Mortgage rates are not expected to return to the low levels seen over the past decade, according to Lloyds chief executive.
Lloyds bank boss Charlie Nunn said while rates will come down, they are “unlikely” to reach the levels seen during the 2010s.
Rising interest rates designed to slow rocketing price rises caused by the pandemic and war in Ukraine have led to rates chargedon new fixed mortgages to go up in the last few years.
While rates have dropped more recently following lowered interest rates, experts warn the trend may come to an “abrupt halt”.
Speaking to the BBC, Mr Nunn said: "We do think they [mortgage rates] are going to continue to come down, but getting back to the level we saw in the last decade where interest rates were down at zero I think is unlikely."
The Lloyds chief executive acknowledged rising borrowing costs were “really challenging” for homeowners, but highlighted that only around 40% of properties in the UK have a mortgage.
Mr Nunn went on to say the average income of a family with a mortgage was £75,000, so “many of those families have been able to absorb” the higher repayment rates.
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