Thursday, Apr 19, 2007

This should make people think twice before they buy

BBC: Lenders pull fixed-rate mortgages

Lenders have started to withdraw their fixed-rate mortgage products in preparation for a possible Bank of England (BoE) interest rate rise.

Alliance & Leicester pulled its fixed-rate deals on Wednesday, and the BBC has been told that two other major mortgage lenders will now follow suit.

Lenders often withdraw mortgages when interest rates rise.

They base their borrowing costs on money market rates, which in turn are linked to the BoE's rate.

Price growth

On Wednesday, the UK inflation rate rose to 3.1%, which was higher than expected.

Posted by cash_buyer @ 01:02 PM (135 views) Add Comment

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