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Mortgage rates to 'remain low for residential property'
28/07/10
Edited by Tom BardsleyBritons planning to purchase residential property over the coming months or even to remortage their present home may be happy to learn that one sector commentator believes mortgage rates are unlikely to rise soon.
Lucian Cook, director at Savills, said that interest rates look set to remain pinned at their record low of 0.5 per cent, meaning the main challenge facing house hunters is not the affordability of their loan, but the size of the deposit needed to secure it.
He commented: "What that does for the housing market is it continues to make mortgages very affordable, but of course that is no good for a lot of people if you can't access them."
According to the latest Ernst & Young Item Club forecast, interest rates are unlikely to see any significant increases until at least 2014.
The organisation stated that it will be necessary to keep the base rate low until this point if the country does not wish to see growth in consumer price index inflation.
