Greek euro exit and UK mortgage rates.
Greece might be almost 1,700 miles away but UK mortgage rates could be significantly impacted by its likely exit from the euro.
Greece's exit from the euro is now being seen as inevitable given its level of debt and its downward spiraling economy
Both the newly inaugurated French president François Hollande and the German chancellor Angela Merkel, have commented saying that they would prefer for Greece to remain in the euro. However Christine Lagarde who is the head of the IMF has raised the possibility of orchestrating Greece's eurozone exit.
Charles Dallara who is the International Institute of Finance chief has said that a Greek exit could damage the rest of Europe catastrophically. The governor of the Bank of England, Mervyn King has come forward to suggest the UK have a contingency plan in place should this happen.
UK mortgage rates would inevitably be affected as banks resort to storing up their capital. The cost of funding would significantly rise meaning home-owners would be hit by yet more rate increases.
Lenders rates are already rising therefore would-be buyers looking to make a purchase, and existing mortgage holders looking for a more competitive deal, are advised to make a move soon or face losing out on a competitive offer.
For a up to date comparison of all UK mortgage rates currently on offer call Deal Direct.
