Thursday, March 27, 2008
Express in non-ramping story shocker
HOME owners were warned of more mortgage rate misery ahead by the boss of the Bank of England yesterday. Governor Mervyn King feared lenders will continue to refuse to pass on interest rate cuts to borrowers. At the same time, he dropped a big hint that the Bank base rate could be cut again by 0.25 per cent next month. But he admitted mortgage holders were unlikely to see their repayments slashed with banks desperate to recoup cash in the “credit crunch.” It means homeowners cannot expect any respite amid crippling rises in the cost of living and taxation. And they were warned that house prices are unlikely to rise significantly “for years.” Meanwhile LIBOR rose to 6%, the highest since December.