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Mortgage lender offering some impressive rates on savings

August 6, 2008 by admin  
Filed under News, News-Banking

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According to a recent report a number of mortgage lenders have been offering some impressive interest rates on savings accounts in a bid to increase deposits from savers to aid funding. Many banks and lending institutions have experienced funding problems as a result of the credit crunch, which has swept across the country leaving a trail of turmoil in the financial markets. A number of high profile casualties, such as Northern Rock, have suffered terribly as a result of the problems in the financial sector, and mortgage lenders are desperate to avoid heading down the same route.

With increased difficulties in securing funds, particularly for smaller lenders, one of the solutions that some mortgage lenders have come up with is to increase funding through an increase in the level of deposits coming in, and in order to do this many have decided to offer higher interest rates and better deals on savings to try and entice customers. For example the Nationwide recently launched a number of fixed rate bonds paying up to 6.5% whereas the best Guaranteed Income Bond is at present 4.77%.

A number of other mortgage lenders have started to offer higher rate bonds to encourage deposits, and amongst those launching bonds with impressive rates are the Bradford and Bingley, Birmingham Midshires, Icesave, and Sage. Although savers could enjoy seeing impressive returns on their savings with some of these bonds experts warn that anyone looking to find a good rate of interest should still compare different products and interest rates, as new ones are coming out on a regular basis as banks try to pull in increased custom and higher deposits.

Funding for banks, mortgage lenders, and other financial institutions has become a major issue recently as a result of the credit crunch, which was sparked in the sub-prime sector of the United States.

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  1. Central bank governor and deputy governor did not agree on interest rates says:
    August 8, 2008 at 10:36 am

    [...] Mortgage lender offering some impressive rates on savings [...]



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