Hamptons reviewing mad increases
on interest rates
10/05/2007
From market research carried out by
Hamptons International Mortgages they have found that the interest
rate has increased to 5.5 per cent and this will keep on rising.
They feel it is going to make it impossible for first-time buyers
to carry out a mortgage
deal.
Director at Hamptons International
Mortgages, Jonathan Cornell commented: “The decision to
raise the base rate this month will take few people by surprise.
"With inflation last month reaching
the highest it has been for 10 years and the retail price index
hitting 4.8% some big banks are even predicting the possibility
of the base rate reaching 6% by early this autumn.
“The Monetary Policy Committee
were left little option but to raise the base rate this month,
however, I have my doubts as to whether this quarter point rise
will dampen house price demand as this will undoubtedly continue
to outstrip supply across large parts of the country.
“With fixed rate deals
being pulled by lenders left, right and centre and the distinct
possibility that this raise may not be the last, many borrowers
who have not acted before today will really start to feel the
heat of this rise.”
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