LONDON (MNI) – Interest rates on UK mortgages nudged higher in
March, in some cases hitting levels not seen since mid-2010 or late
2009, according to Bank of England data.

The Bank of England’s Monetary Policy Committee is expecting a
boost to consumption as the squeeze on real incomes eases due to
declining inflation but these data suggest mortgage repayments will add
to pressure on household finances.

The average interest rate on a tracker mortgage climbed to 3.6% in
March from 3.5% in February, its highest level since July 2010.

On a 2 year discounted mortgage at 75% loan-to-value the average
interest rate rose to 3.25% in March from 3.23% in the previous month,
the highest level since December 2009.

The average rate on a standard variable mortgage nudged up to 4.13%
from 4.12%, although this rate was lower than the 4.16% seen in January.

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