Following a number of predictions of a market slowdown, the CML claims that lending is likely to continue to decrease during 2008.

The Yorkshire Building Society meanwhile has a selection of low-interest deals, including a 5.49 per cent fixed mortgage for between two and ten years. That product comes with an arrangement fee of £999 and covers up to 75 per cent of the value of a property.

However, should interest rates fall in the future, fixed-rate deals may not be the most competitive option, he warned, advising those looking to take out a mortgage to consult an adviser who will take their personal circumstances into account.

Research by Abbey rated individuals' financial condition on a score of zero to 100, where zero is financially fit and 100 is financially obese. It analysed the number of financial products an individual has, the competitiveness of these products and how often they shop around for a better deal.

Prior to Thursday's decision, the monetary policy committee had increased the base rate five consecutive times since August 2005.Last week's decision by the monetary policy committee to cut the base rate to 5.5 per cent may not mean 2008 will be an easier year for mortgage-holders, according to the Council of Mortgage Lenders (CML).

The investment firm claims that the decision will help first-time-buyers onto the housing ladder and reduce monthly payments for people with variable rate mortgages.

CML senior policy adviser Rob Thomas commented: "Measures that would trigger really significant demand for long-term fixed rates are potentially controversial or costly."

Mr Tovey also advised that homeowners ensure the laborers working on the property are fully insured for the job they are doing.

Following a report by the Bank of England that revealed net consumer credit growth more during the month of October than in September.

"People's lives are busier than ever in the run up to the festive season and, as a result, they may be less inclined to shop around for the best deal," said Matthew Carter, divisional director for mortgages for the building society.