UK mortgage rate for new borrowers

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RubberRims's picture
RubberRims
Status: Silver Member (Offline)
Joined: Nov 22 2008
Posts: 145
UK mortgage rate for new borrowers

What will happen when interest rates finally start moving with growth. 

I can see how things are going to get harder, and harder for people who perhaps wont see this coming. For the moment Lloyds acknowledged that it needed to introduce a higher SVR to make more money from its mortgage lending, as the cost of raising mortgage funds had become considerably more expensive and is no longer linked purely to the Bank of England's bank rate. They are now raising their standard variable rate from 1 June. New borrowers, or current ones who switch deals, will have to revert to an SVR without any ceiling, currently set at 3.99%. Henceforth they would be paying 4.95% rather than 3.5%.

In the UK the Consumer Prices Index (CPI) measure, inflation hit 3.7% - well above the target of 2% and the highest rate since November 2008. On the Retail Prices Index (RPI) measure, which includes housing costs, inflation was up to 5.3% - its highest rate in 19 years.

Given that Lloyds so early this year is raising it's rates, i can only imagine things may becoming alarming when the Bank of England rates finally begin to raise. 

that1guy's picture
that1guy
Status: Gold Member (Offline)
Joined: Jan 11 2009
Posts: 333
Re: UK mortgage rate for new borrowers

true, and it is my understanding living here, that all home loans are adjustable rate loans. Which will just WACK the economy here big time. Lord knows I have no plans on paying 1500 pounds a month, LOL.............(just a number i pulled out of my butt, but Im sure not far off if interest rates rise like they will...)

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