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28 April 08 - Mortgage Woe As Lenders Raise Rates
Two of Britain's biggest lenders have raised their rates,
sparking further woe for new borrowers who face escalating
mortgage costs.
Rates are rising by up to 0.6% for borrowers taking out
a mortgage through an intermediary at both the Halifax and
Cheltenham & Gloucester.
Halifax last increased its broker rates little over a week
ago, raising its short-term deals by up to 0.5%. It said
it was increasing its tracker rates and fixed-rate deals
taken out through intermediaries by up to 0.6%, but would
reduce its 10-year tracker rate by 0.1% to 6.64%.
The move means the group's three-year tracker for a borrower
with at least a 25% deposit will jump from 5.62% to 6.22%,
costing an extra £670 a year for someone with a £150,000
mortgage.
Cheltenham & Gloucester, the mortgage arm of Lloyds
TSB, also increased the cost of its fixed-rate deals taken
out through intermediaries by up to 0.6%, pushing up the
cost of its two-year fixed-rate mortgage for someone with
a 10% deposit to 6.59%. It also increased its lifetime tracker
mortgage by 0.4%, to give a rate of 6.63% for a borrower
with a 20% deposit who is paying a £995 fee.
News items supplied by SelectNews, produced by PA Business,
part of the group that owns The Press Association, the UK's
national news agency. Copyright (c) PA Business 2007.
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