The people that are on fixed rate mortgages have already borrowed the money from Lloyd's, which in turn have already borrowed the money at a fixed rate themselves surely as they have given them the money? And on an interest rate rise they would imeadiately increase their fixed rate mortgages on offer accordingly..!
I appreciate what you are saying but the interest rate also affects the cost at which lloyds borrows at and as it is the biggest morgate lender in the country it will have a short term negative impact if there is a rise as the increase cannot be passed on immediatly to the fixed rate morgates it as.
I would imagine it wouldn't of helped that much as it was anticipated that it's going to stay the same for a short while yet, maybe 6 months... But I don't really get how it should affect Lloyd's anyhow, it will only be small rises and gradual so shouldn't impact people's ability to repay and Lloyd's will adjust theirs rates accordingly to still get the same ratio of money in. I remember when Australia raised theirs rates a year or so ago... The stock market went up 2% that day, the reason Bloomberg said, was because it showed the economy was performing a lot better!
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