Mortgage cost and interest rate rise prediction

8 March 2012 Last updated at 09:01 ET Help

Mortgages will start to rise - and keep rising - despite the Bank of England keeping the base rate at 0.5% for three years, said Allister Heath.

The City AM editor said the combination of the eurozone crisis and banks trying to attract savers meant there was a "mortgage time bomb" set to go off.

He warned the days of low mortgages were coming to an end and spoke of a "renormalisation" of interest rates in the UK.

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