UK Money News
10th January 2008
Lenders 'cannot blindly follow base rate calls'
A decision made by the Bank of England about the base rate today will not be the only factor governing how institutions choose to alter their mortgage rates, one personal finance body has reminded the public.
The Council of Mortgage Lenders (CML) has observed that there are a number of other factors that such institutions must take into account when setting their own rates.
Any cost of funding from savers, levels of margin to be accrued and estimations of how rates may move in the future all feature in lenders' calculations about their rates, the organisation claims.
It adds that the credit crunch has further complicated the help with money that lenders are able to provide when offering mortgages.
"In this complex environment it is incorrect to assume that a base rate reduction will (or should) automatically result in a cut in standard variable rates or discounted rates," a statement from the body argues.
However, it adds that those with tracker mortgages will see their rate automatically change with the base rate, while those on fixed-rate products have the security of knowing what the interest rate on their product will be while its term lasts.
The interest rate currently stands at 5.5 per cent, having fallen a quarter per cent in December.
back to January's Money News
This article and more Latest Money News can be found on MoneyCrocodile.co.uk
Personal Loans from UKPersonalLoans.com
Personal Secured Loans for Homeowners and Personal Tenant Loans for Non-Homeowners. You can apply online for an Any Purpose Loan or Personal Debt Consolidation Loans or use one of our Loan Calculators.
Debt Advice from ReduceDebt.com
Debt problems? Refused a loan? Got CCJ's or Arrears? Get the best advice and help by enquiring online. Our Debt Professionals will help you whatever debt problems you have. Some of the options available to you are Debt Management, Debt Consolidation, Debt Couselling and IVAs,
UK Personal Finance from MoneyCrocodile.co.uk
UK Online Personal Finance site covering: Loans, Mortgages, Credit Cards, Insurance, Debt Advice, Bankings and Savings, Finance Tools and Money Jargon. We also cover Any Purpose Loans, Secured Loans, Personal Loans, Tenant Loans, Car Loans and Debt Consolidation Loans. If you are looking for Personal Finance let Money Crocodile put a smile on your face.
Car Loans from GBCarLoans.com
Don't just accept the dealers finance - get a quote from us before you buy!. UK Car Loans for New Cars or Used Cars: Supermini, Small, Hatchback, Saloon, Estate, MPV, 4x4, Sports, Luxury, Executive, Cabriolet or Classic Car.
Tenant Loans from TenantLoan.com
If you're looking for a low cost tenant loan, then look no further. We aim to find you a highly competitive interest rate and you can borrow anything from £5,000 and £250,000 with up to 25 years to pay.
