Socialist Worker

Mortgages set for big rise

Issue No. 2048

Thousands of home owners face the possibility of being hit by increases in the cost of their mortgages, with average borrowers paying up to £120 a month more.

Two big City investment banks, ABN Amro and Bear Stearns, said this week that they expect the Bank of England base rate to rise to 6 percent this autumn, taking mortgages at the Halifax, Britain’s biggest mortgage lender, to 8 percent.

With many borrowers already stretched to the limit, such increases could result in a massive property slump, similar to that of 1992 when interest rates rose by 2 percent in a single day.

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Tue 24 Apr 2007, 19:09 BST
Issue No. 2048
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