Almost three quarters of mortgage brokers expect the Bank of England base rate to be cut during 2008, with one in ten believing it will stand at a rate lower than 5 per cent by the end of the year.
In response to these expected cuts, the lender has launched a three-year product at a rate of 7.14 per cent for near prime plus customers and 7.34 per cent for near prime customers, available to 90 per cent loan to value (LTV) for self-cert customers, and 95 per cent LTV for all other borrowers.
Gerry Bell, head of mortgage marketing at GE Money Home Lending said: "Consumers and brokers alike will be looking for a reduction in interest rates to ensure property purchases remain affordable. Discounted rates are likely to become more popular throughout the year, so we have responded to this demand with the launch of a competitive new range of discounts, which will be attractive to many brokers."
