Borrowers 'are waiting to remortgage'

Date:Wednesday 11th February 2009
Author: Rachel Fletcher

Many mortgage holders in the UK are anticipating further cuts in fixed rates offered by lenders, according to a new survey.

The research by discovered that more than a third (35 per cent) of those questioned would switch to a fixed-rate mortgage if the rate on offer stood at three per cent or lower.

Nevertheless, unpredictability in the market means that 23 per cent would now be less likely to switch products without taking professional advice first.

David Elms, chief executive of, warned borrowers against trying to second-guess interest rates too much in the current climate, as they could miss out.

"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," he advised.

According to the Council of Mortgage Lenders, the number of house purchase loans taken out last November fell by 59 per cent compared to the same month in 2007.