28-03-2008
UK's largest mortgage lenders raise rates
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Three of the UK's largest mortgage lenders yesterday opted to increase the interest rates on their mortgage products.
According to reports by the Financial Times, the move - a consequence of the ongoing credit crunch - will lead to a large number of homeowners incurring greater expense as a consequence of the higher rates. Interest rate increases were implemented by a subsidiary of HBOS and Cheltenham & Gloucester, a division of Lloyds TSB.
"The recent sharp rise in Libor rates is indicative of the reluctance of banks to lend to each other and suggests that mortgage finance will remain in short supply for some time to come," said a representative from the Royal Institution of Chartered Surveyors.
Nationwide also opted to increase rates. The report also cautioned that mortgages would also become more difficult to obtain from today, following a decision by banks to tighten lending criteria applied to customers.