Franky on Finance

December 14, 2007

Northern Rock entices savers and puts off borrowers

Filed under: loans, mortgages, savings — frankyonfinance @ 8:59 pm
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For the past two weeks, the bank has been offering loyalty bonuses to savers and increased rates to a range of savings accounts.  But on the other hand, it has withdrawn mortgages, loans, credit card, and increased borrowing rates to rediculous highs with huge arrangement fees.  Obvious signs that its trying to recoupe some of its loses after its savers decided to match away with their money in toe back in October.  It has since then borrowed more money from the Bank of England to the tune of £29bn.  The move has pushed some of its savings products up the best buy tables and deterred mortgage brokers with fixed rates starting from 6.79% on 90% LTV with arrangement fee of £1,995.  As a good loyal Northern Rock mortgage customer, I will have to match off too unless they sort this out.
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