Seems as if the British mortgage lenders are gathering for a mutiny of their government inspired interest rates. As it is, the government has required real competition with the interest rates offered and the costs required by all lenders- and they do not like it. The Brits, if you recall, were first in government take over’s of the bad lenders- specifically Northern Rock.

 

It is this lender, along with their cohorts, that has now increased the rates offered for consumer housing rather than  decrease it. Apparently, British mortgage lenders do not like being told what to do and as nasty children do they did the exact opposite. It is the banks that are owned by the British taxpayers that are the biggest culprits here, borrowing money at rock bottom rates from the government and then increasing the rates to lend to consumers.

In the US, the question would also arise as to why interest rates are teetering between 5 and 6% when the (government owned) lenders are getting money at close to zero. Mr. Obama, can you do something about this spread? Mortgage rates should be closer to 4% these days, but which bank would really step up to the plate and lend out their money at such a bad return for 30 years?

What our banks are doing is just as evil a plan. Our mortgage rates fluctuate so greatly on a daily and weekly basis, that you truly have to stay on top of the game to land a good rate. As I say, you have to be in it, to win it!

Kissing the Blarney Stone and Happy Birthday!

 

Dale Robyn Siegel