Thursday 27th September 2007
Interest rates have only a "minimal chance" of breaking the six per cent barrier, a John Charcol spokesperson predicts.
Technical manager Katie Tucker advises that the credit crunch has made it less likely that the Bank of Englands monetary policy committee will raise rates beyond their current 5.75 per cent level.
"The silver lining for mortgage borrowers in this clouded sky that is the credit crisis will be the minimal chance of the base rate rising," she observes.
Ms Tucker adds that "it is now more a matter of when the bank base rate will start to fall".
She urges consumers looking to obtain a tracker mortgage to do so quickly as a number of lenders have withdrawn such packages from the market.
Meanwhile, new figures from the British Bankers Association reveal consumer lending fell in August, when compared with statistics from 2006.
Despite a rise in property prices, the number of mortgage approvals for house purchases fell by 14 per cent year-on-year and the overall value of such loans by seven per cent over the same period, the organisation asserts.
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