More than one month after the Bank of England cut interest rates, nearly 20% of mortgage lenders still haven't cut their variable mortgage rates. Why? Are lenders struggling or are they merely profiting from the tightening market?
A couple of weeks ago it was revealed that one month after the Bank of England cut the base interest rate to 5.5%, 14 lenders - nearly 20% - still had not cut their mortgage interest rates.
As a result, even the Prime Minister stepped in and commented that lenders ought to do the decent thing and cut rates in line with the Bank of England. But is it that simple, and is 2008 set to be a much tougher year for lenders and borrowers?
Difficult Market Conditions
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