Lower mortgage rates predicted for 2009 - commercial mortgages

19 December 2008

The cost of a mortgage will get cheaper during 2009, it has been suggested.

According to the Council of Mortgage Lenders (CML), the housing market will "remain extremely subdued" next year, but there will be some benefits for mortgage holders, which could include those involved in commercial mortgages.

Director general of the CML Michael Coogan stated: "2009 will be a challenging year, but borrowers who remain in employment will see some benefits in the form of lower mortgage rates."

Mr Coogan added that government intervention of late had provided "glimmers of light", but that more help is needed.

The body recently hailed a government announcement that changes are to be made to the credit guarantee scheme making it cheaper for lenders to apply for government-sponsored guarantees.

The CML has revealed that gross mortgage lending in November amounted to £14.6 billion, a fall of 22 per cent on the previous month.