Mortgage interest

Press, 2 July 1986, Page 18

Mortgage interest

Sir,—A frontpage article on June 18 reported that at least

four trustee banks and the United Building Society had reduced mortgage interest rates. Trusteebank South Canterbury dropped its existing first mortgage by 2 per cent, Trusteebank Waikato by 2 per cent to 3i/ 2 per cent, Trusteebank Bay of Plenty by 2 per cent to 3 per cent and Trusteebank Canterbury, dragging the chain, reduced existing mortgages IU-per cent, but not until August-September. I am sure that thousands of people who have mortgages with Trusteebank Canterbury would feel disappointed and will continue to struggle to meet their commitments. Other banks can do better than Trusteebank Canterbury in reducing , interest rates. What is wrong with Trusteebank Canterbury?—Yours, etc., JOHN BURNETT. June 19, 1986. [Mr R. T. Bray, deputy general manager, Trusteebank Canterbury, replies: “Mr Burnett is obviously unaware that Trusteebank Canterbury’s base housing rate was already lower than some of the other Trusteebanks. Although the size of the reduction varies, all of the Trusteebanks mentioned will, in fact, have the same base housing rate of 19 per cent as Trusteebank Canterbury and all of the reductions will take effect about the same time. I assure your readers that it is our policy to further reduce lending rates as the' cost of deposits continues to decline and that we are committed to remaining the leading source of competitive quality housing finance in Canterbury, • Marlborough and Nelson.”]