Getty ImagesThe cost of borrowing money to buy a home is "unlikely" to return to the low levels seen over the past decade, the boss of the UK's largest mortgage lender has said.
Charlie Nunn, chief executive of Lloyds bank, said the bank expected mortgage rates to come down, but not to the near-zero rates they were during the 2010s.
The rate charged on new fixed mortgage deals has risen in recent years as a result of an increase in interest rates to try to slow soaring price rises, sparked by the Covid pandemic and Russia's invasion of Ukraine.
And while they have fallen recently after a cut in interest rates, brokers have warned the trend could come to "an abrupt halt".
On Friday, the average two-year fixed mortgage rate was 5.36%, according to financial information company Moneyfacts. A five-year deal was 5.05%.
Asked on the BBC’s Sunday with Laura Kuenssberg programme if "cheap" mortgage deals were ever going to come back, Mr Nunn said: "We do think they [mortgage rates] are going to continue to come down, but getting back to the level we saw in the last decade where interest rates were down at zero I think is unlikely."
Mr Nunn said the increase in borrowing costs had been "really challenging" for homeowners, but pointed out only about 40% of UK properties have a mortgage.
He added that the average income of a family with a mortgage was £75,000, and so "many of those families have been able to absorb" higher repayments.
"Mortgage arrears, people struggling with their mortgages, have actually been declining again since December," he told the BBC.
