Cheap and fair interest rates !?

Question

It makes me absolutely vomit that the banks rip off their own employees and customers and get praised for it.
Look, UK base rate is 5.75 yet loans are around 10% if you include the costs.
Mortgages are never under 8% and credit cards are over 15% and it is all such a TOTAL RIP OFF !
Maybe it is fair to charge a 0.5% margin on mortgages and 1% on credit cards (because of merchant charges too) and perhaps 2% on unsecured loans as 1% of people might default.
But hey, current margins are CRIMINAL and it is absolutely ridiculous that banks are allowed to do this in a democratic society.
Don't you think UK banks ought to be properly regulated and then everyone would be better off and we would avoid the coming economic depression.

Answer 1

Banks don;t make much on mortgages.

On the whole, they borrow the money from elsewhere and its very typical for mortgages to be 0.5-1% above base, so where you got 10% I'm not sure.

For my mortgage, I paid for survery etc now only pay 0.5% above base which I think is perfectly reasonable considering the risk and the admin they have.

Answer 2

Margins are actually much too low ...

Northern Rock was essentially sunk when the markets realised that the interest rate on the BoE loan was higher than the interest rate being paid by NR Mortgage holders ...

The banks are already over-regulated (did you know that if they have any reason at all to believe you have made a 'suspicious transaction' they are obliged by law to freeze your account (no money in, no money out) for weeks on end whilst the Police investigate ?)

NB. We live in a capitalist system - your ideas of 'fairness' may have merit in a communist system, however as we all know, such a system is not viable ... so stop thinking 'lets outlaw the capitalist system and revert to a barter economy' and start thinking 'where's the profit for me ?'

Answer 3

you say that interior the form of a assertion. And that assertion is incorrect. For the main area, you will in no way meet in man or woman every physique from the economic employer you ultimately have a loan with. in the process the approval technique there is the Goverment monitoring device questions relating to the 1003(credit utility) which asks your intercourse/race, and is voluntary to respond to, no longer manditory. A economic employer could no longer care much less in case you have been black, white, yellow, purple, purple. What they care approximately is which you funds is green and you pay your expenses on time. in case you have very undesirable credit, your value would be greater because of the fact of that, no longer because of the fact of your epidermis shade. in case you have marvelous credit you will get an exceptionally stable value, uncomplicated and straightforward.