Barclays raise interest rates
Barclays have announced they are to raise the cost of their fixed rate mortgages even though the Bank of England had decided to leave the current rate of 0.5% unchanged at last weeks month meeting.
A popular product for homeowners with at least a 40 per cent deposit, their 3.99% four year fixed will be pulled on Friday 17th. It will also increase the cost of its three and five year fixed rate deals by up to 0.4%. The rise in the interest rates have been caused by the cost of borrowing money on the wholesale markets which the bank says has risen form 3.12% to 3.17% over the past few weeks.
It is one of the first large lenders to announce an increase in their fixed term rates and it is expected that others will follow. The volume of would be borrowers accepted by lenders has decreased. During 2009 8.8% of applications have failed to satisfy lenders’ criteria so far compared to 2.3 % in 2007.
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