Mortgage interest costs across the UK could increase by an average of £1,700 if Scotland were to become independent, according to the latest Treasury estimates.
The calculation in the 52-page Treasury report, United Kingdom, United Future: Conclusions of the Scotland Analysis Programme, was based on an estimate of first-year repayments on a 75% LTV mortgage.
According to the research by thinktank the National Institute of Economic and Social Research, sovereign interest rates could go up by 1.65 per cent if Scotland were to vote for independence.
It also estimated that, were Scotland to renege on its share of the national debt as SNP leader Alex Salmond has threatened, mortgage interest repayments could rise by £5,200.
The report said: “The UK government believes there are many reasons why Scotland should stay in the UK. But it also believes in Scotland’s right to make its own choice.”
Adviser view
Jeremy Edwards, corporate director of Leicester-based Bankfield Financial Advisers, said: “I know quite a few landlords who would find themselves in severe difficulty if there were even a slight rise in interest rates.”
