Days of variable rate overcharging coming to an end
THE fortress is beginning to crumble. Banks have put up huge barricades to protect themselves from having to reduce variable mortgage rates in line with the ultra-low European Central Bank interest rate, and rock-bottom wholesale market interest rates.
They allowed variable rates to rise to the point where they average 4.2pc for new and existing customers. This is four times higher than tracker rates, and at least 2pc more than the average variable rate in the eurozone.
So banks here are sabotaging attempts by the ECB to bring mortgage rates down.