5 Jul

Mortgage rates to 'remain affordable', says CML

Mortgage rates to 'remain affordable', says CML

Property investors will have access to "affordable" mortgage rates over the coming months, at least by historical standards, according to an expert.

Bernard Clarke, communications manager at the Council of Mortgage Lenders, said that there are clearly upward pressures at the moment, but nothing will change majorly unless there is a "very large degree of disruption".

One area where this could happen is as a result of developments in Europe, with countries like Greece in financial difficulty which has unsteadied the eurozone.

"The outlook for the moment is that the base rate will remain at the current low levels, but this does not necessarily determine the rates that lenders charge to borrowers - that is a function of how easy, difficult or expensive it is to raise funding," Mr Clarke noted.

He added that people need to anticipate what might be happening in the future, as mortgage rates will rise in response to the higher funding costs which are faced by lenders.ADNFCR-1222-ID-801400938-ADNFCR

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