Thursday, April 26, 2012

Hooray, interest rates rise

Sneaky mortgage rate hike on new home plan for first-time buyers - just 43 days after launch

Banks have quietly hiked rates on the Government’s flagship housing scheme for first-time buyers just 43 days after it was launched. NatWest, Woolwich and Nationwide are among those who have increased the interest on their mortgages under the NewBuy scheme by up to 22  per cent. Mike Farley, chief executive of housebuilder Persimmon, says: ‘There’s nothing wrong with the concept of NewBuy, but to make it work we need a lower rate or people will be priced out.’ ‘The rates are around 6  per cent and are so high people won’t be able to afford the repayments.'

Posted by stuartking @ 05:59 PM (1810 views)
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4 thoughts on “Hooray, interest rates rise

  • mark wadsworth says:

    “The rates are around 6  per cent and are so high people won’t be able to afford the repayments.

    Nonsense. FTB’s would be perfectly happy to pay 6% on their mortgages, provided the likes of Taylor Woodrow dropped their selling prices by a quarter.

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  • [email protected] – Absolutely right, only offered on new homes, what a scam!

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  • A nice little earner for the banks…

    Cheap taxpayer loans around 1.25% then charge 6% to the punters.

    Can’t fail cannit?

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  • Mike Farley, chief executive of housebuilder Persimmon, says: ‘There’s nothing wrong with the concept of NewBuy, but to make it work we need a lower rate or people will be priced out.’
    Yeah Mike that’s right, it’s the interest rate that prices people out, not the, errrr, price.

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