Prices keep rising
Property prices have risen for the third month running and will continue to rise for the next few months at least, the big test will be what happens when the summer rush is over and we come back to earth. Still its nice to have some good news for a change!
Other good news is that lenders have been criticized for their high charges, adding an average of 2.6% onto most mortgages. Chancellor Alistair Darling has pledged to take action against lenders breaking agreements to ease the problems caused by the financial crisis, small businesses and home owners have been particularly hit and now the Chancellor has grilled bank bosses about high rates. We should be in a good bargaining position since the UK taxpayer owns significant chunks of the industry now!
With the low mortgage rate, lenders are complaining that they are making less money than ever but have been criticised for profits that are well up on this time last year. The actual cost of lending has risen and 4 out of 10 lenders are complainig that their margins are lowere than ever before and they cannot pass on the low mortgage rate with cutting something else. At least the government is taking up the consumers point of view at last!!