Lenders to Raise Mortgage Rate
Three of the beggest mortgage lenders in the UK have raised their mortgage rates. Never reticent in passing on losses to customers the ‘big three’ have increased their rates by around 0.35%, adding around £600 per year to the average UK mortgage. Where the ‘big boys’ go the others will follow.
This comes in the same day as it was announced that reprieved lender Northern Rock were withdrawing many of their products including: Silver Savings, Silver Savings 30, Business Reserve and all Fixed Rate Bonds. As with the last announcement other lenders will follow suit and withdraw many of their services and products. Only last year I opened an attractive bank account with Abbey giving 6%, seems like a waste of time now!
As mentioned in a previous blog, the people who I feel really sorry for are the the ones who took out mortgage products or exorbitant loans and now find those products withdrawn and either having to sell up (at a loss) or forfeit their home.
I also hear that the government have decided to raise the guaranteed savings value from £35,000 to £50,000 which seems correct. This will deter people from rushing to withdraw their savings at the first sign of trouble, along with the media hype this is one of the reasons why we are in this situation. Any sign of trouble we rush to withdraw savings even thought they are guaranteed, this was the worst financial storm in 18 years and no UK major institutions went down.
If you are withdrawing all your savings to pump them into The Bank Of Ireland expect a lenghty wait!
In other news the US senate is set to approve $700 plans to backup stateside finance after a long fight.
I heard that Vladimir Putin (Russian PM) had joined the criticism of the US, how times have changed! It was only 20 years since the USSR crumbled and now they are telling everyone else how to run their country…I would still rather live in the US! The Russians have waited 20 years for that little dig.