26 Jul

Low mortgage rates 'good news for homeowners'

Low mortgage rates 'good news for homeowners'

Findings that claim mortgage interest rates will remain low have come as good news to homeowners.

Earlier today (July 26th), the Ernst & Young ITEM Club forecast suggested that interest rates are unlikely to rise for another four years.

It claimed that the Bank of England base rate is set to stay at 0.5 per cent until the end of 2013 to enable CPI inflation to remain above one per cent.

Director at Savills, Lucian Cook, said that this is will create good opportunities for homebuyers looking for houses for sale in the UK.

He said: "What that does for the housing market is it continues to make mortgages very affordable."

Mortgage adviser John Charcol reported last week that variable rate deals were still the most common mortgages taken out, with 75 per cent of homeowners choosing them over fixed-rate loans.

Director of marketing Drew Wotherspoon said that the low interest rates on variable-rate mortgages had discouraged homeowners from fixing loans.  ADNFCR-1222-ID-800005484-ADNFCR

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