Mortgage shock

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Wednesday’S Scotsman appeared in an RBS wrapper announcing its Help to Buy mortgage rate.

The fix is 4.99 per cent (!) for two years, with a rate of 4 per cent variable thereafter.

Unless the Bank of England is going to hold the base rate down forevermore, it is more likely that the variable rate will be much higher.

Borrowers who (according to the blurb) have known that their repayments would not change during the term of the deal may be in for a nasty shock. Will they be able to cope?

Frank Donald

Tantallon Place

Edinburgh