Well Done Derby Bilding Society

baby_boomer

It's impossible to raise mortgage finance from Libor these days (rates are way, way above BofE rates) so the BSs may tempt us with a few offerings to step into the lending shoes that the likes of Northern Rock have had to vacate.

But don't expect much in the way of 2 or 3 year fixed rate offerings, because the BSs can't be sure if the Libor situation (and the abililty of banks to securitise mortgages) will revert to normal within a few months.

Rafter

Wierd. How can they be offering 6.8% plus to savers at the same time as offering less than 6% on mortgages?

They must be assuming that a lot of savings customers will stick around next year when they slash rates?

R.

bristolleedsfan

Rafter wrote: »

Wierd. How can they be offering 6.8% plus to savers at the same time as offering less than 6% on mortgages?

They must be assuming that a lot of savings customers will stick around next year when they slash rates?

R.

not all savers are being offered 6.8% many are in low paying instant access branch accounts so they robbing "peter" to pay "paul".

YorkshireBoy

Rafter wrote: »

Wierd. How can they be offering 6.8% plus to savers at the same time as offering less than 6% on mortgages?

They're all increasing the 'arrangement' fees to cover some of the shortfall. Many now have 4-figure fees on not so great mortgage deals.

Then again, maybe they're doing it for cashflow reasons, and they'll worry about the effect on profits later?