The eurozone crisis has been blamed for the rising cost of UK mortgages, which have gone up almost £450 in the past six months.
Despite the base rate being stuck on 0.5% as it has been for the past three years, home loan costs have been creeping up and lenders are saying that the Euro-crisis is to blame. Bob Pannell, chief economist at the Council of Mortgage Lenders, says that the current uncertainty with the eurozone is undermining the economy as well as the housing and mortgage markets.
The average two-year fixed-rate mortgage six months ago was 4.24%, but that has now risen to 4.67% , meaning that someone with a home loan of £250,000 will be paying an extra £732 more per year. The figures come shortly after several high street lenders, including the Halifax, moved their rates up and further rises are expected, despite the base rate being stuck at an all-time low, because of the way that banks now fund mortgages. Experts predict that rates will continue rising until there is a resolution to the chaos now afflicting the eurozone.