Mortgage borrowers late on rate assessment
The Bank of England’s choice to cut interest rates last week was announced. Mortgage lenders are deciding if they will overstep the cut down to borrowers in the form of low-price mortgage rates.
Financial services experts have told millions of mortgage borrowers that they will not see their repayments decrease by 25 percent point in total. The wait in decisions will make banks a lot of money in the long term.
A vast majority of mortgage lenders approved on the cut immediately, however Barclays, Abbey, Natwest and Lloyds TSB are in position to broadcast mortgage rates.
Due to the credit crunch taken place, many banks will try there hardest to recover lost profits. Sue Hannums, a investigator from Sunday Times commented: "Banks have been quietly cutting savings rates over the past few weeks in the hope that we won’t notice when they chop rates again following the latest base-rate move. Add the fact that SVRs are unlikely to come down by the full quarter point, and banks have a great opportunity to boost their margins."
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