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| Britain |
| Lending rates ’must double’ to beat price crash |
| 2004-05-23 |
| UK home owners were given a grim warning last night that lending rates will have to double to prevent a crash in the housing market. The Council of Mortgage Lenders, which represents the UK’s banks and building societies, believes the small interest rate increases imposed by the Bank of England have been too little too late to avoid disaster. If the organisation’s prediction is borne out then the current base lending rate would go up from 4.25% to 8.5%, meaning the typical mortgage rate would soar from around 7% to 10.5%. That would immediately add hundreds of pounds to the price of monthly repayments. -----------snipped-------- |
| Posted by:Mark Espinola |