Earlier this week, the Bank of England decided to hold its interest rate at five per cent. This decision was fairly predictable for many experts as it has been prompted by concerns about the level of inflation.
Many experts are predicting that in the next month or two the Bank of England is likely to introduce another cut of quarter a per cent.
In addition, the Council of Mortgage Lenders (CML) has written an open letter to the Chancellor Alistair Darling saying that it is ensuring that mortgages are protected and so those who have or who are taking out mortgages at the moment can be reassured that they do not need to have a major fear of repossession.
Steps being taken by the body include reassessing all arrears management policies, providing more consumer information on those policies, introducing a jargon-free pre-action protocol for use prior to any court action and also providing a longer notice period for those whose special mortgage deals, such as fixed rate deals, are due to expire, giving consumers more time to take up an alternative special mortgage deal and to consult a mortgage advisor where they would like to.
Another development likely to assist those who wish to take out a mortgage at the moment is that most mortgage lenders have now slowly returned their mortgage interest rates and costs down to pre-credit crunch levels, according to new figures released earlier this week.
Those on CeMAP courses and looking to become mortgage advisors will do well to note these changes. Mortgage advisors are well advised to keep details of when their customers special mortgage deals are likely to end so that they can contact them in time to help them search and apply for a new mortgage deal.