Mortgage shock

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.

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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