Despite the Bank of England’s rate being maintained at an historic low of just
0.5 per cent, borrowers can expect to pay up to 8 per cent on some fixed
rates, with many lenders increasing interest on deals even as their own
costs fall.
Politicians and mortgage experts condemned the rises at a time when 1,000
families a week are being evicted from their homes, saying banks were “stoking
up problems for the future” amid predictions of a rise in
repossessions.
Vince Cable, Treasury spokesman for the Liberal Democrats, said: “What is
worrying is how it is affecting existing borrowers, because at the moment
repossessions are being held back by the forbearance of lenders and the
various Government measures in place.
“But the banks are stoking up enormous problems for the future and the
dam is going to burst. More and more families are not going to be able to
afford these high rates and it is a timebomb that will go off sometime next
year when the banks close in on them.
“The banks are pushing the market to the limit but they are storing up
big problems for the future.”
Some of the biggest rises in rates are among fixed deals, which latest figures
show is the choice of three quarters of all borrowers, as they try to guard
against future rises.
Would-be homeowners are also being hit by the rising cost of arranging a home
loan, the average cost of which has jumped to more than £1,000.
And among the worse offenders are some of the banks which have received
billions of pounds in Government funding.
Amid a rise in mortgage application fraud, ided opinion on the future of
house prices, and predictions of failure for the Alistair Darling’s plans to
revitalise …
Read the original article at Telegraph
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Tags: Banks, deal, England, finance, fund, Homeowners, house, mortgage, pay, UK
