Mortgage brokers expect further rate cuts in 2008

More than two-thirds of mortgage brokers expect the baseline interest rate to end the year below its current level of 5.5 per cent, according to new research.

A survey carried out by GE Money Home Lending revealed that 70 per cent of brokers predict rate cuts, with 61 per cent expecting the Bank of England to leave rates between five and 5.4 per cent.

Just one in ten of those surveyed envisaged sufficient cuts to take the interest rate below five per cent by the end of the year.

"Despite the January decision to hold, our latest research reveals brokers expect the Bank of England base rate to fall throughout 2008 - many of which believing it will fall below five per cent," said Gerry Bell, head of mortgage marketing at the company.

"Consumers and brokers alike will be looking for a reduction in interest rates to ensure property purchases remain affordable," he added. "Homeowners with a fixed rate mortgage that is set to expire in the course of 2008 will be hoping any cut in rates comes in the first quarter."

In the wake of its research, GE Money Home Lending has launched a new three-year discounted rate Near Prime mortgage, offering an interest rate of between 7.14 per cent and 7.34 per cent.

Related Articles

Britons with mortgages should insureNorwich Union withdraw unemployment coverGrab cheap mortgage rates nowExclusive fixed rates from SkiptonCoventry reduces fixed rate mortgages