The society feels that this could cause undue panic amongst borrowers.
“Even though interest rates came down slightly this week, such a statement could leave borrowers feeling unnecessarily uneasy," said Steven Marks, Newcastle’s lending expert.
“Yes, these are difficult times and in a more difficult economy lenders have to take extra care to be responsible. But apart from what is happening with Northern Rock and a small number of specialist lenders, other mainstream lenders are still keen to do business. I believe there will still be competitive deals out there for people next year.
“Interest rates have been climbing over the last two years, so there is likely to be an increase in payment for those coming off low fixed rate deals. However, by historical standards, rates are actually low. The outlook will also be helped by yesterday’s cut in the Bank of England Base Rate.
“Our clear message is: don’t panic.”
