The chief executive of Lloyds Banking Group PLC (LSE:LLOY) has warned that mortgage rates are unlikely to return to the low levels seen over the past decade.
In a BBC interview, Charlie Nunn said while rates may continue to fall, the near-zero interest borrowing costs of the 2010s are unlikely to reappear.
The recent rise in mortgage rates followed an increase in interest rates to combat inflation caused by the Covid pandemic and the Ukraine war.
On Friday, the average two-year fixed mortgage rate was 5.36%, and five-year deals averaged 5.05%.
Nunn, talking to Laura Kuenssberg, acknowledged the financial strain higher borrowing costs have placed on homeowners but highlighted that only 40% of UK properties have mortgages. Additionally, he pointed out that mortgage arrears have been declining since December.
Nunn also criticized tech giant Meta for facilitating fraud through its platforms, urging more action to protect consumers. Meta responded, emphasizing the need for collaboration to combat fraud.