Mortgage rates 'unlikely to return to previous lows'

Charlie Nunn, chief executive of Lloyds Bank, says the cost of borrowing for home purchases is "unlikely" to return to the the low levels seen in the past decade. He noted that while mortgage rates are expected to decrease, they will not reach the near-zero rates of the 2010s. Currently, the average two-year fixed mortgage rate stands at 5.36%, with a five-year deal at 5.05%. Nunn highlighted that "mortgage arrears... have actually been declining again since December," indicating some financial stability for homeowners. However, first-time buyers are facing challenges in securing affordable deals, while 1.6m existing borrowers have fixed-rate deals expiring this year. Nunn emphasised the need for "real clarity and purpose" regarding government investment plans to encourage economic growth. 

BBC News (14/10/2024)