Mortgage rates set to rise - and saver returns to fall - as lenders struggle to cover £1bn cost of failed banks

Daily Mail
"Mortgage rates are likely to rise and savings returns to fall further because of the expense of compensating the victims of failed banks.Six out of ten building societies said they could be forced to raise home loan rates to offset the almost £1billion demanded in compensation payments.And 53 per cent said their savings rates may have to fall, research found. Savers have already seen returns dwindle to practically nothing after a series of savage interest rate cuts."