Today RBS-NatWest announced a mortgage rate increase from 3.75% to 4% and Halifax from 3.5% to 3.99%. Despite the Bank of England base rate at just 0.5%.
Mortgage Advisers at Gecko Wealth in Beverley say it’s the fear factor in markets that drives up borrowing costs – even when the UK base rate remains at an all-time low.
Simon Riley explains:
“The Bank of England base rate has remained at 0.5 per cent for nearly three years in an effort to reduce the cost of borrowing for individuals and businesses. The banks however, borrow from one another to have enough to loan out. The interest rates paid by the banks are very much affected by the fear factor in the financial markets.”
“Even though the Big four banks have made over £10Billion profits they question each other’s reliability and this has pushed their own borrowing rates from 0.75% to 1.08%. Now, they say they cannot continue to absorb this increase and are passing it on to the customer.”
“It’s not all bad news however, as there are still good mortgage rates to be found and any good chartered financial planner, such as Gecko Wealth will be able to advise home-owners during this stressful time.”
For further information please call Gecko Wealth on 01482 678519 or visit www.geckowealth.com
