Euro­zone chaos hits mort­gages

Yorkshire Post - Property - - FRONT PAGE -

MORT­GAGE rates could rise as a re­sult of chaos in the euro­zone, ac­cord­ing to the Bank of Eng­land.

The mon­e­tary cri­sis is push­ing up the cost of bor­row­ing for high street banks in the UK and they are set to pass it on to mort­gage hold­ers. The Bank of Eng­land say av­er­age rates on new tracker mort­gages have al­ready risen by 0.5 per cent in the eight months to April. “In the ab­sence of falls in fund­ing costs, it sug­gests that some fur­ther in­crease in mort­gage rates is likely as banks seek to re­store their mar­gins,” says the Bank of Eng­land in its lat­est in­fla­tion re­port. Some mort­gage lenders have al­ready in­creased stan­dard vari­able rate loans, though they have of­fered in­cen­tives such as re­duced ar­range­ment fees.

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