Each week, we round-up the best comments, emails and letters to the site and pick one reader contribution as our Star Letter. This week’s award goes to:
Funding for Lending fuels spike in direct-only products
While very happy to see attractive new rates coming out, are these only due to the FLS? We are seeing continued SVR rises (see Hometrack’s recent research) and net lending from some of the large lenders in negative territory.
While more money going into the system is a good thing in my opinion, we need to be careful that we attribute any effects (e.g. new attractive rates) to the correct cause.
Clearly banks are still building up their balance sheets and are doing so by holding onto FLS money, attracting customers direct, and increasing SVRs.
I don’t think it is just the FLS which is having an effect here, although it might be the catalyst. Interesting piece which makes me feel that there is very little good news for the broker as yet.
Anon
19 Mar 2013 | 13:50
