Home Loan Interest Rates Still Too High

The Bank of Englands Quarterly Bulletin has confirmed that High Street banks have not really been passing on base rate cuts fully to their customers.

Mortgage rates have been retained at the record low of 0.5 % since around March 2009 (whilst the nation was in the midst of its toughest recession in literally decades), but despite this all, banks are not passing on this level of saving saving straight away to their many home loan borrowers.

August numbers have presented that banks are billing high overdraft rates that have often typically been around the 19.1 % mark - this figure was approximately 38 times more the 0.5 % rate of interest at the time.

The study enunciated : During the recent economic crisis the Bank rate was cut back sharply, but generally the interest rates appointed on new loaning to houses did not go down by anything like they should have done and indeed some rates of interest climbed in somewhat unfair circumstances.

In the influential study, the Bank of England offered many theories as to why this was materializing.
First of all, it stated banks are looking to promote their working capital reserves, with the intention to follow with the governing body's novel, yet much tougher rules.