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Warning over rate rise by
'devious' lenders
Harry Wallop
London
Telegraph
Saturday November 17, 2007
Nearly five million home owners are facing dramatic increases
in their monthly mortgage bill next year, as "devious"
lenders raise their rates despite the Bank of England signalling
that it will cut interest rates.
Experts warned last night that lenders were expected to put up
rates on mortgage deals over the next couple of months, in an
attempt to preserve their profit margins by creaming more money
from borrowers ahead of any interest rate cut by the Bank.
Julia Harris, the mortgage expert at Moneyfacts, said: "It's
a bit devious, isn't it?"
The warning came after Standard Life raised its standard variable
rate - an unprecedented move that will immediately hit tens of
thousands of its customers.
(Article continues below)
Banks have always been entitled to move their variable rates
independently of the Bank of England, but have very rarely done
so and even then only for new customers. This is the first time
a major lender has hit its existing customers with higher bills.
Mortgage experts warned that other lenders will follow, as they
are forced to recoup the lost profits from the credit crunch which
led to the crisis at Northern Rock in September.
Full
article here.
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INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
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