Research by Halifax, the UK's largest mortgage lender, has revealed that mortgage rates peaked 15 years ago and have never returned to that level.
The Standard Variable Rate (SVR) peaked at 15.4 per cent in February 1990 after a steady upward trend from 9.8 per cent in April 1998.
One of the major changes the mortgage market has undergone since 1990 is the introduction and continued popularity of fixed rate mortgages.
Halifax introduced its first fixed rate repayment mortgage in 1989, just before the all-time peak in rates.
What was once a market innovation is now one of the most popular ways to borrow, making up around 35 per cent of the new mortgage lending market according to the Council of Mortgage Lenders.
"Fixed rate mortgages have played an important part in helping to manage household expenses since they were launched just over 15 years ago," commented Craig Donaldson, head of mortgages at Halifax.
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