Bank profits on mortgages reach record level - #consumers #debt


	Bank profits on mortgages reach record level - #consumers #debt

JICWyllie

8-26-2009 6:27 AM

64 views

tags:

1-debt, 1-interest rates, 1-policy, 2-consequences, 2-increase, 3-forecast, 3-reported, 4-uk

JICWyllie says:

Mortgage rates of 10 per cent or more within the year? Surely, banks see that if the pitch rates too high, then more people will default.

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://www.clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/246d9d75-616b-4b64-98b0-20fcdc06cdd5/A4E47FBF-54B5-422F-AF17-D4C3EE9C71DE/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/6088169/Bank-profits-on-mortgages-reach-record-level.html" href="http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/6088169/Bank-profits-on-mortgages-reach-record-level.html" style="font-size: 11px;">www.telegraph.co.uk</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/6088169/Bank-profits-on-mortgages-reach-record-level.html"><P>
It is the latest evidence of how customers are paying the price of banks' 
  mistakes which led to the global banking crisis. 
</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/6088169/Bank-profits-on-mortgages-reach-record-level.html"><P>
The figures show lenders are continuing to raise their mortgage rates despite 
  their own costs falling and the Bank of England keeping interest rates at an 
  all-time low of just 0.5 per cent. 
</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/6088169/Bank-profits-on-mortgages-reach-record-level.html"><P>
As the British Bankers’ Association disclosed the worst figures for net 
  mortgage lending in nine years, it has led to banks facing growing calls to 
  lower their margins and offer lower borrowing costs to individuals. 
</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/6088169/Bank-profits-on-mortgages-reach-record-level.html">t brings the margin between the cost of bank lending and average fixed rates 
  to 3.14 per cent, the widest since Moneyfacts' records began in 1988.</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/6088169/Bank-profits-on-mortgages-reach-record-level.html"><P>
Experts warned that if action is not taken, mortgage rates would reach 10 per 
  cent within a year once Bank of England interest rates begin to rise. 
</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/6088169/Bank-profits-on-mortgages-reach-record-level.html">separate figures showed a marginal rise in mortgage lending</blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/A4E47FBF-54B5-422F-AF17-D4C3EE9C71DE/blog/" title="blog or email this clip"><img src="http://content8.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>