Friday, Jul 17, 2009
Exceptionally bright outlook for house prices
BBC: Gloomy outlook for mortgage costs
The long-term cost of mortgages is likely to rise as lenders continue to resist taking on too much business, brokers say.
The cost of funding certain mortgages has fallen but lenders have failed to drop home loans costs in response.
The amount banks charge to lend to each other, measured by the Libor rate, has fallen below 1%.
An industry body said restoring the stability of the financial system was costing money in the current climate.
And brokers said that mortgage rates remained at relatively low levels.
Posted by mark wadsworth @ 02:50 PM (638 views) Add Comment
2 Comments
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1. mrflibble said...
"With the cost of borrowing reduced and the vast sums of taxpayers money used to rescue many banks, those with a smaller deposit would like to see more reasonably priced deals available."
I know I'm being naughty to even suggest it, but what about a more reasonably priced house instead?
2. paul said...
Good point mark.
Typical BBC doublethink. While mortgage lenders restrict lending, costs can only come down but this is a bad thing for property owners which the BBC sides with so its all just bad.