Banks

Banks could go on the Companies / Organisations page but as Banks upset so many people they get their very own page.

Generally banks are being a pain at the moment, the bank base rate couldn't be much lower at 0.5% and yet the interest rates that the banks are charging to lend money is still comparatively quite high, generally between 4 and 6 percent for a secured loan or mortgage. As well as this they are taking large arrangement fees up front, just to 'arrange' the mortgage or loan can cost thousands of pounds so they are making as much money as possible while it lasts. They are also asking for high deposits so the loan to value is quite low, I've seen some lenders with maximum loan to values of 60%, so on a £200,000 house the buyer would need to find £80,000. For a first time buyer who may be buying a house at around £120,000 that means a deposit of £48,000. The deal from this particular lender was a pretty good interest rate of 3.49% but with a maximum LTV of 60% and an arrangement fee of £2,999.

Banks are not our friends.

12-01-10