Saturday, Jan 13, 2007
Surprised lenders end fixed rate deals
The Times Online: Rates panic hits borrowers and lenders
Banks and Building Societies, taken off guard by the MPC's quarter point IR rise this week, rushed to end fixed rate mortgages and similar deals, under fears that they such cheap deals could not be supported should there be another rise in the Spring. Unsurprisingly, financial institutions were not in quite such a rush to increase the interest on their savings accounts.
Posted by jellycaster @ 12:22 PM (150 views) Add Comment
3 Comments
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1. Surfgatinho said...
"The rises will come as a blow to homeowners hoping to switch from a variable rate to a fixed deal after the third base-rate rise in six months. Lenders reported customers clamouring for fixed-rate loans immediately after the rate rise was announced on Thursday but many will now miss out on the handful of deals still priced below 5 per cent."
Ouch! That's going to hurt!
2. Pintail said...
more of a question than comment, could anyone out there tell me if the payments on an interest only mortgage follow the base rate as i have read 1 in 10 choose interest only mortgages, if so surely their repayments would rise with interest rates and therefore if they are mortgaged to the hilt as we are led to believe, would unfortunately lose their house, would be grateful of any comments
3. David20040_0 said...
0.25% is nothing, 5.25% is low. Prices will still rise, this will have minimal effect.