Mortgage rates between 3.5% and 4.5% will be the “new normal” even after base rates begin to fall, says the head of the UK’s biggest home loan lender.
“We have just come off a decade where mortgages have been in the 1.5% and 2.5% range,” Lloyds Banking Group chief executive Charlie Nunn told Sky News.
“The expectation that markets have is that interest rates won’t get below 3.5% — and that means that the new normal for mortgages will be in that 3.5% and 4.5% range.”
Nunn warned that these rates will not come to market until the Bank of England begins a series of base rate cuts.
The base rate has remained at a 16-year high of 5.25% since last August. The last time the central bank cut rates was in March 2020.
Read More