BBA Releases Mortgage Pricing Fact Sheet
Tue, 29 Sep 2009
No-doubt those of you keeping an eye on the latest mortgage news will be aware of a growing public view that banks are profiteering on their mortgage products with rates well above the Bank of England base rate.
In response the British Bankers Association (BBA) has released a new fact sheet with which it hopes to explain the core principals behind mortgage pricing in our current economic climate.
The BBA’s new fact sheet explains how banks costs in the period since late 2007 have risen dramatically and liquidity has reduced, increasing the cost of Bank borrowing. Commensurately borrowers rates have risen.
This new fact sheet echo’s comments made by the Council of Mortgage Lenders earlier this month that commentators give too much value to the base rate when discussing the setting of mortgage interest rates.