The news is bad...but not so bad for mortgage holders

Posted on 16 September 2008 by Drew

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Just when you thought there was a chance we may have gotten through the worst of it, we have a day not seen since Al Capone had a small thought that perhaps he may ignore prohibition and make the odd bottle of moon shine.

Lehman Brothers’ demise, along with several other pieces of devastating news, has sent the markets tumbling and confidence will follow as it always does.

Yet fear not, the news on mortgages for all of us normal people looks more promising, highlighting the potential that we are more likely to see a cut in interest rates, and thus mortgage rates, soon.

As for product choice, it still shows that trackers are the way to go with further falls expected next year.  Many commentators are predicting that in this interest rate cycle we may well see rates that start with a 3, which would clearly be great news for many borrowers and a clear reason not to fix your mortgage just yet.  It’s just another reason why a drop lock is a cracking feature at present.

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