Base rate predicted to fall

Almost half of mortgage brokers believe the base rate will fall in the next three months, while 89 per cent believe the rate has reached its maximum level for the time being.

This has resulted in fewer brokers advising on longer fixed-rate mortgage products, favouring instead discount and tracker mortgages, according to GE Money Lending.

Fixed-rate mortgages accounted for 72 per cent of broker recommendations since the start of August, as there was concern about the predictability of the coming interest rate moves.

But there is now growing confidence in the market and speculation is increasing about the potential drop in the rate.

Gerry Bell, head of mortgage marketing at GE Money Lending, said: "Our latest research shows an element of growing confidence from brokers, with nine out of ten believing that interest rates have already peaked at their highest level.

"At the same time the research has found that almost half of consumers are worried about securing a good mortgage or a remortgage due to the recent credit crunch."