While the low rate loans are certainly popular, it is not uncommon to see all manner of different types of competing products that call themselves all manner of different names. While there are certainly lucrative, low rate loans are easily the best deal for those wanting to invest their money and continue to do their best to find the products that they require. Low rate loans can mean all the difference in the world for those who are behind on their mortgage payments or those who are unable to afford a higher rate.

“It is good news that housing starts are at the low level where they are, and at some point people are going to come out of rental housing and move back into purchased housing.” said Bill Downe, the CEO of the Bank of Montreal.  “The one big “blockage is the pending restructuring of government-sponsored mortgage lenders Fannie Mae and Freddie Mac. When they’re restructured, I think the U.S. housing market will become a much more orderly place.”

“Name the cookie jar, another writedown,” said Edward Jones analyst Craig Fehr.

Louis Cumings of MoneySupermarket commented, “Anyone finding their mortgage repayments a real struggle should remember final repossession is a long process and lenders have a regulatory requirement to act sympathetically towards borrowers experiencing financial hardship. Anyone worried about their ability to keep on top of their bills should approach all creditors, not just their mortgage lender, as soon as possible and work with all parties to try and put an affordable monthly payment plan together.

Peter Bolton King, chief executive of the National Association of Estate Agents (NAEA), said: “I remain concerned that the optimism for the next few months may be scarred by the current uncertainty regarding stamp duty. The confused messages being sent out by the Government will undoubtedly have an impact on consumer confidence as the public is understandably confused at present about whether to buy or sell.

“My own view is that the slowing economy will eventually reduce inflationary pressures and therefore the next move in interest rates will be down but possibly not before the end of the year. The recent decline in commodity prices reflects concerns that the credit crunch and slowing economies in the West are beginning to have a negative impact on emerging market growth,” commented Ted Scott of the F & C UK Growth and Income Fund.

“The demand from fast growing emerging economies such as China and India has been the main reason for the steep rise in commodity prices - if they have now peaked, inflationary pressures should decrease and free the MPC’s hand to provide a more accommodative monetary policy”.

“We think that in most respects the UK is undergoing a U.S.-style housing correction,” said David Page, economist at Investec, who expects house prices will continue falling until the end of next year before finding a bottom. We think that this is likely to be followed up by years of much flatter growth than we have seen for the bulk of the preceding decade.”

“The lack of mortgage funding increases the danger of an over-correction in prices beyond what is required to bring buyer affordability in line,” said Miles Shipside at Rightmove.

Managing director Richard Angliss says: “These statistics are facts, not speculation, and they support our view that the only way forward for mortgage intermediaries is to change their business models to enable them to research and recommend direct-to-lender products and to charge the customer a reasonable fee for this service, with the customer still enjoying a considerable saving.

“Feedback from mortgage adviser blogs and other sources shows that some IFAs and mortgage brokers believe that they cannot recommend direct-to-lender products because the lender will not supply a KFI. This belief is erroneous, and the FSA confirms on its website that if an adviser has the ability to produce a KFI for a direct to lender product there is nothing to stop them doing so. Our HBSLite system, designed to give advisers everything they need to sell direct-to-lender products, can produce a KFI for every mortgage product currently on offer across the entire mortgage market.”

“These are loans that are very hard to restructure because you look at the original loan documents and there is nothing there,” said Chris Mayer, real estate professor at Columbia Business School.

“The perception in the market is, ‘Good luck, Sheila. Let’s see what you can do with the loans’,” said Guy Cecala, publisher of Inside Mortgage Finance. “IndyMac has probably already done as much as they could with those loans.”

“We are committed to working with those borrowers to seek long-term and sustainable modifications,” said Andrew Gray, an FDIC spokesman. “It’s a benefit to both the borrower and lender to have these borrowers stay in their homes.”

Keith McNeilly, co-founder of Moveme.com, said: “Contrary to a lot of the negative headlines, the majority of movers would rather see house prices fall than rise over the short term. Over the last eight years, house prices have increased by more than 120%. This level of growth was never going to be sustainable over the long term and as a result, the recent fall in house prices is being welcomed, particularly by those looking to step onto or move up the housing ladder.”

“The average price of a flat in May this year was £183,266, that’s over seven times the typical starting salary of today’s graduate and likely first-time buyer. The increasing plight of those at the bottom of the ladder is no secret and the current stall in house prices is likely to improve the affordability for those currently unable to afford their own home.”

Drew Wotherspoon of broker John Charcol stated, “With conditions in the market currently blustery, to say the least, Cheltenham & Gloucester has released its “all weather” mortgage, which we know as a drop lock. This enables consumers to have a variable rate, but retain the ability to drop into a fixed rate at any time without penalty. For those with a deposit or equity of 25% or more, the rate is Bank Rate +1.39%, and the fee is £995, which makes it very good value in the market. However, as with all types of variable mortgages, and particularly in the current environment, borrowers should ensure they can meet payments should rates increase, or be prepared to drop into the fix, bearing in mind they are on the up.”

Ed Stansfield of Capital Economics, a consultancy, said: “If the recent rise in swap rates is sustained, two-year fixed mortgage rates are likely to approach 7% in the next few months. With demand in the market already so weak, that would represent another huge blow to the housing-market outlook.”

Melanie Bien of broker Savills Private Finance said: “RBS can do this even though Bank rate is remaining on hold for now because these accounts are linked to a standard variable rate. It is worrying to think what measures banks will take if rates actually rise.”