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UK mortgage rates could top 8pct: Economist

Posted on 25 May 2011

Home owners could be in for a nasty surprise as borrowing costs return to normal over the medium term, according to Capital Economics.
“There is plainly a great deal of uncertainty around what will happen to spreads on mortgage interest rates when Bank Rate does eventually rise. But if current spreads were maintained, average mortgage interest rates could rise to 8 percent,” Paul Diggle, a property economist at Capital Economics, wrote in a research note……………………………………….Full Article: Source


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