Housing Prices May Crash - Part 5
Interest Rates
Mortgage lenders are making it more difficult for those who don’t have any savings to get a loan. Many of the mortgages currently available are not offering a rate lower than 7.24 percent on a down payment of 5 percent. In other words unless you increase the down payment your mortgage interest rate will be at least 2 percent higher than the Bank of England rate.
In another move Skipton a building society has decided to charge a fee of 799 pounds. This fee applies to any of the individuals who will be taking out a mortgage with a building society on a standard variable rate. Before the SVR mortgage was free because they were more expensive than the cheaper short term deals. This is the second building society to introduce a fee in this week. Hinckley and Rugby has also decided to charge a fee for their mortgage deals.
The Bank’s credit condition survey has looked into the repossessions and arrears side of issues as well. These numbers have been on the rise, which is why many of the lenders and banks are struggling to survive. Since they are struggling with losing money they have felt the need to change certain charges as well as deals.