Interview with the Bank of England's Governor Andrew Bailey on the impact of the Covid-19 pandemic

The video discusses the current state of mortgage rates, highlighting that while variable rates have seen some reductions, fixed interest rates remain high due to lender caution. The Bank of England's term funding scheme aims to support banks in passing on rate cuts. The housing market is largely inactive, and lenders are cautious about high loan-to-value mortgages due to uncertainties in house prices. The video emphasizes the need for prudent lending practices amid market caution.

What is the current trend in mortgage rates offered by banks?

• Mortgage rates have significantly decreased.

• Mortgage rates have remained stable.

• Some mortgage rates have increased.

• Mortgage rates have been abolished.

What is the Bank of England's approach to support banks with low policy rates?

• Reducing the number of banks.

• Introducing a term funding scheme.

• Eliminating mortgage rates.

• Increasing the policy rate.

Why are lenders cautious about high loan-to-value mortgages?

• Due to the stable housing market.

• Because of the uncertainty in house prices.

• Because of high demand for such mortgages.

• Due to government regulations.

What challenge do individuals face when refinancing their mortgages?

• They encounter lower interest rates than before.

• They are not allowed to refinance.

• They face higher interest rates despite low market rates.

• They find it easier to refinance.

What is a key factor influencing prudent lending going forward?

• Stable house prices.

• High demand for new mortgages.

• Government incentives for lenders.

• Uncertainty about future house prices.