Many mortgage lenders may be confused as to how to proceed if the base rate increases next year, an expert has predicted.
With standard variable rates generally between 3.5 and four per cent at the moment, the question remains as to whether they will continue with similar margins, said Andy Pratt, chief operating officer at Alexander Hall.
"If you went back five years ago and you said to me that base rate is half a per cent, what is standard variable rate? I would have said one and a half," he commented.
Mr Pratt emphasised that it would be "tricky" for lenders to keep increasing their standard variable rate products by the same amount in light of challenges faced in this economic climate.
The Council of Mortgage Lenders reported earlier this month that mortgage arrears and possessions continued to decline in the third quarter of this year. |
0 comments
