If the bank won't go beyond on interest rate cuts to customers, does it spell the call a halt for tracker type mortgages ?
Answers:
They've got to find the bubbly for the shareholders somehow
The tracker
The crackerjacker tracket
no, the tracker style will always exist as anything the base rate is the bank is borrowing at a cheaper rate than it is lend to you so they are still in profit.. i cant see how they will ever get away beside not passing on interest rate cuts anyway, its too competative, if one bank doesnt grant cheaper lending another will... it will just be going to a lower return on deposit account style investments
they are starting to by the looks of it.
They will widen the spread on the tracker. Instead of guaranteeing not more than 2% above base rate, they will engender it, say 3% above base rate. Simple, ain't it ?
i dont know if it will or not but it isnt right. the increases get passed on to us straght away but cuts dont.
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