Mortgage interest rates have become very affordable for homeowners, an expert has suggested.

Lucian Cook, director at real estate service provider Savills, spoke out about Ernst & Young's ITEM Club forecast, which was released today (July 26th).

In the predictions, it was stated that interest rates are unlikely to go up for another four years.

Mr Cook said: "What that does for the housing market is it continues to make mortgages very affordable."

The ITEM forecast suggested that the Bank of England base rate of 0.5 per cent is likely to remain until the end of 2013, in an attempt to prevent CPI inflation falling below one per cent.

Mortgage adviser John Charcol reported earlier this week that variable rate mortgages were still the most popular among homebuyers, suggesting that the low interest rate had discouraged consumers from choosing fixed-rate loans.

Ernst & Young's predictions could lead to a rise in the number of people looking for places to store their furniture and belongings, as low-priced mortgages are likely to encourage more people to move homes.

Written by Paul Governor

Looking for storage in Ipswich? Contact us free on 0800 077 3447 now.