Lord Turner, Chairman of the Financial Services Authority, told the Treasury committee that mortgage rates would have to be higher to avoid future financial crisis. He said that the credit crisis had partly been precipitated by the easy availability of cheap credit and said that there was a “trade-off between financial stability and credit”. He said that history was likely to repeat itself and that there was a need to “to place as many guards and and a as possible”. This would operate them by controlling lending to some sectors of the economy and not across-the-board. This could include new loan to value limits for some kinds of mortgages.

Shadow Business Secretary Ken Clark has said that another term for Labour would cause the pound sterling to plunge and seriously damage Britain's credit rating. He said "Interest rates would hit the Government, the taxpayer and business while choking off a feeble recovery," he said. "Mortgage rates would rise sharply for millions."

Meanwhile Santander has announced that it is cutting the rate on its 80 percent LTV mortgage by 0.74 percent. As a result, new best buy mortgages will include a two year tracker starting at 3.25 percent and a two-year fixed-rate at 4.95 percent. For buyers seeking remortgages, there is a two year tracker for up to 80 percent LTV at 3.25 percent with the fee of £1495, free legals and free valuation. Santander with its two retail networks accounts for about 20 percent of all mortgages in the UK.

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