Loans and Finance

Loans and Finance

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News and information about loans, money, debt, finance and business issues.

Tuesday, February 26, 2008

Nationwide Puts Up Rates

As the effects of the self induced banking credit crunch continue to ripple through the economy as whole, Nationwide has told customers wanting a loan for over 75% of a property's value that they will have to pay higher rates of interest to cover the increased risks.

Nationwide has raised interest rates on deals above 75% by 0.2%.

Whilst this will hit first time buyers the hardest, it is a logical decision in the face of a faltering property market; building societies are not charities, they have as much right to make a profit as any other financial institution.

The increase in rates will also penalise existing customers, who have mortgages over the 75% threshold, and who are looking to remortgage. Statistics indicate that the average deposit in the UK is 20%.

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