Mortgages and interest rates

clayton16749

Hope this is in the right section...


There seems to be an article every day saying how the bank of England will raise interest rates sooner rather than later. How significantly will this effect mortgage rates?


Nobody has a crystal ball I'm sure, but before the economy went the wrong way and interest rates were at 5% (were they 5% in 2007, I can't remember?) what was the typical mortgage rate?

Thrugelmir

Pre the credit boom era SVR's were normally 2% above base.

Since 2008 lenders have been saddled with higher regulatory costs, levies and tax amongst other costs. So likely average rates will be higher than the 2% level.

Average base rate in the decade before the crash was 6.5%.

So taking into account what the BOE's current line is. In the medium term rates of 6% - 7% would appear to be on the cards. Though this could well change next month.............

amnblog

Fixed mortgage rates are available if you are concerned about base rate rises.

You can get a sensible fixed rate for a five year period with the majority of lenders.