Onwards and upwards with mortgage rates - 2004-02-06
As predicted by almost everyone, interest rates were duly increased yesterday by 0.25 points to 4%. This is only the second increase in four years, ending a remarkable period of stability.
The reason is simple: too much money chasing too few houses, a situation that will not change until the government either persuades others to build houses or encourages local councils to do it. If house prices continue rising at double-digit rates, then the small rise in mortgage payments will easily be offset by more capital gain.
Read the full story at Guardian Unlimited