Steven Marks, lending expert at Newcastle Building Society, said: From this week’s headlines, many people will be forgiven for thinking that they won’t be able to get a mortgage or competitive remortgage deal from their lender next year. Even though interest rates came down slightly this week, such a statement could leave borrowers feeling unnecessarily uneasy.
Yes, these are difficult times and in a more difficult economy lenders have to take extra care to be responsible. But, apart from what is happening with Northern Rock and a small number of specialist lenders, other mainstream lenders are still keen to do business.
Mr Marks said that interest rates have been climbing over the last two years, so there is likely to be an increase in payment for those coming off low fixed rate deals. However, by historical standards, rates are actually low. The outlook will also be helped by the cut in the Bank of England base rate.
