Mortgages: Interest rates ‘may not come down’
5 November 2008
People looking for a mortgage may have been disappointed to hear a leading banker suggesting mortgage rates might not come down in line with Thursday’s expected base rate cut.
David Hodgkinson, chief operating officer at HSBC, said: “Clearly if interest rates are down significantly, the rates for borrowing will go down. But I am not going to say it is absolutely linear, because it depends on the particular [situation] and the risk.”
He added that there may be some “stickiness” with regard to lenders lowering interest rates in line with the base rate.
A spokesperson for Think Money said: “As we have seen in the past, the effect of any base rate cut on mortgage rates will largely depend on other market conditions and lender confidence.
“We could continue to see a relatively slow-moving mortgage market for some time, so for anyone considering buying a home, it’s worth seeking professional mortgage advice.”
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Tags: mortgage, mortgages, mortgage rates
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