31 October 2007
Mortgage brokers are feeling more positive about the prospects of a cut in the Bank of England base rate in the coming months, new research shows.
Almost 90 per cent of brokers in the UK now believe that interest rates have peaked, with 43 per cent claiming that they believe that rates will fall as soon as February.
The study by GE Money Home Lending indicates this optimism is having an impact on the advice brokers give consumers, with discounted and tracker rates beginning to increase in popularity.
Fixed rates accounted for almost three quarters of all mortgage products being recommended by brokers since August this year.
But the number of brokers planning on advising discount and tracker products in the next three months has risen by 120 per cent, while fixed rates – although still accounting for the majority of sales – are expected to fall by a third.
GE Money Home Lending, head of mortgage marketing, Gerry Bell said: “Our latest research shows an element of growing confidence from brokers, with nine out of 10 believing that interest rates have already peaked at their highest level.
“At the same time the research has found that almost half of consumers (43 per cent) are worried about securing a good mortgage or a re-mortgage due to the recent credit crunch.
“It is therefore crucially important that lenders continue to work closely with brokers to understand their customers’ needs and concerns, ensuring we are providing a range of affordable products options which will allow them to make informed choices in the current environment.”
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