Rates on the Up

The housing market shows no sign of improvement. With the global financial situation becoming seemingly more unstable every day, homeowners are set to bear the brunt of the problems with the economy.

HBOS have announced today that their mortgage rates will increase by up to 0.49% putting added pressure on those who need to remortgage or get on the property ladder for the first time. They have also announced that they will not offer mortgages to those with small deposits and are also reducing the amount of mortgage deals previously on offer.

The intention of HBOS to raise its rates is likely to be followed by other banks as inter-bank borrowing has stalled with banks hoarding cash. Last week HSBC raised its rates by 0.3% for buyers who had small deposits. First Direct, the online and telephone bank owned by HSBC raised its rates by 0.20% for its two year fixed rate deals which were only introduced a fortnight ago. Woolwich, owned by Barclays raised the rates of its fixed rate mortgages by 0.35%.

The impact of this on homeowners and homebuyers are mortgage rates that are ever increasing and therefore more and more difficult to keep up with. Alongside the stagnant housing market, where selling a home has become a long drawn out process with little hope of a sale, an increase in mortgage rates will certainly have a knock on effect for homeowners and buyers.

After the collapse of American giant bank Lehmann Brothers last week, banks have struggled to keep up with Swap rates and the cost has shifted onto homeowners. Those who have small deposits have little chance of getting into the property market, with banks continuing to go after buyers with larger deposits.

The tenuous global financial situation will continue to impact the UK and directly affect mortgage rates in the UK. Homeowners struggle to keep to their payments and those who wish to sell their homes and release equity face a constant battle where their houses cannot be sold.

If you are facing difficulties and are thinking ‘I want to sell my house quickly!’ but are finding this to be near-impossible, Swift Capital can help. We will buy any house in any condition and can complete in a matter of days, yes, that quickly!

We are dedicated to ensuring you a swift sale with low hassle. If you need to release equity from your home fast to pay outstanding debts or mortgage repayments, we are able to help. Contact Swift Capital today, we could really stop all that worrying for you.