What next lenders?

Here are some ideas about where we feel banks will go next in terms of the lending market, these are only opinions, whether or not we see any of this coming to fruition can only be told by time.

1. Early Redemption Bonus: Early redemption means ‘paying off your mortgage early’, in fact when you switch your loan this is what happens, or when you clear it entirely. Why would a bank offer you a cash bonus for actually moving your loan away from them though? Or for paying it off? Isn’t the idea that you pay lots of interest?

Actually that’s a mixed answer, normally it would be ‘yes’, banks want you to keep paying interest over time, but now we are seeing a few things that we have not seen before. Firstly are negative margin loans, if you have a tracker of anything less than ECB + 1.5% (ish) then the likelihood is that the bank is not making any money on your loan after their operational cost, therefore it may be worthwhile to give you a monetary …

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