Huge rise in number of cheap five-year fixed-rate mortgages
Drew Wotherspoon, speaking on behalf of the firm, said: It�s no surprise to see Base Rate held today as the true impact of last months increase, the first move in a year, is still to be fully felt. If the strong growth in the housing market reported by leading industry bodies continues for the next month, then this, coupled with the next quarterly inflation report, makes November the most likely time for another quarter point rise.
Wotherspoon also commented on the impact of the interest rate increase on the housing market : While the housing market is still in good shape, consumers continue to be hit by increases to domestic fuel bills, many of which won�t be implemented until later this year. Retail statistics also show that the Bank�s interest rate rise in August has hit retail shopping. The latest retail figures show a fall of 1.3% on July 2006 which is down 3% year on year. Inflation is also still way above target at 2.4% and a 0.1% fall on last months figures shouldn�t be seen as a solid correction in the market .
Wotherspoon is of the opinion that tracker mortgages remain the most competitive on the market, despite fixed rate deals not dropping away in popularity. He continued: For those able to afford a tracker they are still the best option and offer better value than most fixed rate mortgages in the current market. Trackers will continue to be a good option unless base rate rises above 5.25% which won�t happen in the near future .
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