Bank of China reassures its tracker passes on rate cuts
Posted on 25 January 2010 by
Bank of China (UK) has an advert on p.9 of Metro today promoting its Bank Rate + 2.3% lifetime tracker, available up to 75% LTV. If one assesses competitiveness purely on rate and ignores the criteria this rate is market leading for LTVs between 70.01% and 75%.
What caught my eye in the advert was the statement that “Since January 2008, we have given borrowers the benefit of every reduction in Bank of England base rate. In 2010 we wish to give you more...A New Year Gift Lasts For Lifetime.”
However, there is then nothing in the advert to say what the “more” than it offered previously is. Furthermore, although I know that the Government of China has an extremely dubious record on human rights I find it surprising that Bank of China feels consumer confidence in its brand is so low that it needs to reassure prospective borrowers that it actually complies with the terms of its lifetime tracker mortgage and really does pass on Bank Rate cuts as required in its mortgage contract.
Having said that I welcome Bank of China as a relatively new intermediary mortgage lender in the UK and hope they expand their lending this year as extra competition can only be good for borrowers, but maybe its key advertising message should be refined.
Categories: Bank of England, Interest rates, Mortgages, Regulation
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