New Standard Life Bank research has revealed 21% of UK advisers believe interest rates will climb next year.
The survey of 100 advisers across the country showed despite the recent market volatility and continued uncertainty, many IFAs still believe rates will rise, with 40% of those located in the South West predicting a move up from 5.5%.
The majority of advisers still think rates will fall or stay the same, both 37%, while 5% are undecided. Scottish IFAs are most convinced rates will fall, with 50% expecting a drop.
Advisers are also predicting house prices to increase, with 52% expecting a rise, while just 11% think a drop is on the cards. IFAs in London and the North West are most confident on a rise (67%).
“We expect to see continued tightening of lending criteria in 2008 and that will provide a real opportunity for IFAs to demonstrate added value,” Standard Life Bank national sales manager Will Fraser says.
“With expectations of at least one further rate cut, tracker products are certain to become more popular.”
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