No dramatic mortgage rates change is forecast.
Government plans to provide funding for mortgage lending could prevent further rate hikes this summer, but it is unlikely that rates will greatly reduce.
Some market analysts advise that those already shut out of the mortgage market unable to get a deal are unlikely to see much of a change.
Uncertain economic conditions have led house-holds to borrow less of late. There is an increasing trend for home-owners to pay down debt rather than take on new loans.
Mortgage lending dropped in April post Stamp Duty concession, a situation which has not been helped by lenders tightening their criteria. It has become tougher to be approved for a mortgage.
The Government and BoE are releasing funding in fixed £5 billion tranches to lenders providing they use the funds to offer cheaper loans and mortgages. It is hoped that this will provide access to more loans for would be buyers and those looking to remortgage. However hopes of a significant mortgage rate reduction is not looking likely.
Banks increased their rates to absorb funding increases and maintain profits. While mortgage rates may be kept at their present level it is unlikely lenders will drop them much lower. The new measures may just stop rates rising any further and increase mortgage product choice.
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