HBOS predicts homeowners will pay more for loans - papers 3 October

"Looking forward, we can already see that mortgage pricing is starting to adjust to reflect increased wholesale funding costs," he told a banking conference in London. "Increased mortgage costs to consumers will inevitably lead to a slowdown in the mortgage market." Recent weeks have already seen price increases in some types of mortgages, particularly tracker products, offered by Abbey, Alliance & Leicester and Nationwide as well as HBOS's Halifax business. These loans are closely reliant on the short-term money markets, where lending rates have soared above the Bank of England's base ra...