BBC News - Fresh rise in mortgage rates predicted.

Aaron Strutt Image

Falls in mortgage rates could come to "an abrupt halt", according to brokers, with expectations that home loan costs may rise in the coming days.

Lenders have been locked in intense competition for borrowers in recent weeks, which has led to consistent falls in the interest rates charged on new fixed mortgage deals.

However, in general the medium-term direction of interest rates is still expected to be down.

"There is a lot of concern about the upcoming Budget so once it has been announced we could see the money market settle down again," said Aaron Strutt, of broker Trinity Financial, told the BBC.

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