Friday, December 7, 2007
0.25% Rate cut is not much help when you drowning
"Retailers who have seen their sales tumble ..... there’s a simple reason for that: the number of homeowners emerging, shocked, from generous fixed-rate mortgages is too great, as the Council of Mortgage Lenders confirms. In September 2005, nearly three quarters of new mortgages were completed at a fixed rate – the highest proportion for years – and the rate averaged 4.8 per cent. Advance to September 2007, when the most popular two-year fixed-rates expired, and the average fix had soared to 6.4 per cent."