Tuesday, April 1, 2008
Credit crunch is over, house prices rising again!
Banks are lending to each other again in rapidly rising volumes, as the LIBOR (interbank rate) fell to it's lowest level since last July. Big banks have wasted no time in re-opening their mortgage books and HSBC has already announced mortgages at just 4.99%. Fionnuala Earley, of Nationwide, said "This is great news for the housing market". Property agents Savills agreed, saying "We can now expect the traditional spring bounce to return". This good news is compounded by Nationwide's latest figures showing house prices rising by 4.8% in March. Northern Rock has relaunched its 125% "Together" mortgage, so even hard-pressed first time buyers can step onto the market now. "First time buyers should get on the ladder now before it's too late", said chief exec Adam Applegarth.