Half of consumers 'worried about mortgages'

Nearly half of all consumers are concerned about their ability to get a good mortgage deal in the light of the credit crunch, new research from GE Money Home Lending has revealed, but help could be at hand in the form of an interest rate cut.

While 43 per cent of consumers now fear for their chances of getting a good deal, the same proportion of mortgage brokers believe that interest rates will fall within three months, according to the study.

This is set to lead to a sharp increase in the number of brokers who recommend tracker or discounted products, the lender added.

"Consumers and brokers alike have clearly been concerned by the recent stress in the financial sector and our research indicates that the market is now being boosted by a possible decrease in interest rates in the coming months," outlined Gerry Bell, head of mortgage marketing at GE Money Home Lending.

"This will also be welcome news to those homeowners currently coming to the end of a fixed rate product who are concerned about re-mortgage products and rates that will be available to them," Mr Bell added.

The Bank of England has held interest rates for three months in a row, and is expected to do the same when the Monetary Policy Committee meets next week.

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