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MSE News: Eurozone crisis could push mortgage rates up

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This is the discussion thread for the following MSE News Story:
"Banks pay more to fund home loans which could mean higher costs for mortgage holders ..."
"Banks pay more to fund home loans which could mean higher costs for mortgage holders ..."
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Even with these coming mortgage rate rises they will still be low on a historic basis. I just hope they bump interest rates for savers who have been the true loosers this last 4 years.
Save our Savers
If my recollection is correct this makes me wonder why RBS would have a reason to use increased borrowing costs as a reason to raise rates.
I've been saving for the last 4 years at very decent rates of return. You haven't been investing in cash have you brit? Because that would be silly. Someone as financially astute and aware of risk as you will have an incredibly diverse portfolio.
It's nice of you to think of the ordinary man saving his £50 a month but I'm pretty sure he's just happy to have his money. Unlike you or I, I don't think he wants to think too much about it. He just wants to know his £50 is safe which is fair enough in the deepest recession of our lifetimes.
Lol good luck
Just a thought but if that sentiment is repeated throughout the mortgage industry then it bodes well for savers down the line if only the BoE could be relied on to constrain inflation. Little hope of that with QE working its way through the system.
I don't think the UK has a fraction prescribed as such, but it has other requirements for banking liquidity that can effectively enforce one and there is supposedly a practise of voluntary reserve fraction ... the list on wikipedia has reserve fractions from 0% to 30% in various other countries.