There's a simple fact behind the seeming anomaly of #mortgage rates going down (albeit remaining above what they were last year) & the likely continuance of #interestrates rises from the BoE.
If you are a mortgage provider you need to lend money to make money; if your prospective customers don't feel they can afford a mortgage then you either try to screw more money out of your existing borrowers or (because this is tough with so many fixed deals), you reduce your prices!
I don't understand the way mortgages work in the UK. My colleagues in France get fixed rate mortgages (if they want one) for the entire lifetime of the loan! A colleague remortgaged in around 2014 as his current loan was at well about the then current rates and he was offered the new load at 1.15% over 22 years fixed rate for the whole period.
If the French banks can do that, why cannot the British banks do the same?
Because they are crooked venal bastards? No, couldn't be that, surely!
@Paulos_the_fog Fixed is common in the US and Japan too!
@faiz @Paulos_the_fog But Canada has mainly mortgages with rates that adjust every few years similar to the UK.
@Paulos_the_fog @ChrisMayLA6 the banks have set their own rules to trade by. They are held to those rules by the ombudsman. These rules are set by the banks for the banks benefit only.
Tell me where the consumer fits in that system.
Yeah, that's right, as a captive cash cow to be milked.
Fuck the banks, in looking forward to the day the capitalist system collapses taking them with it because while maths can be infinite, the planet isn't.
#degrowth #capitalism #debanking #financeScum