Mortgage brokers predict base rate cut
Wed 31st Oct, 12:44:50 GMT
Almost fifty per cent of mortgage brokers believe that the base rate of borrowing is set to fall over the coming three months, according to new research from GE Money Home Lending.
The loan company also reported that nearly nine in ten brokers think interest rates have now peaked at their current level of 5.75 per cent, reflecting widespread optimism among professionals that the industry has succeeded in weathering the financial turmoil of recent months.
In spite of the predicted downturn in interest rates, however, 42 per cent of consumers remain concerned about their ability to secure a mortgage or remortgage - primarily due to the credit crunch that followed on from the US sub-prime crash.
Gerry Bell, head of mortgage marketing at GE Money Home Lending, stressed that the discrepancy in confidence between lenders and borrowers added to the need for brokers to work more closely with their customers in providing suitably attractive fixed products.
As early as mid-September, the Bank of England was reporting that fixed-rate mortgages rates were falling in anticipation of a rate cut.
The loan company also reported that nearly nine in ten brokers think interest rates have now peaked at their current level of 5.75 per cent, reflecting widespread optimism among professionals that the industry has succeeded in weathering the financial turmoil of recent months.
In spite of the predicted downturn in interest rates, however, 42 per cent of consumers remain concerned about their ability to secure a mortgage or remortgage - primarily due to the credit crunch that followed on from the US sub-prime crash.
Gerry Bell, head of mortgage marketing at GE Money Home Lending, stressed that the discrepancy in confidence between lenders and borrowers added to the need for brokers to work more closely with their customers in providing suitably attractive fixed products.
As early as mid-September, the Bank of England was reporting that fixed-rate mortgages rates were falling in anticipation of a rate cut.
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