Rate increases on fixed rate deals June 25th, 2008
The Bradford & Bingley, Co-operative bank and First Direct have today raised the cost of their fixed rate mortgages as Banks find it increasingly difficult to raise finance to fund mortgage deals. The Co-op saw the biggest rise as they increased their rates between 0.7% and 0.9%. The move by these three banks now takes the average cost of a fixed rate mortgage to over 7%.
The squeeze on mortgages continues apace and there seems to be no sign of a let up. It’s no surprise with the lack of decent deals on offer, the housing market is suffering as much as it is.
June 27th, 2008 at 12:13 pm
It’s not only the interest rate that is increasing but also the fees. £999 seems a common amount to secure such a deal. Borrowers are better using the money to reduce their existing mortgage so as to bring the LTV to a level whereby the odd decent deal is still available.