Mortgage predictions for 2010

Date:Wednesday 23rd December 2009
Author: Max Freedman

The mortgage market is looking to stay similar to this year in the next 12 months, according to the mortgage specialist at moneysupermarket.com.

Mortgages expert Hannah Skenfield said that lenders are likely to remain picky about who they offer their products to.

Tracker mortgages are likely to remain popular, but consumers are warned that, as interest rates begin to creep up, an increase could mean that monthly repayments quickly become unaffordable for many.

The situation for first-time buyers does not look too promising, especially with the end of the stamp duty holiday on January 1st meaning potential buyers have to have even more cash ready up front.

More products with high loan-to-values are likely to appear on the market, but they will have a high interest rate, meaning the best deals are likely to go to those who have a large deposit.

The price comparison site is optimistic overall about the future for the property market, especially consider the growth that has been seen since the market dropped at the beginning of the year.