Homeowners 'could feel more confident about mortgages'

Posted: 10 Jun 2011 11:09:58 GMT

Households might be happier about their mortgage positions thanks to the interest rate decision.

Homeowners and buyers might find they feel more confident about their mortgages if the interest rate rise is delayed further.

Andy Pratt, chief operating officer at Alexander Hall, suggests this would be the case for those who choose tracker deals, as they are likely to be "less troubled" about their house loans.

"The key factor is inflation," says Mr Pratt, as this will have a big impact on the state of the country's finances.

It is possible that the UK could see a similar situation to Japan, where record-low base rates continued for quite some time.

This could mean that the proportion of homeowners who choose tracker deals might be set to increase further over the coming months.

Yesterday (June 9th), the Bank of England's Monetary Policy Committee chose to maintain the official base rate of 0.5 per cent, meaning this level has remained unchanged since it was reduced on March 5th 2009.
 

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