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FFL has not affected savings rates it's offical.
grizzly1911
Posts: 9,965 Forumite
No wonder the economy continues to suffer with inept Ministers in the Treasury who don't possess an ounce of common sense.
R4 Moneybox Today 8min in.
http://www.bbc.co.uk/programmes/b01qzj1m
Paul Lewis (PL)raised the impact that FFL for lending was having on savers interest rates. Following the introduction of FFL rates have reduced by around 35%, dropping almost as soon as FFL started in August.
Greg Clark (GC) Treasury Minister was asked to respond. This is the gist of it not a transcription.
PL:Has FFL helped mortgage lending despite only £500m having being drawn down in first three months?
GC:Yes rates have dropped by 1% saving someone with a£200k mortgage £200 p.a Lenders had to pay higher rates to raise funds he said which affected their ability to lend.
Me:Nothing to do with the government forcing them down. Why can’t a treasury minister do simple maths BTW?
PL:Has the introduction of FFL caused savings rate to drop?
GC:No there is no direct connection
Apparently FFL will be available to Lenders until 2018 so low savings rates are a real possibility till then, although GC refuted this. GC said they had protected pensioners by increasing pensions by the highest amount ever to help.
Me:Strange I thought they were compelled to do that due to high inflation and the statutory link to it. It was only the highest as RPI was the high and the old pension was the last highest pension.
Sylvia Waycock (?) (SW) from Moneyfacts then stated that their records showed that rates definitely dropped at the same time as FFL was introduced and that she believed the two were related.
SW also pointed out that Banks and Building Societies historically wanted their new headline savings products to be top in the moneyfacts list. After the introduction of FFL they simply didn’t want to be in it.
:mad::mad::mad::mad:
R4 Moneybox Today 8min in.
http://www.bbc.co.uk/programmes/b01qzj1m
Paul Lewis (PL)raised the impact that FFL for lending was having on savers interest rates. Following the introduction of FFL rates have reduced by around 35%, dropping almost as soon as FFL started in August.
Greg Clark (GC) Treasury Minister was asked to respond. This is the gist of it not a transcription.
PL:Has FFL helped mortgage lending despite only £500m having being drawn down in first three months?
GC:Yes rates have dropped by 1% saving someone with a£200k mortgage £200 p.a Lenders had to pay higher rates to raise funds he said which affected their ability to lend.
Me:Nothing to do with the government forcing them down. Why can’t a treasury minister do simple maths BTW?
PL:Has the introduction of FFL caused savings rate to drop?
GC:No there is no direct connection
Apparently FFL will be available to Lenders until 2018 so low savings rates are a real possibility till then, although GC refuted this. GC said they had protected pensioners by increasing pensions by the highest amount ever to help.
Me:Strange I thought they were compelled to do that due to high inflation and the statutory link to it. It was only the highest as RPI was the high and the old pension was the last highest pension.
Sylvia Waycock (?) (SW) from Moneyfacts then stated that their records showed that rates definitely dropped at the same time as FFL was introduced and that she believed the two were related.
SW also pointed out that Banks and Building Societies historically wanted their new headline savings products to be top in the moneyfacts list. After the introduction of FFL they simply didn’t want to be in it.
:mad::mad::mad::mad:
"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
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Comments
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Wasn't overly impressed with the programme today. Not even piecing together their own facts.PL:Has FFL helped mortgage lending despite only £500m having being drawn down in first three months?(SW) from Moneyfacts then stated that their records showed that rates definitely dropped at the same time as FFL was introduced and that she believed the two were related.
:think:
No mention of QE...........0 -
The BBC's coverage of financial news is just dire.
They have a mixture of folks of the Ed Balls school of economics (Stephanie Flanders) and complete;y financially illiterate people delivering finance news and hey presto, it doesn't work.0 -
Another hypocrite, it wasn't too long ago that the frothing didn't stop over poor Stephanie...The BBC's coverage of financial news is just dire.
They have a mixture of folks of the Ed Balls school of economics (Stephanie Flanders) and complete;y financially illiterate people delivering finance news and hey presto, it doesn't work.
http://forums.moneysavingexpert.com/showpost.php?p=33248135&postcount=1Interesting thoughts as usual from Ms. Flanders
And here's another one.
http://forums.moneysavingexpert.com/showpost.php?p=55020627&postcount=11The BoE has continuously failed on its capacity to forecast.
As Stephanie Flanders said on the radio this morning, they have been bullish with forecasts, but King has been extremely bearish on press conferences & speeches.
No mention of the squeeze on disposable incomes in Merv's speech so far.
Everyone is a socialist if they don't agree with what's in poor little Wookster's tiny little mind.0 -
The BBC's coverage of financial news is just dire.
They have a mixture of folks of the Ed Balls school of economics (Stephanie Flanders) and complete;y financially illiterate people delivering finance news and hey presto, it doesn't work.
Not to mention that for years their business editor was Robert Peston, son of a Labour Peer.
Anyone (else) ever wonder how and why, during the hottest point of the financial crisis, Robert Peston was announcing huge shareprice-affecting news (ya know, stuff like "Lloyds are taking over Hbos") instead of via the RNS system?0 -
Not to mention that for years their business editor was Robert Peston, son of a Labour Peer.
Anyone (else) ever wonder how and why, during the hottest point of the financial crisis, Robert Peston was announcing huge shareprice-affecting news (ya know, stuff like "Lloyds are taking over Hbos") instead of via the RNS system?
I'm still waiting for the investigation (that apparently will never happen...) into that.0 -
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