2
Jun
Rate changes unlikely to cause mortgages holders to "desert the
ship"
Changes to the rates of variable mortgages introduced by one lender
are unlikely to make many customers take their business elsewhere,
it has been suggested.
According to Paula John, editor at Your Mortgage, the alteration of
the variable-rate structure on Lloyds TSB and Cheltenham &
Gloucester home loans will probably not make many Britons "desert
the ship overnight".
Her comments came after the lender announced that new customers
will revert to a rate of 3.99 per cent when their mortgages come to
an end.
However, existing customers will stick to the previous 2.5 per cent
level.
Ms John stated: "While some people will be disappointed and
eventually existing customers will see the cost of their standard
variable-rate go up, overnight it is not going to have a massive
impact."
The expert also noted that banks are under commercial pressures and
have been forced to backtrack on the initial deals after it became
clear that the base rate is likely to remain low.
