Mortgage rates may fall and lending increase due to interest rate freeze.

There is positive news for home-owners in that mortgage rates are now not only likely to remain at record lows for sometime to come, but there are predictions that rates could fall even further.

The Bank of England has said it intends to keep the interest rate at 0.5% until unemployment reaches 7%. By focusing on unemployment figures rather than inflation, the Bank has choosen to pursue a looser monetary policy. This in effective offers mortgage-holders the surety that the BOE is unlikely to suddenly increase interest rates.

Since this was announced just over a week ago, mortgage lenders have started to experience an increase in mortgage requests.

With news the bank rate is to stay low until 2016 interest in trackers has increased, and fixed mortgage rates which have been set at record lows for several months many now get even lower.

If you are looking to take advantage of a low rate offer there are many deals available set at competitive levels, some fee free and others come with valuable mortgage incentives such as cashback.

The property market is said to be on the up, with average prices reaching their highest level since 2008. With property prices predicted to increase and mortgage rates possibly set to get lower, now is the time to search the market to find a deal to climb on the property ladder, move to a new home or remortgage.

The housing market has been buoyed by the Help to Buy scheme and when from Jan 2014 it is opened up to include the purchase of all property and not just new builds, the market is predicted to take off.

Before prices rise further you are advised to act, once prices rise your equity or deposit won't go as far, which will affect your deposit. Having to go for a higher LTV mortgage will then have a knock on effect on the rate you will be charged. Waiting could therefore wind up costing you far more.

If you are looking for a mortgage you are advised to call Deal Direct for advice and a quote.

For the cheapest mortgage rates market-wide,

call 0800 048 8828.