Abbey raises it’s mortgage rates
Nov 5th, 2008 | By admin | Category: Lead Story, finance
Abbey one of the UK’s biggest mortgage lenders has raised the cost of borrowing just before the expected rate cut by the Bank of England on Thursday the 6th November. Abbey have increased the rate on tracker mortgages negating any benefit customers would have received from a 0.5% rate cut.
The prediction in rate cut is 0.5% with some saying that we could see a rate cut as high as 1%. Abbey have raised their 2 and 3 year tracker deals by up to 1%. They are now only offering tracker mortgages to consumers lucky enough to have a 25% deposit. No wonder the first time buyer market has dried up!
Abbey are not the only lender to have raised rates with the Halifax and Nationwide also raising the rates if some of its tracker mortgages. The Bank of England are trying to stimulate spending within the economy with rate cuts and the banks are trying to raise money and therefore not passing these rate cuts on to consumers.
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