The UK mortgages rate- has fallen to an historic low as the Bank of England tries to help the economy and kick start the housing market.
Lenders increase their profit margin – before the credit crunch the banks the lenders added 2pts (2%) to the bank of England (BOE) base rate. Despite the BOE throwing billions at the lenders in the vain attempt to stimulate mortgage lending the banks seize on this as an opportunity to increase their profits and profit margin to 3pts over base.
Greedy lenders - have taken advantage once again by not passing on the mortgages rate the government would like to see.
Irresponsible lending – The mortgage regulator, Financial Services Authority (FSA) stood back and watched UK mortgage lenders gamble with our money in the housing market. A blind man could see the lenders were lending irresponsibly but apparently not the FSA or for that matter the lender’s themselves.
Not enough - The Government can cite the rest of the world in recession as a reason that the global economy is the reason the UK is suffering. The truth is the government failed to act to avoid the 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 USA much the same will follow here in the UK. So when the sub-prime housing market started to collapse in the USA why didn’t the mortgages rate experts take action?
Who’s to blame? – You can only blame the decision makers at the mortgages rate lenders. Most of these chief executives were rewarded with massive pay offs and even bigger pensions. Start rewarding failures as the norm is a recipe for disaster.
The losers – The tax payers are the real losers even though the mortgages rate is at an all time low the lenders are not lending so borrowers can not get their hands on any of the money. The tax payer will pick up the tab for the incompetence of the mortgages rate lenders’ decision makers. They are the ones who are accountable for the mortgage industry money.
And the winners are – Clearly at this stage there are no winners. Everyone is a loser I’m sad to say as no one likes to be tagged a loser. Roll on the days when we return to economic stability and when low mortgages rate mean something positive.
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MortgageWatchdog.co.uk
