Castles In The Sky - Interest Rates Rise And Fixed-Rate Mortgages

AN Englishman’s home is his castle but with interest rates set to rise, banks and building societies have decided to make it even harder for homeowners to pay for their beloved properties.

The Telegraph informs us that a number of mortgage brokers have suspended their fixed-rate mortgages after experiencing a huge rise in the number of inquiries from customers desperate to secure fixed-rates deals before the forecasted interest rate rise.

The likes of the Alliance and Leicester said that “unprecedented demand” for its fixed-rate deals had “left us with no option” but to suspend the products.

All this comes after the Governor of the Bank of England, Mervyn King, wrote to Gordon Brown, pledging to use interest rates to bring inflation down.

One suspects Mr. King doesn’t have to worry about paying his mortgage every month.

Anorak

Posted: 19th, April 2007 | In: Money Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink