Friday, 2 December 2011

Mortgage rates set to rise

"To maintain profit margins, banks may try to pass on the increase in borrowing costs in their lending rates."

"[Experience from the last financial crisis] suggests it may be during 2012 that any significant increase in banks' lending rates occurs."

Mervyn King,  December 1, 2011

So, 2012 will be another great year for the UK housing market.

1 comment:

Anonymous said...

"How much do banks charge for Mortgages?"

"As much as they can."

I find it touching, that people think banks charge on a cost+ basis, like they're some sort of charity. They're already charging as much as they can. They will attempt to hike their standard rates because *any* change gives emboldens them to do so.

Then they drop them again as the business disappears out the door.

If the Government ever gets to a balanced budget again, then the banks will have to go back to lending to actual people again. Rates will drop far lower in that circumstance as they will need the volume.