The end of super-cheap mortgages is coming – The Times

When interest rates were slashed from 5.5 per cent to 0.5 per cent during the financial crash 13 years ago, many assumed that the drop would be temporary.

The UK had never had a base rate so low, and because rates had fluctuated between 4 and 7 per cent since the early 1990s, analysts and bankers alike assumed the central bank would increase the rate again within a few years.

Due to the slow economic growth that followed, however, the Bank of England’s base rate stuck at 0.5 per cent for seven years before a small fluctuation and then dropped to a record low of 0.1 per cent last year as the UK grappled with the coronavirus crisis.

All this has gone hand-in-hand with a

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