Janice Small: Banks are ripping off house purchasers, leading to stagnation in the housing market and new homes threaten our countryside which will lie empty

Janice Small, PPC for Batley and Spen, has accused banks and building societies of ripping off hard-pressed first-time buyers and existing homeowners and is contributing to the stagnation of the housing market.

She was alerted to extortionate interest rates being charged by a number of people who have contacted her because they are finding that although interest rates are at a record low the mortgage lenders are not passing on the rate reductions.

Mortgages at are being offered at 80% of purchase price at a rate of 5.8% and in some cases, 7.8%.

Janice said: “It is no wonder that the housing market is stagnant as people cannot afford these rates. Added to that, the proposed housing numbers for the area which will decimate our countryside which will lie empty because no one will be able to afford to buy them.

“The banks have been bailed out by the taxpayer and should start acting like responsible ethical bankers, working on behalf of their shareholders, the public. Gordon Brown has not got to grips with them – he is the failed chief executive and if he was in charge of a public company he would be sacked. It is time to get a grip on the banks and building societies.