26
Jul
Low mortgage rates 'good news for homeowners'
Findings that claim mortgage interest rates will remain low have
come as good news to homeowners.
Earlier today (July 26th), the Ernst & Young ITEM Club forecast
suggested that interest rates are unlikely to rise for another four
years.
It claimed that the Bank of England base rate is set to stay at 0.5
per cent until the end of 2013 to enable CPI inflation to remain
above one per cent.
Director at Savills, Lucian Cook, said that this is will create
good opportunities for homebuyers looking for houses for sale in
the UK.
He said: "What that does for the housing market is it continues to
make mortgages very affordable."
Mortgage adviser John Charcol reported last week that variable rate
deals were still the most common mortgages taken out, with 75 per
cent of homeowners choosing them over fixed-rate loans.
Director of marketing Drew Wotherspoon said that the low interest
rates on variable-rate mortgages had discouraged homeowners from
fixing loans. 