Government Mortgage Rates
UK Mortgages Rate Winners & losers, who are you?
The British mortgage-rate has fallen to historically low as Bank of England tries to help the economy and jumpstart the housing market.
Lenders increase their profit margins – before the credit crunch banks are the lenders added 2pts (2%) to the Bank of England (BOE) base rate. Despite the BOE throw billions of lenders in the vain attempt to stimulate mortgage banks seize on this as an opportunity to increase their earnings and operating margins to 3pts above the base.
Greedy lenders – have taken advantage again by not passing on rate mortgages the government would like see.
Irresponsible lending – the mortgage regulator, the Financial Services Authority (FSA) stood back and watched the UK mortgage lenders gamble with our money housing market. A blind man could see lenders were lending irresponsibly, but apparently not FSA or for that matter, the lender itself.
Not enough – Government can quote the rest of the world into recession as a reason for the global economy is the reason Britain is suffering. The truth is that the government has failed to act to avoid it mess we are now in with not enough action when it was needed.
What happens in the USA – We have all known for years that whatever happens, good or bad in the U.S. pretty much the same will follow here in the UK. So when the subprime housing market began to collapse in the U.S., why not the mortgages rate experts take action?
Who is to blame? – You can only blame the makers of mortgage rate lenders. Most of these CEOs were rewarded with massive pay offs and even bigger pensions. Start rewarding failures as the norm is a recipe for disaster.
The losers – the taxpayers are the real losers, even though mortgage rate an all time low the lenders are not lending, so borrowers can not get their hands on any of the money. Taxpayers will pick up the tab for the incompetence of mortgages rate lenders' decision makers. They are the ones responsible for the mortgage industry money.
And the winners are – of course at this point there are no winners. All is a loser I am sorry to say that nobody likes to be tagged as a loser. Roll on the days when we return to economic stability and, when low mortgage rate means something positive.
About the Author
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