Brokers believe interest rates have peaked

The vast majority (89 per cent) of mortgage brokers believe that the base rate of interest has peaked.

That is according to research by GE Money Home Lending, which also found that 43 per cent of brokers believe rates will come down before February 2008.

"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," said Gerry Bell, head of mortgage marketing at the firm.

"At the same time the research has found that almost half of consumers (43 per cent) are worried about securing a good mortgage or a re-mortgage due to the recent credit crunch.

"It is therefore crucially important that lenders continue to work closely with brokers to understand their customers' needs," he added.

The firm also revealed that there has been a shift in the types of mortgages that most brokers are recommending to customers.

In the past three months, 72 per cent of mortgages recommended by brokers were fixed-rate deals but this has since slumped to just 47 per cent as confidence returns to the market following the global credit crisis.

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