"If the Central Bank does actually introduce a cap and forces rates down, banks will simply recoup the money elsewhere - from other kinds of customers.
Banks are already squeezing outside the mortgage business. Has anyone tried to get a personal loan for home renovation, car, or similar?
The APR for those is between 7.5% and 11.5% or thereabouts, whilst you can get half of those rates on the continent.
Not that I am advocating to take on debt, but those rates are pretty much just saying "we do not want to lend you money".
...Maybe its no harm rates are higher than on Continent as it may protect us from our own stupidity?
Criticize the content. Come up with a better way to stop the lenders fleecing the borrowers. Or, if you think it's ok for banks to fleece borrowers, come straight out and say so.
But this is not a reason not to introduce the bill. SVR customers dont deserved to be fleeced any more than SMB customers do. The banks need to come up with a fair pricing model that reflects the services they provide, not targetting particular groups of customers"If the Central Bank does actually introduce a cap and forces rates down, banks will simply recoup the money elsewhere - from other kinds of customers.
or maybe we have proper risk profiling done and interest rates to reflect this - so the higher the risk the higher the rate !Maybe its no harm rates are higher than on Continent as it may protect us from our own stupidity?
The central bank is being undermined, the structures meant to protect us from undue economic exuberance are seen as obstacles to what we want. The first steps always look reasonable.
and where were they all before this ?Who will be the next lobby group?
And would it be such a bad thing, if the entire banking base were asked to fund the profits of the lenders, rather than just the 300,000 non-tracker mortgage holders?
So this would mean either one of two thingsOne way or another, we are all, directly or indirectly, paying for the lack of competition in our banking sector.
So this would mean either one of two things
(a) banks are making massive profits at our expense
(b) their cost base is too large for the size of the operations
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