Tempers rise with mortgage rates
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The website says this proves the Bank is increasingly toothless in regulating the cost of mortgages.
This led Louise Cuming, head of mortgages at Moneysupermarket.com, to claim that lenders are benefiting from the fact that demand for mortgages is outstripping supply.
"As with any market, when supply is limited it causes prices to rise," she told Chatroom. "Despite the government's intention to ease the market borrowers are suffering as providers use sneaky tricks to claw back profit."
So Cuming argues that lenders are increasing their profit margins at the expense of their customers but ironically the Financial Services Authority might disagree.
From the FSA's point of view, lenders are now pricing properly for risk and repairing their balance sheets, although how that stacks up with Treating Customers Fairly, God only knows.
Source:
Lending Strategy
