Ten years ago, the Bank of England interest rate sat at 4.75% Now? Now it sits at the unhappily low rate of 0.25%. To put this in perspective, on a £150k mortgage over 25 years, today’s payment would be £516 a month. Ten years ago, the cost would have been £855. This equates to a 66% difference – presenting a considerable change which will affect the affordability of the consumer.
Losses need to be anticipated from businesses which don’t consider changes, such as a change in interest rate.
