The rate which banks lend to one another fell again this week
The rate which banks lend to one another, the London Inter Bank Offered Rate, fell again this week to ’0.57%’ and with Bank of England interest rates remaining at ’0.5%’, many industry experts are calling on lenders to drop mortgage rates.
Michelle Slade, a spokesman for Moneyfacts, said:
“Lenders are taking, what appears to be an excessive margin for risk from those homeowners that are struggling the most. Falling house prices has dwindled away the equity in their homes and they are being dealt a further blow by having to pay mortgage rates at similar levels to those available two years ago when bank rate was 5.75 per cent.
“Libor and bank rate are at an all time low, but tracker rates, similar to fixed rates have not fallen in line. The margin taken on trackers has moved to an all time high as lenders are concentrate or repairing their balance sheets rather that helping borrowers.”
