Three Lenders Raise Mortgage Rates
June 25, 2008
Bradford & Bingley has increased the cost of its fixed rate residential loans of between 0.5% and 0.7%.
First Direct increased its two-year fixed deal by 0.16% to 6.15%. The Co-op upped its three-year fixed rate of 0.7% and its five-year period the rate of 0.9%.
The move comes as banks find it harder and more expensive to finance loans.
They have been caught in a credit crunch, has brought an end to a decade of borrowing cheap and easy loan.
Given the slow global economic growth, accelerating inflation and the weakening of the real estate markets, banks are tightening lending requirements and raising rates to those offered mortgages.
Bradford & Bingley also raised their mortgage rates variable annuity rate of 0.1% and put the cost of buy to let deals by 0.3%