Landlords could see smaller margins on mortgage products this year, if predictions from one mortgage broker are correct.

The cost of money will not increase this year and interest rates are unlikely to go up, according to the chief operating officer at Alexander Hall, Andy Pratt.

Mr Pratt said: "I can't see any reason for the margin to go up."

Property prices may have an effect, but many lenders will be "willing to take that risk of a 90 per cent"loan-to-value mortgage.

Competition between organisations could lead to lower margins - as could political pressure as money is being "freed-up", he added.

Yesterday (January 4th) the Building Societies Association noted that gross mortgage lending by such financial institutions was at £1.57 billion in November last year.

This was an increased from £1.7 billion reported the month before.

If a different party were voted into power in the general election this year, policy could change.

Whether or not the Monetary Policy Committee will add more than £200 billion into the mortgage market is yet to be seen, Mr Pratt claimed.

Written by Mark Garner ADNFCR-2002-ID-19540966-ADNFCR

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