Not much chance of mortgage rates falling, experts say

There is little chance that mortgage rates in the UK will fall further, it has been suggested.

Commenting on the issue, Paul Broadhead of the Building Societies Association (BSA) said that consumers should not expect continuing reductions.

He stated: "Rates being paid cannot drop much further - and many will not pass on this latest reduction in full," the BBC reports.

Mr Broadhead added that savings rates are "almost at a floor".

Meanwhile, Bernard Clarke of the Council of Mortgage Lenders claimed that there is now "little scope" for lenders to make discretionary cuts to their mortgage rates, adding that the country is in uncharted territory.

Recently, the BSA suggested that the recent cut in the base rate of interest to 0.5 per cent may have a detrimental effect on the mortgage market as it will act as a further disincentive for people to save, meaning fewer people will be building up deposits to put towards purchasing properties.