Mortgage market has "reached a plateau"

Date:Friday 2nd October 2009
Author: Susanna Kavka

The mortgage market has "reached a plateau", one sector commentator has asserted.

Darren Cook, spokesperson at Moneyfacts.co.uk, made his remarks as the financial services provider stated that the availability of a current mortgage deal rose from an average of 18 to 24 working days during September.

This is the longest period of time on record since October 2007, the company stated.

Mr Cook said that the extension of the mortgage deal shelf life is a clear demonstration of the fact that rates are becoming "much more static".

However, he asserted that the market is far from being an arena for "healthy competition".

"We have reached a plateau in the mortgage market and rates are unlikely to move noticeably from their current levels within the foreseeable future," Mr Cook continued.

He concluded by noting that many economists believe that the Bank of England base rate will remain at its current low level of 0.5 per cent for a significant portion of the final quarter of 2009.