5
Jul
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.