Uk mortgage rates start to come down

By: Mark Leaper

Market economists have said that the the reduction of mortgage rates defines a glimmer of hope for the uk mortgage market and recovery may come sooner rather than later, with better quotes for mortgages being at last on the horizon.

Fionnuala Earley, chief economist at Nationwide, said: "With the cost of mortgages starting to come down, activity could increase and restore some liquidity to the housing market," although she added that this will not be an "overnight" turnaround.

Building societies and Bank confirmed that they had been able to cut cost associated with their mortgages due to trading rates have overcome the high levels experienced and have recently fallen.

Mark Leaper of moneymatchmaker.com, UK Price Comparison website commented after the Nationwide monthly house price figures for July were released - revealing a 1.7 % fall - went on to say that interest rates should soon start to reduce as the slowing economy curbs inflation.

Leaper went on to say that the credit crunch, brought about the collapse in confidence within the US investors had caused real pain for the uk homeowner with unusual circumstances.

He add that in recent years, people had started to expect that mortgages and loans would be available, even with a poor credit rating and the loss of these products had really stiffled the markets and added huge pressure and stress onto a large proportion of homeowners.

As well as the worry of borrowing money, the cost of living is on the up and British Gas has been slated over news that it intends to apply new price increases, just a day after its parent company Centrica stated it had made large profits.

The firm has said prices will rise by 35 per cent a day after Centrica revealed profits of nearly ?1 billion, a move that has sparked anger among bodies concerned that this could add to debt and poverty, such as those struggling with repayments and needing mortgage help.

Child Poverty Action Group said: "These dramatic increases in the cost of energy is hurting the poorest the most. With the cost of living on the up, families really don't need more bad news that causes more fuel poverty."

The body called for the company to consider the interests of hard-hit consumers ahead of those of its shareholders.

Energy price comparisons are available from providers right accross the ukFree Reprint Articles, with real savings being made by switched people that are prepared to take the effort to look and switch providers.

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