UK mortgage rate predictions. What do analysts say will happen next?

UK mortgage rate predictions are hard to make. Earlier in the year forecasters predicted doom and gloom. Mortgage-holder were advised rates were to go up and were warned to prepare for a tough time.

Since this warning the Government has released cheap funding for lenders and both Swaps and the Libor have fallen. August, far from being gloom and doom, was a month which saw several historically low rate deals released. Proof that UK mortgage rate predictions are really just a best guess?

With access to cheaper funding the question is are lenders rates set to go even lower?

Mortgages rates have fallen in the last 2 months and now there are many competitively priced mortgages on offer. For impartial advice and a low rate quote call Deal Direct as we can find you the best deal available.

Remortgage rates are currently being released by mortgage providers keen to lure customers away from rival lenders.

For some lenders such intense competition has left them with a problem. For example earlier in summer Nationwide cut their rates to such competitive levels that they have struggled to keep up with demand.

An increase in mortgage applications has led to an increase in the length of time it is taking to process an application. Currently it takes about 3 weeks for an application which is a week longer than its agreed service level.

To resolve this problem the Nationwide is addressing increased demand by increasing its rates.

Higher rates should lead to a fall in demand which should allow the lender to clear its back log. It is hoped that this action will not be taken as a reason for other lenders to start increasing their rates. So often what one lender does today others will do tomorrow.

For advice and a quote call Deal Direct.