Friday 5th October 2007
November could see a decrease in the base rate being put into effect by the Bank of England, it has been suggested.
According to the Council of Mortgage Lenders (CML), the bank may opt to act early in light of continued financial pressures.
The prediction contradicts that made by Global Insight chief UK and European economist Howard Archer, who anticipates no changes to be made in the run-up to Christmas.
Instead, he expects that rates will be cut twice in the first six months of 2008.
But Michael Coogan, director general of the CML, asserts: "We did not expect the Bank to cut rates [this month], but we do hope for and anticipate a cut in November.
"Even this is not a certainty though, so borrowers should continue to plan for rates at or around current levels."
He adds that the mainstream mortgage market is stable, while fixed-rate deals have begun to improve in recent weeks.
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