Mortgage Woes

As the liquidity freeze continues, thanks to the ponderously slow response and inaction of the Bank of England, banks and building societies are rationing/withdrawing mortgages and in some cases profiteering.

Halifax is raising rates on trackers and fixes, and will target people with small deposits.

A two year fix for remortgagers with a 5% deposit will increase by 0.45% to 6.79%. However, borrowers with deposits of more than 10% will see smaller increases and those with more than 25% could even see rates fall slightly.

Halifax has also raised rates on its two-year trackers for borrowers who have a 10%, deposit by 0.25% to 6.74%.

NatWest raised its offset mortgage rate by 0.25% to 6.45%, even though Bank rate has been on hold and is expected to fall.

Skipton building society added a £799 fee to its standard variable rate deal offer at 6.7% for new borrowers, unheard of for variable rate mortgages.

Needless to say, this is having a very damaging effect on the already troubled housing market; as people who thought that they could afford to buy a house now find that they can't.

Posted in: bank of england,debt,Halifax,interest rates,liquidity,loans,mortgages,NatWest,property,Skipton