Moneyfacts: Only mortgage lenders feel benefit of low base rate

www.moneynews.co.uk > Mortgages > Moneyfacts: Only mortgage lenders feel benefit of low base rate

Moneyfacts: Only mortgage lenders feel benefit of low base rate

Wed 9th Sep 2009

Moneyfacts has claimed that borrowers looking for a new mortgage have not been benefiting from the base rate being at 0.5 per cent for half a year.

Michelle Slade, a spokesperson for the comparison site, noted that competition does appear to be coming back into the mortgage market, although it is doing so slowly.

She commented that it is those looking for a new mortgage deal that have been hit the hardest, however things are improving with more products becoming available and arrangement fees falling.

"The launch of the sub-two per cent HSBC deal will hopefully spur other lenders on to reduce rates and bring much needed competition back to the market," she said.

Ms Slade also pointed out that unsecured lending had become more expensive despite the low base rate over the past six months, which she states is because lenders are worried that some customers are going to default in the current economic climate.

The Bank of England's monetary policy committee will vote on September 10th to decide if they will make any changes to the base interest rate.

Click here for more mortgage news

Related News : Mortgages
	Brits 'failing to grasp the importance of an interest in mortgages'
	BBA highlights mortgage lending growth
	Are interest-free mortgages a bad idea?
	Buy-to-let mortgages are 'more profitable'
	House price performance to impact lenders' criteria
	More Brits 'to choose long-term mortgages'
	Offset mortgages 'are the future'
	UK house prices 'set to fall'
	Hybrid mortgages 'are a good deal' for FTBs
	UK public expects house price increase