Expert says “Bank of England base rate unlikely to raise over 2%”

Sir John Cunliffe stated that the Bank of England base could be below 2% for the next 30 years. Could this be true? With the amount of debit people are accumulating it makes since to keep rates low in order to avoid a financial collapse but what happens when the debit becomes to overwhelming? Something to ponder read more

Great News! Lenders are loosing up

Please read this article Excellent! Lenders are loosing up there criteria but, it does not mean that they are lending like they did before the credit crunch. They are allowing you to borrow a little more based on your income and some are small building societies are falling in line with other financial read more

Nationwide to entre the equity release market

I have just read an article about homeowners over 55 releasing equity from there homes and that Nationwide Building Society are now going to lend to this market. The highlights are 1) Available to 55 – 84-year olds 2) Up to 46% loan to value depending on age 3) No fees including legal and survey 4) You can port to a new property 5) You can take additional borrowing 6) Can pay back up to 10% per year Read here if you want all the detail read more

New regulation on how much you can borrower on a mortgage

Such "reversion" rates are often the same as the lender's standard variable rate, or SVR. According to Ray Boulger of John Charcol, the broker, SVRs can currently be as high as 5.75pc. This could mean that some banks are forced to stress test at a very high rate of 8.75pc. Stringent new rules on mortgage affordability could force borrowers to prove that they could afford repayments almost twice as high as the expected monthly cost of their loan. The Bank of England announced the beefed-up rules on affordability or read more

Bank of England TO KEEP BASE RATE AT .25%

The Bank of England’s Monetary Policy Committee has voted by a majority of 5-3 to maintain Bank Rate at 0.25%. Three members, Kristin Forbes, Ian McCafferty and Michael Saunders, voted to increase Bank Rate by 25 basis points. The meeting is Forbes' last before she completes her three-year term on the committee at the end of this month. Reasons for an immediate increase in Bank Rate included inflation reaching 2.9% in May, above the MPC’s expectation, and pay growth has moderated further from already subdued read more

A third of interest only mortgage to mature by 2020

Over £50 billion worth of interest-only mortgage capital is due to be paid off by 2020, according to research from Leeds Building Society. This figure represents just over 450,000 interest only mortgages in the UK and is more than one-third of the total outstanding UK interest-only mortgage stock, currently standing at 1.6m mortgages. Almost 136,000 interest-only mortgages are due to mature this year alone, with a value of almost £16 billion. Richard Fearon, Chief Commercial Officer of Leeds Building Society, read more

Over 65’s to have the highest mortgage debit than ever before

The amount of mortgage debt held by over 65s is set to increase by more than £19 billion by 2030, from £20.1 billion to £39.9 billion, according to a new study by ILC-UK and the Building Societies Association. The report shows that current economic trends such as house price inflation, tighter credit conditions and low real wage growth will cause a significant shift in the customer base of the mortgage market over the next 13 years. Since the financial crisis, home ownership amongst 20-29 year olds has fallen from read more

Mortgage customers losing £1000’s because of apathy

The research from L&C Mortgages also discovered that 30 per cent or 3.4 million households do not know their current interest rate of their mortgage, and with a total £2.78 billion in lost. ‘Lack of awareness’ Standard Variable Rate mortgages (SVR) appear to be the biggest offenders. With 36 per cent of homeowners on SVR mortgages which tend to be higher sees homeowners lose hundreds every month. David Hollingworth from L&C Mortgages explains, “It’s worrying to see so many people still on a Standard Variable Rate read more

Personal loans interest rate lower than mortgages

Personal loan rates have tumbled dramatically in the past five years and have now dipped below 3pc for the first time - making them cheaper than many mortgages. Sainsbury's Bank now charges customers 2.9pc to borrow between £7,500 and £19,999. Customers with Nectar cards will pay an even lower rate of 2.8pc if the term is more than three years. This makes the loans cheaper than many mortgages. The average standard variable rate on a home loan is 4.62pc, and even the lowest standard variable rate, from Stafford read more

Deputy Governor for Markets and Banking at the Bank of England, says that “there is no doubt in my mind that the UK is experiencing a sizeable economic shock

Minouche Shafik, Deputy Governor for Markets and Banking at the Bank of England, says that “there is no doubt in my mind that the UK is experiencing a sizeable economic shock in the wake of the referendum". In a speech at Bloomberg’s Markets Most Influential Summit, Minouche added that “it seems likely to me that further monetary stimulus will be required at some point in order to help ensure that a slowdown in economic activity doesn’t turn into something more pernicious”. Shafik said that any need to reallocate read more