Correct, but bear in mind that last year you could have bought a 25 year fix for something like 5%. That was guaranteed, contractual, if the bank loses as a result you still keep the keys, etc. The whole affair was underwritten by Big Finance so private house buyers could sign up without losing their shirts. Of course they didn't because they preferred the sound of £500 a month and see what happens to £1000 a month for the next 25 years, come what may.The mantra that anyone buying a house should allow for 6% interest rates (historical average) was pretty much derided the last few year and guess what...here we are...and alot of people are surprised.
House buyers these last few years took their eyes off the ball, that being the Principal mortgage amount they were signing up too....that's the number that matters and the 'monthly' at the time of signing is secondary.
A £500k bank charge over you head is still £500k no matter whether the interest rate is 1% or 10%. The banks have you by the short and curlys with that one single signature.
One day people will learn not to trust a word that comes out of Government Central Bankers mouths and to do their own research...
You can't buy a house based on blue skies forever thinking which is what's been happening. It was easy for the banks to look like they were your mates with ZIRP but the rubber hits the road now and Banks will be the winners here yet again...rinse and repeat.