Campaign to get better rates for our current accounts and mortgages

DCFC79

Wheres the proof OP the banks borrow at 0.5%, why not look for a mortgage of 6.7% then.

opinions4u

I looked at the Facebook page in question.

The bit that grabbed me ...

2 people like this

It's going viral!

meer53

I just read the info on that FB page !! Don't think the OP quite understands what the MSE website is all about. Read this from the OP !

There is a reason why banks in the UK can charge 6.7%-11% interest on loans when they borrow the money from the BoE on a rate of 0.5%. This is because of the extremely low level of competition in the money market. Banks will only compete for new customers and ignore the older customers as they rely on the fact that we humans would rather not look into whether we are getting the best deal. Most rates are around the same but the value we get never used to be this bad.

Now i'm giving my age away here but i can remember having a mortgage when the rate was 15% !! The OP needs to do a bit of historical research before setting up silly campaigns like this and take a look at all the advice available on the forums here.

diable

lordjoesnow wrote: »

Hi, i have recently set up a campaign to try and get the banks to offer us better rates for loans and mortgages by proposing everyone to switch bank accounts. This will then make banks more competitive and offer their existing customers greater deals rather than just competing for newer customers (i.e. the students). Banks borrow from the BoE for 0.5% and lend from 6.7% to 11% here in the UK. This is what pays for for their massive bonuses.

more information can be found on facebook. Just search 'The Great Bank Switch'

I'm looking for any advice for my campaign and some discussion as to whether this can actually work. Thank you.

My mortgage is 3.5% and my loan is 7% I am happy with that as I remember mortgage interest rates at 12 to 14%.

noh

My mortgage is 1.5%.
My savings pay between 3 and 4.7%.
I have no other loans.
I'm happy with that.

meer53

OP, i've been thinking about your plan. Can you explain how you think that by everyone changing banks it will make the banks more competitive ? Why would they then offer existing customers better deals ?

chambta

Sounds like the sort of plan I too would have advocated.

When I was in the 6th form.

Fiddlestick

lordjoesnow wrote: »

Banks borrow from the BoE for 0.5% and lend from 6.7% to 11% here in the UK. This is what pays for for their massive bonuses.

I believe that would in fact be what pays for their premises rent, electricity, water, business rates, staff wages, marketing, IT systems, accountants, auditors, taxes and everything else involved in running a business.

Or is there a bank I've never heard of that somehow does all this for free?

DCFC79

opinions4u wrote: »

I looked at the Facebook page in question.

The bit that grabbed me ...
It's going viral!

yep its going viral at a snail pace

ChiefGrasscutter

Is it just me or are the threads on MSE in the savings/banking area getting more crazy recently.