Gary comments on these matters in a YouTube appearance entitled "The Missing 2% - How Banks Are Cashing In On The Financial Crisis" shows just how larger institutions are using online media to get there message across. See how Gary gets his points across below as well as his commentary -
The Missing 2% - How Banks Are Cashing In On The Financial Crisis
Home-owners are currently basking in the one positive by-product of the recession - lower mortgage rates.
But Birmingham based Secure Trust Bank has called into question the reductions - claiming that people are still paying more than they should be and calling for preventative measures to be put in place.
Gary Jennison, Chief Executive of Secure Trust Bank, said that high street banks have been guilty of some crafty decisions - letting the public be grateful for reduced mortgage payments while not actually reducing them as far as they should in relation to the base rate.
And he said that when the base rate increases, those same offenders will have no qualms about maintaining the higher margin and cashing in on the change in circumstance.
Mr Jennison, who prides himself on running a profitable, strongly captialised bank that doesn't borrow from other banks, said that the reasons were fairly simple - the offenders were trying to claw their way back into profit.
"Of course loss-making banks have to get back into profit, but I'm really concerned about how unscrupulously mortgage lenders are behaving. Simply, are cheating customers on mortgage rates," he said.
Mortgage rate margins are usually two per cent over base rate. Twelve months ago, when base rates were five per cent, the average standard variable rate was seven per cent.
"And yet, with base rates currently down at just 0.5 per cent, the average standard variable rate is 4.6 per cent," said Mr Jennison.
"The margins have doubled in a year but people don't seem to question it because they're paying less than they were and they're grateful for that.
"On a typical £100,000 mortgage, customers have seen rates reduce from £700 per month to £560 , but perhaps they don't realise that they should really only be paying £450," he said.
He said that his major fear was that the situation would spiral out of control when base rates rise again. "If banks maintain their new four per cent margins and base rate goes back up to five per cent, then that same customer will be paying ®840 per month. That's an extra £280 from where he is today - and a 50 per cent increase on their current payment - talk about a false economy!"
Mr Jennison called for the government and the FSA to impose tighter control over the behaviour of banks and building societies.
"There is the potential for another scandal staring us in the face and it needs to be nipped in the bud. The Government and the FSA must instruct the banks on this issue to ensure that home owners who manage to get through the recession don't get hit hard and pay the price when we get through the other side," he said.
Your can follow Gary on Twiiter @ http://twitter.com/garyjennison
Would you like to know more about Social Media? and how its used to boost your brand? Contact HitSearch, Search Engine Optimisation and Pay Per Click specialists, on 0845 643 9289. Remember, its a big world out there, make sure you become visible