How will this effect savings rates?

earlgrey_3

First Direct has temporarily stopped offering any of its mortgages to people who are not already its customers. "Rather than increase interest rates dramatically to discourage new applications, we've decided to withdraw temporarily from offering mortgages to non-customers until we've cleared the backlog." The problem being the high cost of interbank funds. http://news.bbc.co.uk/1/hi/business/7325692.stm

Will the providers continue to turn away business or will the competition for retail savings substantially increase regardless of the base rate?

ixwood

It has nothing to do with funding, just too many customers.

not a bad problem to have i suppose.

bristolleedsfan

ixwood wrote: »

It has nothing to do with funding, just too many customers.

not a bad problem to have i suppose.

Its all about funding and morgage providers running scared of bad debtors

As more Morgage Providers remove/restrict products other morgage providers have become swamped so they then remove/restrict products.