Mortgage rates & the aims of policy
Mr Deputy Speaker, our commitment to reduce the deficit is keeping interest rates low.
In this Budget, we take measures to ensure that the benefits of those low market interest rates are felt across our economy.
Those who would put all that at risk by deliberately adding to our deficit must explain this.
Just a one per cent rise in our market interest rates would add £10 billion to mortgage bills every year.
One per cent would mean the average family with a mortgage would have to pay £1,000 more.
Mortgage rates for new borrowers are continuing to rise.
At least 10 lenders, including some of the UK’s biggest, have announced rate rises in the past week for people taking out new deals.
Also, Bank of England figures show that the average two-year fixed rate deal, with a 25% deposit, has risen from 2.9% last September to 3.45% in March.
I thought keeping interest rates down as the central aim of Treasury policy?