Positive mortgage news outweighs Moody’s downgrade.

It is thought that recent news of the release of cheap mortgage funding is likely to have more of a positive impact than negative news of Moody's downgrade of 15 global banks including RBS, HSBC, Barclays, and Lloyds.

The announcement by the Chancellor and BoE Chairman to release over £100 billion in cheap funding for small businesses and cheap mortgages is seen by some as far more significant.

Further positive mortgage news is that both the Libor and swap rates have reduced by up to 0.28% which could lead to a reduction in rates. It is expected that any rate reduction could be balanced by news of Moody's downgrading which could mean rates many hold steady.

This is a long way from the recent BoE warning to home-owners that due to the escalating eurozone crisis mortgage rates could rise significantly over the summer. Already some lenders such as Virgin have cut their fixed rates.

It is believed that the recent downgrades have for the most part already been factored into the market. Moody's announced earlier this year their intention to re-evaluate bank ratings and so the recent downgrading has come as no surprise.

The rating agencies were highly respected, however since the credit crisis revealed their failure to understand market dynamics their power has waned significantly. Ratings agencies now seen to follow the market and not lead it.

With fluctuating mortgage rates and changing criteria you are recommended to contact Deal Direct who will source on your behalf a highly competitive offer.

We are fully up to date on all mortgage market movements which ensures we are well placed to advise you on the best deal for your circumstance.

Call one of our advisers for a quote today.

Contact Deal Direct today.