BankWest backs cheap loan rate

BankWest has reassured customers that, in the "hypothetical" event that it was bought by another bank, the terms applying to its RateTracker home loan would be honoured. RateTracker guarantees customers that its rate will be 100 basis points below the average standard variable home loan rate offered by the four major banks for the first two years of the loan. BankWest spokeswoman Sally-Ann Parker said that "if (a takeover) were to happen in a highly hypothetical case, the terms of the RateTracker would continue to be met". BankWest has increased its share of the mortgage market in April from 3.24 to 3.26 per cent, with two-thirds of its new business going to the RateTracker loan. Although the bank has denied that it is up for sale, rumours persist that its parent, Halifax Bank of Scotland, will sell BankWest to bolster its balance sheet after losing $5.8 billion in mortgage write-downs in Britain.

Source: The Australian