Mortgage rates 'unlikely to rise' in 2010

Posted: 05 Jan 2010 10:38:30 GMT

It is unlikely that mortgage rates will rise in the coming year, one expert has stated.

Andy Pratt, chief operating officer at mortgage broker Alexander Hall, says that increased competition among lenders could even bring rates down in 2010.

Recent figures from the Bank of England have revealed that there was a rise in the number of mortgages that were approved in November 2009.

Some 60,518 new home loans were agreed in the month of November, in comparison to 57,718 in October.

Mr Pratt goes on to add that more 90 per cent loan-to-value mortgages could come on to the market in the coming months.

"Within reason, and with the right type of client, all of them [lenders] are willing to take that risk of 90 per cent or slightly higher," he suggests.

According to figures from the Building Societies Association, gross mortgage lending from building societies totalled £1.57 billion in November 2009.

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