Lenders make record amounts on Fixed Rate Mortgages
Profits made on Fixed Rate Mortgages by UK lenders are hitting record heights as low Bank Of England rates persist and cautious Brits play it safe. The finance industry’s main money maker seemed to be in trouble just a year ago with a dominos game of banks and financial institutions falling into public hands like never before now record profits and unprecedented recovery stats are prompting many consumer watchdogs to question the huge hike in the average rate for fixed mortgages to over 5.1%.
Even the Royal Bank of Scotland which is 70% public owned raised their rate even though the mortgage rate remains lower than ever before. Being immune to market changes comes at a high price for borrowers who have seen the mortgage rate fall in successive months to just 0.5% for the first time.
At some point the government and FSA will have to step in and see that consumers are protected against the finance industry. Bringing the industry back to life after the scare of 2008, and sensible legislation on inter bank lending should be something that benefits the customer…