‘Super-spreads’ emerge in mortgage financing

Reluctance by banks to cut mortgage rates has created ‘super-spreads’ in the mortgage financing market, according to the latest report by HassConsult and The Mortgage Company. The report says the banking sector may be seen to be cautious ahead of elections, but there is also a possibility that lenders have taken to profiteering. Mortgage rates have remained unmoved since the last Central Bank Rate cut on January 10 (almost halving the 18 per cent level of December 2011) to 9.5 per cent, leaving borrowers paying almost double the benchmark rate...