There has been much press recently over the massive margins lenders are enjoying and how banks are not lending in the way that they tell us they are. Quelle surprise.
I think it’s time banks gave us something back in the same way that we were there for them in their time of need.
As I write this, gilt prices continue to soar and five-year swap rates are probably dipping below the 2% mark for the first time ever.
So why don’t all the banks release a 2.99% five-year fixed up to 75% LTV with a reasonable feef or purchase and remortgages?
They can afford it under current rates and I’m sure businesses would love to see consumers feeling secure in their outgoings in the medium term. It would help the broker market and provide a stable platform for the housing market and the economy.
So why won’t it happen? The usual excuses will be trotted out, but the real reason is that all lenders feelthey don’t have to.
Well, I think theyneed toand the rest of country does as well. Swap rates have come down a lot in recent weeks, but mortgage rates haven’t changed. Lenders can afford it so why don’t they feel the need to help the economy?
I would like to challenge all lenders to do the right thing and give the market what it needs for once. I’m obviously not going to hold my breath though.