Remember what I wrote earlier this week in regard to the finance industry’s non-conforming lenders?
The following rolled up in my inbox late yesterday arvo…
As you would be aware, Pepper recently passed on the 0.25% Cash Rate increase announced by the Reserve Bank on Wednesday, 8 August 2007 to both existing and new customers.
Pepper primarily funds its lending activities via the debt capital markets. Due to continuing volatility in the global debt markets and the resulting tightening of liquidity, Pepper’s borrowing costs have further increased. As a consequence, we will be implementing interest rate changes for new borrowers lodging applications received from Monday, 20 August 2007.
Although certain product interest rates have been reduced, the average net increase in interest rates across the Pepper product range will be 15 basis points or 0.15% per annum. Please note that these interest rate changes will only apply to borrowers lodging new applications received from Monday, 20 August 2007. They do not apply to existing Pepper customers.
Seems some are more exposed to borrowing short and lending long than others. No utterances from Bluestone Mortgages or Liberty so far.