Mortgage lenders ''still offer competitive range''

The mortgage market has been described as "dynamic and competitive" despite the recent interest rate hike, according to one property expert.

Bernard Clarke, a spokesperson for the Council of Mortgage Lenders, said that even though the Bank of England raised the rate to 5.25 per cent last week there is still a competitive market for borrowing and saving for homeowners.

He said: "I think that lenders continue to deliver good value for consumers."

Reports say that many fixed-rate mortgages have been taken off the market since the latest rate rise because so many borrowers were rushing to take them out in case the rate of borrowing increases any further.

Around 60 per cent of UK homeowners have the fixed-rate deals whereas the rest are subject to fluctuating rates.

Almost half of the economists polled by Reuters said that they think rates will rise again later this year.


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