UK mortgage lenders playing games again
It has been revealed that the Woolwich, Northern Rock and Abbey have all reduce their mortgage rates in what they are claiming is a return of competition to the sector. Barclays, the parent company of Woolwich, has reduced its rate by 0.45% to 2.79% for tracker mortgages, Northern Rock reduced its two-year tracker by 0.2% to a competitive 2.79% and then we saw Abbey reduce its fixed rate by 0.11% to 3.88%. So are there any catches?
While on the face of it the reduction in UK mortgage rates is very competitive and very interesting, the situation is slightly different when you look at the deposits required. All of the companies in question would require new mortgage customers to lay down a 30% minimum deposit on their new home to be able to discuss the lower rates announced today. This is yet again another letdown to the UK mortgage market with UK banks and UK mortgage providers accused of manipulating customers to increase demand before reducing overall mortgage rates.
Without a reduction in UK mortgage rates there will be no recovery in the UK property market and ultimately it will be a lose-lose situation for financial companies and property owners in the UK. When will UK banks and UK mortgage providers wake up to this fact?
Share this..
Related stories
Appetite for risk returns to the investment markets
A report by Bank of America Merrill Lynch has today confirmed that investors are now regaining an appetite for risk with many investors willing to take more of a chance with their investments in the short to medium term. Despite the fact that the UK, US and other economies around the world are still feeling the after-effects of the credit crunch and the economic downturn it seems that some investo...
Read MoreWho will tackle the public sector pension issue?
As the ordinary UK citizen continues to struggle with an array of living expenses which seem to increase on a regular basis, there are concerns about the widening gap between public sector pensions, corporate pension schemes and individual pension arrangements. Over the last few years we have seen the public sector pension liability, many of which are final salary related, increase dramatically as...
Read MoreSainsbury’s Online Superhighway Grinds To A Halt
In a move which has been more of an embarrassment than a real long term problem, Sainsbury’s has been forced to suspended orders and deliveries from its online delivery service after a serious computer glitch plunged the service into chaos. It seems that the problem first arose on Tuesday evening and ten thousand online shoppers have been left with no deliveries today.
The co...
Firms pessimistic about profitability says CBI
The Confederation of British Industry (CBI) has said that financial services firms expect a "squeeze in profitability" in the next quarter in spite of rising business volumes during the last three months.The Financial Services survey conducted by the CBI and PricewaterhouseCoopers LLP says that business volumes had grown at their fastest rate in seven years adding that employment in the sector was...
Read MoreUnemployment at lowest rate since 2008
17/09/2014 An official report from The Office for National Statistics (ONS) has shown that unemployment rates have fallen to 6.2% over the last three months, its lowest rate since 2008. The number of unemployed people is now 2.02 million, which has fallen by 146,000 over the last three months. Those claiming Jobseeker's Allowance in August fell below one million for the first time in six years...
Read More