LONDON, March 29 (UPI) -- The cost of an average home mortgage in England has risen in recent days by $298 a year amid a shaky financial market, an analysis showed.
The Daily Telegraph reported turmoil in the financial markets has prompted banks to raise their interest rates on a daily basis, even though the Bank of England has cut interest rates twice since December.
The newspaper said the average interest rate on a two-year, fixed-rate mortgage has increased in the last 10 days from 6.15 percent to 6.29 percent.
The higher rates mean that a typical homebuyer with a $298,500 mortgage will pay $310.44 more a year in additional finance charges.
"The credit crunch has well and truly hit the ordinary consumer looking to get a mortgage or run a business. The tighter terms in the financial markets are now affecting the man in the street," said economist Ruth Lea.
