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Lenders 'unlikely to raise mortgage margins in 2010'
It is unlikely that lenders will increase the margins on their home loan products this year, according to one expert.
Andy Pratt, chief operating officer at mortgage broker Alexander Hall, stated that increased competition between lenders will see interest rates on home loans staying the same or being lowered.
"The cost of money is going to probably stay the same or reduce, so I can't see any reason for the margin to go up. The last 12 to 18 months has probably been the best period for lenders to have the largest margin on their mortgages," he added.
Mr Pratt continued to say that lenders are also more likely to offer 90 per cent loan-to-value deals in the coming months.
These comments follow the release of new data from the Bank of England which showed that home loan approvals were up towards the end of last year, with 60,518 new mortgage approvals in November 2009, compared to 57,718 in October.