Thursday, May 15, 2008

Housing crisis: Mortgage rates at 8-year high

By Harry Wallop and Edmund Conway Last Updated: 12:57AM BST 16/05/2008

Fixed-rate mortgage rates for new customers have hit the highest level since the start of the decade, figures have showed.
The average rate for a two-year loan, the most popular mortgage, have reached 6.64 per cent. This is the highest rate since 2000 and compares to an average rate of 4.34per cent two years ago.
This means people who took a typical home loan of £150,000 on this rate two years ago would be faced with the shock of seeing their average repayment climbing by £206 a month to £1,025 when they take out a new deal.

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