Triple profits for mortgage lenders
Thu, 10 Sep 2009
According to reports from Mortgage News, banks and building societies have almost tripled their profits on some of their mortgage products. Many lenders have also been criticized for not passing on the reductions in the bank of England base rate, currently at a historical low of 0.5%.
Mortgage products are currently less competitive than at the peak of the ‘credit-crunch’ with many home owners having to pay thousands of pounds extra a year. Lenders have received criticism from the government and consumers, as lending becomes more restricted and expensive in the wake of the tax payer funded bail out.
Some economic experts have questioned the effects of higher lending costs on the speed of the housing markets recovery.