9 Apr

Figures 'suggest rates will drop'

Figures 'suggest rates will drop'

Statistics released by the Council of Mortgage Lenders this week confirm that consumers think interest rates are to drop soon, haart has said.

The figures stated that the number of fixed-rate deals taken out by homeowners has dropped, something that has led the financial services firm to contend that the possibility of rate rises in 2008 will be "slim".

Consumers are starting to take advantage of any future trends by moving towards variable-rate products instead, it highlighted.

But lower rates do not necessarily mean that banks will in turn decrease their own rates, operations director at Spicerhaart Financial Services Steve Cox asserted.

"Affordability will not increase until something is done by the Bank of England to increase liquidity levels to ensure that the demand for consumer borrowing is met," he commented.

Homeowners must also continue to analyse and research the market, he observed, because products are being withdrawn regularly.

With the removal of Abbey's 100 per cent mortgage, first-time buyers will find it more difficult to get on the property ladder, Louise Cuming from Moneysupermarket.com recently observed.ADNFCR-1222-ID-18545113-ADNFCR

Cookies We use cookies to ensure that we give you the best experience on our website. To find out more about our cookies policy, see our cookies policy here or in the footer.