Woolwich: Mortgage servicing costs rise

08 September 2005
The price of servicing mortgages is rising according to new statistics released by the Woolwich.

The high street lender says that the price of a mortgage rose by 18.7 per cent as a ration of disposable income in August alone.

Woolwich head of mortgages Andy Gray commented: "Despite these increases the message to mortgage borrowers is that the cost of mortgages has been stable for some time but that we should expect the odd blip along the way."

"There are a number of reasons why there has been a jump and historically it tends to correct itself later in the year.

"Following the cut in interest rates at the beginning of August most variable rates were cut at the beginning of September and many people are on fixed rates which will not change, and therefore will not have impacted the August data."

Mr Gray said that the Woolwich's research indicated that July and August is among the most popular times for new mortgages.

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