
Interest rate cut important for mortgage market

Hints by the Bank of England that it could be set to reduce interest rates next year will help to reduce the problems faced by people coming to the end of their fixed term mortgages, according to Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors.
However, in the short term he envisaged problems for some homeowners looking to secure a favourable new mortgage deal, despite the Bank's actions.
"An early easing in the liquidity squeeze seems improbable despite recent action from the Bank of England. As a result, we expect that some would-be-buyers will struggle to get the necessary finance." Mr Rubinsohn said.
"We expect base rates to be lowered by at least another half point during the first half of 2008," he added. "This will provide an important layer of support for the housing market, helping to offset the threat posed by the increase in mortgage outlays as the resets for up to 1.4 million homeowners fall due."
Yesterday (December 20th), the Council of Mortgage Lenders revealed an eight per cent decline in gross mortgage lending in November.

Related Articles
UK Financial Solutions New Mortgage Sourcing System Goes LiveLatest News:
Discount Life Insurance Quote System Launched
A new life insurance quote system available through the UK Financial Solutions Website went live today offering up to a 28% reduction on standard prem...
Published: 27-May-2010
UK financial Solutions Switches to British Insurance For Mortgage Protection
UK financial Solutions has partnered with British Insurance today to embed their online Mortgage Protection Insurance quotation and application syst...
Published: 17-May-2010
UK Financial Solutions New Mortgage Sourcing System Goes Live
UK financial Solutions has partnered with Evaluate Technologies to embed their online mortgage comparison service that ensures you get the best mort...
Published: 15-Sep-2009
