Mortgage rates 'too high'

by Christopher Evans

Home buyers taking out loans for purchasing property are being charged too much by banks, Assetz has said.

Stuart Law, chief executive of the property investment advisory firm, said that mortgage rates in the UK are too high at the moment.

The government must work with these banks and encourage them to improve lending to would-be buyers, he insisted.

"It is down to the government to be clear whether they are happy with the banks making a big profit or actually intend to do anything about it," Mr Law added.

"The banks themselves want to make as big a profit as they can make. It really all sits on the government's desk because they own the vast majority of the banks."

Earlier this week, a report from the Bank of England suggested that lenders were charging higher rates for borrowing than the benchmark interest rate it had set.

According to the bank, lenders' rates have not fallen along alongside the interest rate and have even risen in some cases.

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Published on: September 24, 2010

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