Average two-year fixed mortgage has risen to 6.19%
Lewis, who spoke to the chancellor earlier this week, said he had suggested lenders should be stopped from increasing their profits on the back of interest rates going up.
They should be doing what they can in return, because they’re too big to fail and, now, they don’t want us to fail. They should be doing what they can in return.
So to be increasing profits, increasing margins at this point seems absolutely wrong. It’s profiteering.
If I were the chancellor, and what I said to the chancellor obviously is, I think you need to make sure that they put savings rates up at least with the same rate as borrowing.
Because if you do that, you take money out of the economy and that’s another way of helping inflation that’s less painful than putting lending up.
But also they need to put money aside to help with forbearance. Because even if the idea is we want to, not me, as a state, we want to squeeze borrowers ’til the pips come out so that they haven’t got that much disposable income, then what you don’t want is people defaulting or going into arrears or being repossessed.
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— richard donnell (@richard_donnell) June 23, 2023