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Article: Mortgage costs are still rising despite the Bank's big freeze.
- Article from:
- Daily Mail (London)
- Article date:
- May 9, 2008
CopyrightCOPYRIGHT 2008 Solo Syndication Limited. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Becky Barrow
MORTGAGE costs will continue to climb today even though the Bank ofEngland held interest rates steady at 5 per cent yesterday.
One of the biggest lenders is increasing its rates, adding nearly [pounds sterling]900 a yearto the cost of repaying a typical mortgage.
The move by Alliance & Leicester comes as two City banks warned yesterday thatthe country's housing market is in the grips of recession.
Rising costs for the 11.8million homeowners who have a loan are contributing tofalling house prices.
Michael Saunders, economist at the bank Citigroup, said: 'Something like whatthe U.S. is experiencing in terms ...