Mortgage borrowers are already benefiting from decreased rates, according to the Council of Mortgage Lenders (CML).

The global credit crunch led to lenders across the UK increasing mortgage rates but the CML said that the trend is beginning to reverse.

However, spokesperson Sue Anderson pointed out that borrowers should not expect big changes over night.

"We''re not going to get back to a sudden return to the kind of product pricing that we had before the credit crunch," she told Channel Four''s News at Noon.

"But we are beginning to see some lenders anticipating lower costs of funds and beginning to feed that through in part of their product range.

"But it is going to remain a mixed picture; we''re not going to see that universally," continued Ms Anderson.

Reduced mortgage interest rates will be good news for housing market as more new buyers will be attracted to purchasing property.