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B&B raises its rates for new borrowers
06.06.08
Troubled lender Bradford & Bingley increased its mortgage rates for new borrowers today, spelling more misery for the housing market.
B&B put up rates on its standard residential, buy-to-let and self-certification mortgages by between 0.05% and 0.55%.
It said the move was part of its "normal business activity" after an increase in the cost of raising funds on the money markets.
Libor - the inter-bank lending rate - is up from 5.863% to 5.885%, well above the Bank of England interest rate of 5%.
This week, B&B issued a dismal profits warning.
