

Contrary to popular belief, Martin Lewis is a journalist who earns his living from a web site. He is not God.

Those of you who think smugly that you're OK because you're on a BoE tracker at the moment - you're in for a rude shock if your product terminates in the coming period. All you'll be offered is a fixed rate at 5-6%+ and this will mean an enormous increase in your monthly bill.

You mean similar to interest rates 12 months ago then.

This, when the lenders are paying virtually nothing for the money they're lending you.

I have posted this link on numerous occasions. It helps you to understand the cost of raising money. The rates quoted are generic. Some lenders have to pay more. Some lenders can't raise money wholesale at all beyond a 12 month term.

Additionally, have a look at www.moneyfacts.co.uk. Look at the savings rates for longer term fixed rate accounts. 5% is becoming a more common offering for a 5 year term. If they're paying savers 5%, what rate do you think they should they be charging borrowers, taking in to account the risks in lending money?

It seems to me that more people should be getting angry at all this rubbish about 'low interest rates' when patently they are anything but.

And that will achieve what?

wildbreed100 wrote: »

No chance of the Halifax dropping rates next week. Yesterday they raised their FTB 5 year fix (60%loan) from 5.5% to 5.79.

Individual lenders will have their own funding issues, profitability objectives and considerations when it comes to the size of their mortgage book. The message that rate increase sends out is "we don't want more business at the moment". This could be because they are actively managing down their mortgage book and would rather you went to Abbey or Nationwide at 5.58%.