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Emergency interest rate cut? Really? When did that happen?

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Remember that 0.5% emergency interest rate cut last week? The one that was supposed to bring a bit of relief to homeowners and maybe get the mortgage market moving again? Remember that? We only ask because it looks like some of the big mortgage lenders certainly don’t remember it.

The Nationwide announced today that it was increasing the interest rate of its tracker mortgages by as much as 0.3% and making it even harder for first time buyers to get a mortgage. Northern Rock, which as we all know is now owned by the same government which recently berated lenders for not passing on interest rate cuts to its customers, is only going to cut its standard variable rate by 0.15%, although it claims that customers with tracker mortgages will be given the full 0.5% cut in December.

The government seems desperate to roll back the clock and get the banks handing out mortgages with the carefree abandon of 2007 in order to get the property market booming again, but on this evidence it looks like that just isn’t going to happen. Good.

  1. They are so desperate to get lending levels back to 2007 that they seem to have forgotten that irresponsible lending/borrowing was the whole cause of the sh!t tip we find ourselves in now.

    It’s like some really bad TV advert, “You need to borrow more to pay of your borrowing”. We’re all screwed, I’m of to Asia where they understand the value of saving.