The remortgage market may also see more moderate activity in the aftermath of the bank of england's decision. Nevertheless, we believe that another interest rate rise could have a more marked impact on activity and price pressures than many people are expecting. Also the decline in spending power clearly shows that the consumer is by no means ready to cope with a rise in interest rates".

Relatively low interest rates mean that people pay on average 16 per cent of their income in mortgage interest payments instead of 27. Mortgage lending breaks the £1 trillion barrier. Mortgage rates might perhaps be 0%. morgage point Week repo rate 10- year gilt rate building society average mortgage rate year ending may 1992 10. Two per cent of mortgage borrowers - equivalent to 232, 000 homes - said the rate rise would make them reconsider withdrawing equity. Paul hemingway, mortgage manager at direct line financial services said. What happens if interest rates fall to zero?

The cml insisted yesterday that the level of mortgage lending is 'sustainable' and that the housing market is in 'fundamentally robust shape. This is a slightly amended version of an article that first appeared in the february 2003 edition of the mortgage finance gazette. The bank of england has not increased interest rates for two years, but this week's news that inflation has jumped to 2. Is getting a mortgage with a friend a recipe for disaster?