Mortgage lenders axe cheap deals leaving homebuyers 'crippled'
By BECKY BARROW
Homebuyers face being crippled by their mortgage repayments as Britain's biggest lenders are axeing their cheapest deals, experts warned.
Over the last few days, home loan giants such as Halifax and Alliance & Leicester have scrapped their best fixed rate mortgages.
Fixed rates mortgages are popular because they provide certainty by guaranteeing a fixed interest rate for a certain period of time.
But the good deals are disappearing because the Bank of England is tipped to raise interest rates next month and possibly again early in the New Year.
The move is a major blow for first-time buyers who have been dealt the 'double whammy' of soaring house prices and rising interest rates.
Homeowners who are about to remortgage or take out a bigger mortgage to buy a larger home will also be hit by the move.
Yesterday experts urged people on the verge of taking out a mortgage to rush to secure the dwindling number of good deals which are still on offer. (AtW: fking experts my arse - they should have told people not to buy house as clearly the bubble is on its last blow, ffs)
David Hollingworth, mortgage specialist from advisers London & Country Mortgages, said: "For anyone who wants the stability of a fixed rate deal, there is no point hanging around becauase it looks like rates are going up."
Deals which have been scrapped are mortgages fixed for two-years at competitive prices, such as Alliance & Leicester's deal at 4.64 per cent.
Halifax, Britain's biggest mortgage lender, has closed its 4.39 per cent deal and Cheltenham & Gloucester has scrapped its 4.65 per cent deal.
Northern Rock has warned that it has put all its fixed rate deals are on 'withdraw watch' which means they could be scrapped at any time.
Some deals are still available, such as Nationwide's deal at 4.47pc but the fee charged to take out the deal is an eyewatering £1,499.
Nick Gardner, a director of Chase de Vere Mortgage Management, said: "A rise in interest rates is a kick in the teeth for first-time buyers. (AtW's comment: yes Nick, maybe you should have advised people to NOT buy houses and stop ALL deals for a month just to show the force of buyers, ffs)
"They've got the double whammy of rising house prices and rising interest rates."
More expensive fixed rate mortgages are the last thing that Britain's hard-pressed homebuyers need.
They are already struggling with average house prices at a record high of about £180,000 which are forecast to keep on rising.
More than a decade after prices starting going up, the estate agents Knight Frank predicts prices will go up an inflation-busting six per cent next year.
People are being forced to borrow record amounts of money to buy a home. The average mortgage is an all-time record of £130,000, according to the Council of Mortgage Lenders.
The combination of soaring mortgages and rising interest rates is a terrible one for homeowners whose finances are stretched to breaking point.
In 2003, the average mortgage was just £80,000 and it was possible to get a fixed deal at 3.25 per cent. This would mean monthly repayments of £390.
Today, the avearge mortgage is £130,000 and fixed rates are set to rise to 5.3 per cent by the spring. This would mean monthly repayment of nearly £800.
One expert said the market had been 'spooked' by the strong hint by the Bank of England that rates are on their way up.
The Bank's monetary policy committee voted to keep rates on hold this month (oct) at 4.75 per cent, but the decision was close. Two of the nine members wanted rates to go up to five per cent.
According to the minutes released after the meeting, it warned: "But for most members, the decision was finely balanced."
If rates do go up to 5.25 per cent by the spring, as expected, they would be at their highest level for more than five years.
--------
The end is now surely nigh.
By BECKY BARROW
Homebuyers face being crippled by their mortgage repayments as Britain's biggest lenders are axeing their cheapest deals, experts warned.
Over the last few days, home loan giants such as Halifax and Alliance & Leicester have scrapped their best fixed rate mortgages.
Fixed rates mortgages are popular because they provide certainty by guaranteeing a fixed interest rate for a certain period of time.
But the good deals are disappearing because the Bank of England is tipped to raise interest rates next month and possibly again early in the New Year.
The move is a major blow for first-time buyers who have been dealt the 'double whammy' of soaring house prices and rising interest rates.
Homeowners who are about to remortgage or take out a bigger mortgage to buy a larger home will also be hit by the move.
Yesterday experts urged people on the verge of taking out a mortgage to rush to secure the dwindling number of good deals which are still on offer. (AtW: fking experts my arse - they should have told people not to buy house as clearly the bubble is on its last blow, ffs)
David Hollingworth, mortgage specialist from advisers London & Country Mortgages, said: "For anyone who wants the stability of a fixed rate deal, there is no point hanging around becauase it looks like rates are going up."
Deals which have been scrapped are mortgages fixed for two-years at competitive prices, such as Alliance & Leicester's deal at 4.64 per cent.
Halifax, Britain's biggest mortgage lender, has closed its 4.39 per cent deal and Cheltenham & Gloucester has scrapped its 4.65 per cent deal.
Northern Rock has warned that it has put all its fixed rate deals are on 'withdraw watch' which means they could be scrapped at any time.
Some deals are still available, such as Nationwide's deal at 4.47pc but the fee charged to take out the deal is an eyewatering £1,499.
Nick Gardner, a director of Chase de Vere Mortgage Management, said: "A rise in interest rates is a kick in the teeth for first-time buyers. (AtW's comment: yes Nick, maybe you should have advised people to NOT buy houses and stop ALL deals for a month just to show the force of buyers, ffs)
"They've got the double whammy of rising house prices and rising interest rates."
More expensive fixed rate mortgages are the last thing that Britain's hard-pressed homebuyers need.
They are already struggling with average house prices at a record high of about £180,000 which are forecast to keep on rising.
More than a decade after prices starting going up, the estate agents Knight Frank predicts prices will go up an inflation-busting six per cent next year.
People are being forced to borrow record amounts of money to buy a home. The average mortgage is an all-time record of £130,000, according to the Council of Mortgage Lenders.
The combination of soaring mortgages and rising interest rates is a terrible one for homeowners whose finances are stretched to breaking point.
In 2003, the average mortgage was just £80,000 and it was possible to get a fixed deal at 3.25 per cent. This would mean monthly repayments of £390.
Today, the avearge mortgage is £130,000 and fixed rates are set to rise to 5.3 per cent by the spring. This would mean monthly repayment of nearly £800.
One expert said the market had been 'spooked' by the strong hint by the Bank of England that rates are on their way up.
The Bank's monetary policy committee voted to keep rates on hold this month (oct) at 4.75 per cent, but the decision was close. Two of the nine members wanted rates to go up to five per cent.
According to the minutes released after the meeting, it warned: "But for most members, the decision was finely balanced."
If rates do go up to 5.25 per cent by the spring, as expected, they would be at their highest level for more than five years.
--------
The end is now surely nigh.
Comment