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the only way is up for mortgage rates

Published: 12/05/2009

East Anglian Daily Times (Essex) (Main)
Eight weeks after the base rate hit a mind-boggling 0.5%, last week’s decision by the Bank of England’s Monetary Policy Committee (MPC) to leave rates unchanged, hardens the consensus that mortgage rates go one way from here – up.

 

On the way down, tracker loans were a smart move for borrowers, shrinking monthly repayments close to zero in some cases.

 

Andrew Hagger at Moneynet.co.uk isn’t so sure. “There is a feeling trackers won’t look so good once rates move up again. New trackers around 2.5% over Base mean a rate of 5.5% if Base rate gets back to 3%,” he says.
 

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Last Updated: 11-02-2012