Cost of Fixed-rate deals rises.....Three major lenders have put up their mortgage rates as the cost of fixed-rate deals continued to rise. The move by Bradford & Bingley, which is its second increase in just under three weeks, sees the cost of its residential fixed rate loans rise by between 0.5 per cent and 0.7 per cent, while its lifetime variable mortgage rate has risen by 0.1 per cent. It also increased its buy-to-let deals by 0.3 per cent and its fixed rate self-certification mortgage rates have soared by 0.95 per cent.
More of us choosing to improve, not move.....
The struggling property market is fuelling a huge rise in home improvements as householders opt to make more of what they have rather than move. Homeowners who need more space but cannot sell their homes are extending them instead. And those who couldn't wait to move out and see the back of that old kitchen or those draughty windows are replacing them. With house prices predicted to fall by up to 35 per cent over the next two years, the instinct to sit tight is growing by the day. Instead of browsing the property pages and websites, restless owners are turning to builders and decorators.
Fed holds interest rate at 2%.........
The US Federal Reserve held its key interest rate at 2% last night as its concern about rising inflationary pressures outweighed worries about sluggishness in the American economy. The central bank last cut the federal funds rate in late April, having lowered it from 5.25% since last September in an attempt to prevent the credit crunch and housing slump tipping the world's biggest economy into recession. The Fed said: "The committee expects inflation to moderate later this year and next year".
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