9
Apr
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he observed, because products are being withdrawn regularly.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.