Loans and Finance

Loans and Finance

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News and information about loans, money, debt, finance and business issues.

Wednesday, March 04, 2009

The Contrarian Stance

As the Bank of England gears up for quantitative easing (ie printing money) and a likely further cut in interest rates (decision due tomorrow), Woolwich (the mortgage arm of Barclays) has (as per The Times) increased its fixed and tracker rates by up to 0.3% points. A two year tracker for borrowers with a 40% deposit has increased from 2.74% above base to 2.99% above base. The fee is £995.

Woolwhich justifies this move on an increase in demand for their products and an increase in mortgage funding costs.

Clearly they are expecting a rate reduction announcement tomorrow!

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