High Street mortgage lenders have reduced their interest rate increase warnings for the coming year as the housing market and economy seems to be cooling to a more sustainable level.
Our view
Lenders need to show predictions that interest rates will not increase as much or else their lifeblood income of lending may dry up.
Is it any wonder they are predicting not as heavy increases! Last month they were saying one thing now another and we are only two weeks into the New Year!
We stand by our prediction - interest rates up by 0.25% next month and a further 0.5% to 0.75% increase by the end of the year.