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14 Mar 08 - Fixed-Rate Deals 'More Expensive'
Investment landlords who opt for some short-term fixed-rate
mortgages are being hit with higher repayments as lenders
tighten their belts, new figures show.
Bank of England said the average interest rate charged
on a two-year fixed mortgage for 95% LTV reached 6.55% in
February - the highest level for seven-and-a-half years.
This was an increase on the 6.42% seen in the previous
month, and comes despite the Bank's Monetary Policy Committee
cutting interest rates by 0.25% to 5.25%.
It means the average cost of one of the deals is now back
up to a level not seen since August 2000, when the base
rate stood at 6%.
Home loans offering up to 125% LTV have already disappeared
from the market, while the number of lenders offering 100%
mortgages has more than halved during the past few months.
But the average mortgage rate for people taking out a two-year
fixed loan on 75% LTV fell for the fourth month in a row
in February to 5.76%, the lowest level since May last year,
the study added.
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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