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Mortgage rates 'bound to increase sooner rather than later'
Posted by Craig Williams
Prospective homeowners in the UK have been warned that rates attached to mortgage products will inevitably rise in the near future.
According to Ed Stansfield, property economist at Capital Economics, people attempting to get their feet on the housing ladder in the coming months need to be aware of the fact that many banks and building societies will be hiking their charges as the country continues its recovery from the recession.
For the last 26 months, Britain has had a historically low base rate of 0.5 per cent, but Mr Stansfield has said anyone "buying anything on credit", such as a home loan, should not rely on this "exceptionally low level of interest" as it is likely to change soon.
"Just because you can afford the payments today doesn't necessarily mean that things are going to be the same in two, three or four years' time," he added.
Recently, the Federation of Small Businesses stated that the base rate will not go up until the third quarter of 2011.
17/05/2011 15:17
News category: Property