Banks and building societies taking £1 billion from tracker fund mortgages
While the UK banking sector claims it is unable to pass on substantial cost savings to customers as yet, it has been revealed that in total the mortgage tracker sector is making in excess of £1 billion a year. This is the option which is supposed to track the UK interest rate but as we have seen over the last few weeks many of these agreements include limits on how far interest rates can fall and seem slanted to the benefit of the lender.
The publication of the £1 billion profit claim is sure to cause some controversy and embarrassment in the financial sector at a time when the banks are pleading hard up. The decision to plough tens of billions of pounds of taxpayers money into the sector is now attracting substantial criticism from many areas of society. Many people believe that the banking sector will never be the same again as the government continues to threaten further regulatory monitoring and laws to ensure customers are looked after and respected.
In many ways the era of self-regulation is dead and this is something which the UK financial sector could regret for sometime.
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