Cost of Fixed Rates increase
The Bradford & Bingley, Co-operative bank and First Direct have today raised the cost of their fixed rate mortgages as Banks find it increasingly difficult to raise finance to fund mortgage deals. The Co-op saw the biggest rise as they increased their rates between 0.7% and 0.9%. The move by these three banks now takes the average cost of a fixed rate mortgage to over 7%.
The squeeze on mortgages continues apace and there seems to be no sign of a let up. It’s no surprise with the lack of decent deals on offer, the housing market is suffering as much as it is. The Banks might well be continuing funding to housebuilders, but there sure not helping them sell any of their houses.
