Mortgage customers expecting more rate cuts

New home buyers are increasingly expecting more cuts in interest rates, new figures have suggested.

Statistics from the Council of Mortgage Lenders (CML) indicated that first-time buyers were becoming more likely to take out tracker or variable mortgages rather than fixed rates.

In November, 65 per cent of new mortgages were at fixed rates, compared with 68 per cent in October and 77 per cent in the peak month of June.

While overall gross lending was 10.4 per cent down on October, CML director general Michael Coogan said the mortgage market was holding up "reasonably well".

He suggested a further rate cut would bolster the market, although "mixed" news on inflation made this decision "finely balanced".

An Adfero poll found six of the eight economists quizzed predicting no change tomorrow, although three of them stated at least one more cut would come soon.


© Adfero Ltd