Iona was on Radio 5 Live this morning talking about interest rates.
“If you have managed to overcome that initial barrier of getting a deposit together you have lucked out, as we have been in this halcyon era of record low interest rates, whereas the older generation would look back on an era when rates rose as high as 15%. But these good times are probably coming to an end, Mark Carney is sending out hints – though there has been as aspect of boy cries wolf, we have had regular rumours that the base rate will keep rising and we will get back to that ‘normal’ era…but if you have been on a standard variable rate mortgage say a 25-year SVR mortgage at 4.6% you could see your rate rise by £1400 a year. Getting on the housing ladder remains a compelling aspiration and you could argue that the older generation are passing on a lot of their wealth to the millennials and the younger generation via the bank of mum and dad because they know young people have a tough time.”
