2 Major Banks to Increase VARIABLE mortgage rates this week

From a molish denizen of the financial underworld ( and well known to 2pack) comes an interesting story.

2 Major mortgage lending banks are colluding to increase their VARIABLE rates. These are 2 of the top 5 mortgage lenders by current loan book size .

You are right, the ECB rate has NOT gone up but they were hoping it would go down and that they would not pass the cut on in full.
The ECB tends to move in .25% increments and the plan was to split the difference with a .125% cut to the variable rate and .125% margin for themselves.

They now reckon that they need the money sooner and cannot wait any more for the ECB, therefore a 0.1% increase in the variable rate is in the immediate pipeline from both .

You will all know who they are shortly. While you may correctly expect others to follow their lead in short order there is no ( known) collusion bar between the 2 big ones.

Contact the competition authority if you’ve info. Or just forward it to the papers.

or just get yourself a tracker rate … ie one that stays a certain % above the ECB.

Is it illegal for them to raise like this, so close together?

Can the comp auth even investigate without sworn evidence?

Let them declare themselves. Its that simple really .