Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
S&P Stock Market Trend Forecast to Dec 2024 - 16th Apr 24
No Deposit Bonuses: Boost Your Finances - 16th Apr 24
Global Warming ClImate Change Mega Death Trend - 8th Apr 24
Gold Is Rallying Again, But Silver Could Get REALLY Interesting - 8th Apr 24
Media Elite Belittle Inflation Struggles of Ordinary Americans - 8th Apr 24
Profit from the Roaring AI 2020's Tech Stocks Economic Boom - 8th Apr 24
Stock Market Election Year Five Nights at Freddy's - 7th Apr 24
It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- 7th Apr 24
AI Revolution and NVDA: Why Tough Going May Be Ahead - 7th Apr 24
Hidden cost of US homeownership just saw its biggest spike in 5 years - 7th Apr 24
What Happens To Gold Price If The Fed Doesn’t Cut Rates? - 7th Apr 24
The Fed is becoming increasingly divided on interest rates - 7th Apr 24
The Evils of Paper Money Have no End - 7th Apr 24
Stock Market Presidential Election Cycle Seasonal Trend Analysis - 3rd Apr 24
Stock Market Presidential Election Cycle Seasonal Trend - 2nd Apr 24
Dow Stock Market Annual Percent Change Analysis 2024 - 2nd Apr 24
Bitcoin S&P Pattern - 31st Mar 24
S&P Stock Market Correlating Seasonal Swings - 31st Mar 24
S&P SEASONAL ANALYSIS - 31st Mar 24
Here's a Dirty Little Secret: Federal Reserve Monetary Policy Is Still Loose - 31st Mar 24
Tandem Chairman Paul Pester on Fintech, AI, and the Future of Banking in the UK - 31st Mar 24
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Tax Payer Bailed Out Banks Over Charging on Mortgage Interest Rates

Interest-Rates / Mortgages Mar 08, 2010 - 04:41 AM GMT

By: MoneyFacts

Interest-Rates

Last week saw the one year anniversary of the Bank of England dropping its base rate to the historic low level of 0.50%.

During the last year some of the biggest lenders increased competitiveness, while others appear less willing or able to do so.


The table below shows how some of the UK biggest mortgage lenders’ average two year fixed rate deal has fared against the whole of market average.

While state funded Royal Bank of Scotland performed well, other state funded banks such as Cheltenham and Gloucester, Halifax and Northern Rock have struggled to meet the same grade.

Average two year fixed rate mortgage (75% LTV)

(Highlighted boxes show above market average rates.)

Provider Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10
Cheltenham & Gloucester 4.42% 4.37% 4.35% 4.34% 4.87% 4.84% 4.77% 4.82% 4.76% 4.58% 4.58% 4.58% 4.57%
Halifax 5.48% 4.64% 4.58% 4.49% 4.94% 4.86% 4.77% 4.60% 4.60% 4.51% 4.63% 4.38% 4.27%
HSBC 4.34% 4.27% 4.17% 4.17% 4.02% 4.07% 4.07% 4.07% 4.07% 4.27% 4.27% 4.07% 3.99%
Nationwide BS 4.48% 4.49% 4.49% 4.49% 4.93% 4.93% 4.93% 4.92% 4.73% 4.73% 4.73% 4.73% 4.73%
Northern Rock 4.39% 4.47% 4.42% 4.42% 4.74% 5.04% 5.04% 4.95% 4.59% 4.64% 4.64% 4.44% 4.37%
Royal Bank of Scotland 3.57% 3.57% 3.27% 3.27% 3.79% 3.79% 3.79% 4.04% 4.04% 4.04% 4.04% 4.04% 3.84%
Santander (Abbey) 4.21% 3.96% 3.96% 3.99% 4.47% 4.50% 4.50% 4.49% 4.34% 4.14% 4.14% 4.14% 4.14%
Woolwich from Barclays 4.69% 4.39% 4.09% 3.69% 4.19% 3.99% 4.29% 4.04% 3.84% 4.04% 4.04% 4.04% 4.06%
Whole of market average Rate (75% LTV) 4.30% 4.14% 4.18% 4.38% 4.64% 4.68% 4.66% 4.67% 4.62% 4.42% 4.37% 4.27% 4.19%

NB - Woolwich from Barclays had no 75% LTV deals available prior to December 2009. All figures prior to this date are based on 70% LTV.
Source: Moneyfacts.co.uk - 8.3.10

Michelle Slade, spokesperson for Moneyfacts.co.uk commented:

“The large amount of money that has been pumped into some well known banks is still a sticky point with many British taxpayers.

“Many hoped that the state owned banks would be at the front of the queue for unlocking the mortgage market, but this isn’t the case.

“Some state funded banks appear to place a higher priority on getting out of Government ownership, rather than helping with competitive rates the customers who supported them.

“The notable exception is Royal Bank of Scotland, which currently offers some of the most competitive rates on the market.

“Stricter rules for building societies over funding and capital reserves could go some way to explaining why Nationwide BS also appears to finds itself less able to compete.

“Some lenders still appear more willing than others to lend, and bringing increased competition to the market through more competitive rates.

“In the last year, only a handful of mortgage lenders actively promoted their products in order to increase their share of the market and it is these lenders that have come out well in our survey.

“Unless more lenders become willing to lend, the mortgage market will continue to stagnate.

“The pricing in the mortgage market remains disjointed between the rates on offer and the cost of funding, with each lender taking a widely different view of the margin of risk they are applying to their mortgages.

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in