CML press officer Sarah Robson said: “The general expectation at the moment is that there will be a reduction in interest rates next year. That will ease the pressure on some borrowers.”
She added that the CML believed the base rate would fall to five per cent by October next year.
Robson advised that those with poor credit ratings who took on sub-prime mortgages could improve them by making sure they met all their payments on time, although the adverse elements of their credit record would not be entirely eliminated by this.
Some lenders have withdrawn some or all of their bad credit mortgage products in the wake of the credit crunch.
This week Kensington Mortgages announced the withdrawal its full range of sub-prime mortgages from close of business today.
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