Following yesterday’s publication of Bank of England credit figures, David Copland, director of mortgage services for LSL’s financial services division has questioned whether the bottom of the market has been reached.

He said that the BoE figures paint a very positive figure that both the supply and the demand of secured credit rose in Quarter Two. Not only have they risen up until May but the expectation is that both the supply of credit and the demand for house purchase will rise significantly in the next quarter, he warned.

Copland said: “While it is very hard to call the bottom of the market it is starting to look like we have now reached or passed that point. What that means for borrowers is that it may well be time for all those sitting on standard variable rates to remortgage to some of the very low fixed rates out there.

“While rates dropped in the last three months and may even drop further in the short term, it won’t take much more stimulus before SVRs start rising to levels above what even the five year fixed rates are at the moment and those people just making ends meet on their SVR may suddenly be caught short with higher interest rates again.”