Mortgage customers reminded that base rate is not normal
Homeowners who are paying less on their mortgage deals due to the low base rate of interest have been reminded that this is not the norm.
Many Brits have been able to save and put the cash towards other things, such as bespoke conservatories or garden studios.
However, Your Mortgage warned that there is a "danger" that Brits could begin to think that the historically low rate is normal and forget that mortgage costs are likely to rise again.
Editor Paula John explained that interest rates have been kept at 0.5 per cent since March 2009 and cannot stay that low forever.
She said: "There is a danger that the longer we have this extremely low base rate environment, more people will start to think that this is the norm - which it isn't."
Recent research by Moneyfacts.co.uk showed that the average margin on a two-year fixed-rate mortgage has risen to 3.29 per cent from 1.28 per cent in the past two years, in spite of the low base rate.
Meanwhile, a report from Policy Exchange chief economist Andrew Lilico predicted that interest rates could rise to eight per cent within the next 24 months to help keep inflation in check.
Posted by Cheryl Stevenson
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