Even though lenders are getting more competitive, that doesn’t mean the problems in the housing market are over. “This is not the start of a new dawn,’ says Alex Murray of national adviser network Thinc Group. ‘Massive supply problems remain.’

Stephen Gifford, Grant Thornton’s chief economist, said: “Despite the global downturn flattening the growth of personal debt and UK GDP over the past few quarters, debt levels continue to grow at a faster rate than the income the UK generates. Although there is no cause for panic as personal debt is well covered by the UK housing stock, the figures clearly illustrate the continuing problem of growing personal debt levels in the UK.”

“There is no need to remortgage to a shorter term because the end effect is just the same,” says Melanie Bien of broker Savills Private Finance. “As you currently do, you’ll simply pay less interest over the term. It’s important to only overpay by as much as you can comfortably afford, as you can’t get this money back.”

Louis Cuming of MoneySupermarket stated, “Landlords wishing to remortgage buy-to-let properties will find it difficult, with lenders demanding sizeable deposits or charging higher rates. This could force landlords to re-evaluate whether it is worthwhile staying in the sector in the current climate. With property prices falling though, there may well be many landlords having to sell their investment at a loss.”

Richard Morea of London & Country says, “You won’t have to pay an upfront fee for the remortgage if, as many do, the lender offers either the option to add the fee to your overall loan, or for you to pay it at completion of the remortgage deal.”

“I doubt that you will get anything much cheaper over the next two months, so I would advise playing safe and submitting an application now,” says Ray Boulger of John Charcol.

Andrew Montlake at Cobalt Capital said, “These are between 0.5 per cent to 1 per cent cheaper than fixed rates and – in the current market conditions – it’s unlikely that rates will increase dramatically in the short- to medium-term.”

Darren Cook of MoneyFacts stated, “Two-year swap rates are continuing to fall and yesterday’s closing price of 5.74 per cent is the lowest since mid May of this year, when the overall average two-year fixed rate was 6.63 per cent. If these downward trends continue unabated, we will see further fixed-rate cuts by our top high street lenders in weeks to come, which just might be that glimmer of hope that we are all endlessly seeking.”

“The rates have certainly been getting better in the past fortnight, with lenders responding to each other’s price adjustments,” added David Hollingworth of London and Country “You can’t say yet that this is a definite trend, but there is more daylight.”

Phil Perry, director of Cheshire-based IFA Ark Financial Planning, said: “I can see the decline in remortgaging happening because people are finding it more cost-effective to stay with their current company. There is more of an argument to stay with your current provider at the moment that to move around. These are uncertain times and more people are looking to fix their payments but it is at least one thing they have control over unlike rising food and fuel prices. At least they are able to budget for their future mortgage payments.”

“The repayment shock for those attempting to refinance two-year fixed mortgages is now huge. They are paying on average 163 basis points more than when they took the mortgage out,” said George Buckley, chief UK economist at Deutsche Bank.

He continued, “This is a very significant rise that will reduce demand both for new mortgage finance and remortgaging. There is bound to be a knock-on effect on house prices.”

“Lenders are no longer interested in the top end of the market,” says Gary Festa, of HFM Columbus, a wealth manager and mortgage broker. “Lenders are increasingly capping their loan offerings. Nationwide’s cut-off point is £500,000, as is the Chelsea Building Society’s for any scheme other than its standard variable rate.”

Richard Morea, at London & Country Mortgages, said: “A lot of people are, understandably, asking themselves if they should be buying at the moment. You can fix your rent for the next six months, save for a higher deposit, sit it out while interest rates go up and watch house prices fall. I can see no reason why a first-time buyer should want to buy in this market. If lenders are forced to charge lower fees, it’s likely that the underlying interest rate will rise.”   

Howard Archer, an economist stated, “Very low housing market activity seems certain to feed through to further depress already markedly weakening house prices. Those people who took out 100% or even 100%-plus mortgages within the last two years are particularly vulnerable to falling into the negative equity trap.” 

“Despite three cuts in the base interest rate, you still need to keep an eye on your savings - there’s a three per cent spread between the top and bottom of the ISA tables. But there’s good news for those seeking term life insurance - it’s getting cheaper all round with both near worst and near best costs coming down this quarter,” said Robin Amlot of Money Extra.

Sean Gardner, director of MoneyExpert.com, comments: “Anyone looking to remortgage or to buy a property for the first time will need to recalculate their options if they haven’t factored in fees. The days of fee-free mortgages are over and frankly getting anything under £1,000 is something of a coup.  And with stamp duty reaching an average of £4,950 per property moving home is becoming more and more expensive.”