Banks' Small Print Ruse to Block Cuts; Banking Scam: Interest Rate Cuts May Not Help Homebuyers
Byline: Becky Barrow
BANKS may use the small print in mortgage contracts to prevent borrowers benefiting from future interest rate cuts by the Bank of England.
Experts warned yesterday that little-known clauses mean the interest rate paid by borrowers may not fall when the Bank's rate drops.
This represents a major blow for cash-strapped homeowners desperately hoping to see their monthly mortgage bill drop.
Last week, the Bank of England cut rates by 1.5 percentage points to 3 per cent.
But many bank giants did not cut their rates until ordered to do so by the Prime Minister.
With interest rates expected to fall as low as zero, …
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Publication information:
Article title: Banks' Small Print Ruse to Block Cuts; Banking Scam: Interest Rate Cuts May Not Help Homebuyers.
Contributors: Not available.
Newspaper title: Daily Mail (London).
Publication date: November 10, 2008.
Page number: 6.
© 2007 Daily Mail.
COPYRIGHT 2008 Gale Group.
This material is protected by copyright and, with the exception of fair use, may not be further copied, distributed or transmitted in any form or by any means.
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