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January 16, 2007

Surprising News, Eh?

Profit seeking companies act so as to make profits.

But one broker said lenders were stopping the offers to increase their profit margins.

"Just because lenders pulled their fixed-rate mortgages does not mean they ran out of the money," said Nick Gardner at Chase de Vere.

"A lot of lenders probably had a good deal of the tranche of cash left and they will now put it back on the market at higher rates, thereby increasing their profit margins."Lenders might argue that the cost of fixed-rate money has gone up, but re-pricing existing money is a very profitable exercise."

What next from the newspapers? Ursine toiletry in the forests?

January 16, 2007 in Business | Permalink

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Comments

Oh, the comedy.

"Ursine toiletry in the forests"!

What a clever elegant variation, rendering a tedious old cliche suddenly fresh and new -- and so extraordinarily chortlesome. Why, it's almost as funny as altering "taking the piss" to "extracting the urine". And it does show one as being so very educated, what with its latinate flavour.

Posted by: StuartA | Jan 16, 2007 11:42:19 AM

surprising though that this has stuck across the industry - typically mortgages in the UK are very competitive and you would have expected someone to try to have a go at grabbing market share by using mark-up pricing rather than marginal cost.

Posted by: dsquared | Jan 16, 2007 3:33:58 PM