Mortgage frenzy predicted for March

Posted: 05 Feb 2009 08:36:15 GMT

Most mortgage holders believe that the cost of a mortgage will reach its lowest price in March this year, research from financial advice website unbiased.co.uk has found.

If this is correct, there could be a sharp rise in the number of homeowners switching their mortgage deals in order to take advantage of the low prices.

Such a phenomenon may also lead to an increase in the number of homes bought and sold, as some homeowners will be tempted to use the opportunity to move up the housing ladder.

David Elms, chief executive of unbiased.co.uk, said: "Even without a further rate cut [today] interest rates are now four per cent lower than just 12 months ago.

"With rates so low, and further cuts likely to have been priced in by lenders, borrowers need to ensure they don't lose out by holding out too long for falls which may not come."

Homeowners looking out for a bargain may benefit from buying a house online, which could not only display a greater number of available properties but also save buyers money, as they would have the opportunity to avoid using expensive estate agents.


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