When a borrower solutions for five many years the bank basically matches that with a trader searching for an excellent 5-year fixed price

When a borrower solutions for five many years the bank basically matches that with a trader searching for an excellent 5-year fixed price

Finance companies is actually blaming higher mortgage costs toward highest financing can cost you also into the OCR during the historical downs. That is a handy half truth. Discover around three issues when you look at the gamble:

  1. Money stress getting banking institutions
  2. High financing will cost you
  3. The brand new rush to solve

While i chatted about for the Oct a year ago, finance companies is actually under increasing earnings stress. [Read more…]