Mortgage pressures 'will ease next year'

Fri 23 Nov 2007 3pm

The new year will usher in better conditions for the nation's mortgage holders, an industry body has predicted.

According to the Council of Mortgage Lenders (CML), people with adverse credit are likely to be finding it particularly difficult to obtain a home loan at the present time, due to the credit crunch and general economic climate.

However, in a bid to "give some borrowers hope", the CML said that many analysts still expect the Bank of England to cut interest rates to five per cent by mid-2008. The base rate is currently set at 5.75 per cent.

CML press officer Sarah Robson commented: "It will be more difficult for people to get adverse credit mortgages since lenders are tightening their criteria.

"The general expectation at the moment is that there will be a reduction in interest rates next year. That will ease the pressure on some borrowers."

According to the minutes of this month's monetary policy committee meeting, the Bank's officials voted by seven to two in favour of holding interest rates at 5.75 per cent. The next decision will be made on December 6th.

All information and material on this website is for information only and should not be construed as advice designed
to meet the needs and the circumstances of a particular customer, please seek professional guidance as appropriate.

© Copyright 2006-2009, Trumpo Limited. All rights reserved. Trumpo and the "Trumpo" logo are registered trademarks of Trumpo Limited.