Changing mortgage margins

Last time the base rate was 4.50% was between 4th August 2005 and 2nd August 2006. Market conditions were clearly very different then but the margin charges on mortgages relative to the base rate reveal how times have changed.

David Black, Principal Consultant of Banking for Defaqto said: "Prior to today's base rate change it is sobering to look at how new mortgage offers have increased their rates relative to the Bank of England base rate. The average 5 year Base Rate tracker mortgage is now 1.07% higher relative to the bank base rate than it was back in July 2006 (the last time the base rate was at 4.50%)."