Mortgage lenders drop base rate trackers after base rate cut
In a move which is sure to anger the government it has been revealed that the Cheltenham & Gloucester has withdrawn many of its more popular mortgage deals in the wake of the Bank of England's half point reduction in interest rates. The move relates to an array of base rate tracker mortgages and seems to fly in the face of assurance given by the government just yesterday.
It has also been revealed that the likes of Nationwide and Abbey are on the verge of taking similar action which will crush the hopes of many first time buyers who had become a little more upbeat after yesterdays events. So why have they withdrawn these packages?
While there is no one main reason why these packages have been withdrawn it seems as though there is still concern about the long term rate of lending in the money markets. Many banks seem happy to withdraw these packages for now and then see how the money markets settle down and whether the enthusiasm of yesterday is followed through.
If the banks in question decide to take up the governments offer of extra financing it has been indicated that they will be expected to pass on savings to mortgage holders and first time buyers, but will they be good to their word?
Share this..
Related stories
Nationwide survey indicates consumer confidence may have bottomed
A survey by the Nationwide has revealed a slight rise in UK consumer confidence with their main index rising from 41 in January to 43 in February. While this rise may seem minuscule when you consider the massive falls over the last few months it is the first rise for four months and there are potentially interesting signs that consumer confidence may receive a short-term fillip.
It...
Royal Bank of Scotland targeted by climate change activist
The Royal Bank of Scotland has again been the target of climate change activists in London with a number breaking through into the company's London office and using superglue to attach themselves to the second floor of the company's head office. This is not the first time Royal Bank of Scotland, seen by many as the evil face of capitalism, has been targeted by climate change activists and it will...
Read MoreChip And Pin Fraud On The Increase
News that police have broken a major crime ring in the Midlands has brought to light a new and frightening trend in the area of fraud. It has been found that fraudsters and criminal gangs are targeting chip and pin machines in a variety of retail outlets - with garages among the more popular. While the police are unsure of the figures involved they believe that significant amounts of money have...
Read MoreUK government turns on the public sector
In a sign of the times, or more likely a fight for votes in the UK, MPs have announced plans to name and shame those who have enormous salaries in the public sector. This is a sector which has ballooned in size under the Labour government but one which is now apparently public enemy number one due to the fact that gold plated pension schemes are still popular and the number of employees within the...
Read MoreIs the devil in the detail of Gordon Brown's new housing rescue?
As soon as Gordon Brown's new rescue package for homeowners had been announced there were questions being asked about the details of the scheme and who exactly would be able to apply for help. Gordon Brown announced that 8 of the 12 major banks in the UK had already signed up to the scheme, although after being questioned later in the day it appears that many of the banks were slightly surprised b...
Read More