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.
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