Thursday, April 26, 2012
Hooray, interest rates rise
Banks have quietly hiked rates on the Governmentâ€™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 22â€‰ per cent. Mike Farley, chief executive of housebuilder Persimmon, says: â€˜Thereâ€™s nothing wrong with the concept of NewBuy, but to make it work we need a lower rate or people will be priced out.â€™ â€˜The rates are around 6â€‰ per cent and are so high people wonâ€™t be able to afford the repayments.'