Will first-time buyer mortgages be affected by the base rate in 2010?

24-Dec-2009

Certain first-time buyer mortgages may be affected by changes in the base rate this coming year.

However, if the comments of one expert are anything to go by, consumers should not expect the Bank of England's Monetary Policy Committee to increase at all in 2010.

Alan Clarke is a UK economist at BNP Paribas, which is a global banking and financial services group.

He said there will not be any interest rate hikes throughout the year or in 2011.

But Mr Clarke admitted that his predictions were at the "very aggressive end of the spectrum".

"The Bank of England knows that fiscal policy tightening is coming, so it is not going to tighten interest rates ahead of it being announced," he forecast.

Despite the economic turbulence experienced in 2009, the Council of Mortgage Lenders reported earlier this month that loans for new mortgages increased in number during October.

The total went up by nine per cent from September - and 43 per cent from October 2008.

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