(1888PressRelease)
July 19, 2007 - In comments published in the Financial Times this morning, Mr Darling said that lenders would be pushed to offer fixed-rate deals over longer periods of time in order to tackle the financial hardships currently being experienced by many homeowners.
"What is obviously a concern to me is that when people come off a rate that was maybe fixed two years ago, and I suspect there are a lot of people on two year mortgages, they will now come out of that, and they will then find that the rate has gone up," he told the financial daily.
"Our economy is far more influenced by the mortgage market than most other economies for historical reasons, and therefore getting this right, both in terms of housing supply and in terms of the financing of house purchase, the information available to people, is all very, very important."
Interest rate are widely expected to rise tomorrow, when the Bank of England's monetary policy committee meet.
Julian King, director of property purchasers National Homebuyers believes that not only will the rate hike result in further misery for homeowners but will also impact negatively on housing market stability.
"Homebuyers should be cautious about borrowing record volumes at a time when borrowing costs for both fixed and variable rate mortgages are likely to rise further," he said.
"The current lack of disposable income will continue making affordability levels reduce even further. Homeowners predicting a hit when they exit their current agreement should have plans in place."
National Homebuyers is the UK's leading fast purchase property firm, guaranteeing a quick sale of any property, in any condition in the UK.
