(click on the chart for a sharper image)
Mortgage rates have broken loose from the base rate. The Bank of England might have cut interest rates, but mortgage rates have kept on going up. Between January 2006 and April this year, the 2 year fixed rate, 95 percent LTV mortgage rate has increased by 198 basis points. Likewise, the 5 year fixed rate, 95 percnet LVT is up 170 basis points.
Even the standard variable rate has not been immune to this trend. Between August last year and this April, the spread between the base rate and the SVR rate increased by 38 basis points.
Higher rates; lower house prices.