Mortgage costs are unlikely to fall despite a £50billion bail-out for banks and building societies, home owners were warned last night. Daily Telegraph
Britain’s leading lenders said they were not planning widespread rate cuts and home loan costs would not return to the levels on offer before the global credit crisis.
The Bank of England announced yesterday that it would lend high street banks and building societies at least £50bn – and potentially up to £100bn — in return for taking on their risky mortgage and credit card debts.
The announcement led to allegations that billions of pounds in taxpayers’ money was being put at risk following 'wild lending' by banks and building societies over the past few years.
The warning on mortgage costs came before a meeting between mortgage lenders and Alistair Darling today. The Chancellor is expected to urge them to begin cutting rates after the Bank’s intervention.