What the papers say - 9th July 2008

The housebuilder Persimmon announced yesterday that it will cut 1,100 jobs, as it prepares for the housing market to deteriorate. The Times noted that other homebuilders, such as Redrow and Barratt will also make redundancies in line with the current crisis in the mortgage markets. According to the Financial Times however, loans for house purchase rose by 4 per cent in May, whilst loans for remortgaging fell by 14 per cent.

The Daily Express stated that mortgage lenders are still not passing on rate cuts to customers, despite swap rates being at their peak more than three weeks ago, whilst the Daily Mail looked at the new mortgages being offered by Northern Rock. The bank if offering new two-year fixed-rate loans, at 6.39pc for house purchase and 6.49pc for remortgages, both with a £995 fee. Finally, the Daily Mail also reported that high arrangement fees for remortgaging are dissuading so-called ‘rate tarts’ from switching lender.

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