Borrowers urged to take advantage of good mortgage deals
22/09/2008
Consumers in the UK have been urged to take advantage of attractive mortgage deals before they are withdrawn.
Commenting on the current market volatility, Melanie Bien, director of Savills Private Finance, said that with the recent collapse of the Lehman Brothers and other well-publicised banking problems, home loans are likely to become increasingly expensive.
She said: "Confidence in the financial markets has once again been shaken and if this continues, with more banking names dragged into it, this will discourage lenders from lending to one another, pushing up the cost of borrowing in the money markets," the Times reports.
In turn, this could result in higher mortgage rates, which may be particularly unwelcome news for consumers already struggling with high level debts.
Recently, uSwitch.com advised UK consumers to take advantage of cuts in personal rates introduced by Moneyback Bank before they are withdrawn from the market, saying the reductions are part of a yo-yo strategy and prices are likely to rise again.
