Lenders about to fix?
And his view is backed up by statistics from lenders revealing that the property market is starting to slow – a trend that is set to take the heat out of recent calls for a rate hike.
Frankish believes that, over the coming months, a new breed of aggressively-priced fixed rate products will start to overtake discounted schemes as the mortgage product of choice for the discerning borrower. “Although there are still some excellent discounted products out there, the race is on for lenders to unveil fresh fixed rate deals, in line with the market leaders,” he said. “Even though the Bank of England's base lending rate has stayed the same for 10 months, this 38-year low may well be broken in the next month or so. Lenders are already starting to respond by bringing out even lower fixed rate deals.”