View more on these topics

Editor’s Note: Back to ‘the norm’…?

Rebekah Commane

Moments before we went to press, the Bank of England confirmed what many had predicted: a base rate rise of 0.25 per cent.

Mostly the mortgage market was unperturbed, believing this was simply a return to a more ‘normal’ level of 0.5 per cent, where the rate had stood for nearly a decade before being reduced to 0.25 per cent last year.

Due to the intense speculation preceding the rise, and the coverage it
received when it came to pass, it’s inevitable that mortgage borrowers will have questions and concerns about the implications, particularly people on variable rates and would-be first-time buyers. So brokers can prove their value by contacting clients to both educate them and allay fears.

Within minutes of the rate increase being announced, speculation had already moved on to the potential for a further rise in the near future, but we will let this one bed in for now.

It has to be said that our timing in going to press wasn’t ideal. These things are planned well in advance and, as a result, some of our industry comment does reference a ‘potential’ rate rise. Such is the nature of a print proposition! However, as always, our commentators nevertheless offer well-informed insight on the state of the market.

In the past week the Government has also completed its draft bill to ban letting agents’ fees. While some may fear that extra costs will end up in the laps of long-suffering landlords, hopefully this bill will be a positive for the residential mortgage market as those saving for a first home will have a little more change in their pockets to put towards a deposit — assuming rents aren’t pushed up as a result of the bill, that is.

This month’s mag is a whopper, full of news, including the reform of FSCS levies; features, such as our quarterly lending survey; and all the usual favourites. For starters, our cover feature analyses the potential shape of the mortgage industry in 10 years’ time.

So grab a cuppa and transport yourself to the late 2020s!

Recommended

Parliament-UK-London-Thames-Building-700x450.jpg

Homes and Communities Agency to rebrand as Homes England

The Homes and Communities Agency will rebrand as Homes England, according to today’s Government housing white paper. The paper, published by the Department for Communities and Local Government, says a review of the HCA found the body should still play a part in delivering homes but still needs to do more. The white paper says: […]

Young-man-working-on-laptop-technology.jpg

Bank of Ireland introduces online offer service

Bank of Ireland UK has launched a new online offer service for brokers. From today, mortgage offers will be available for brokers to view and download online via Bank of Ireland UK’s mortgage application system. The system means brokers no longer need to wait for paper copies. Once the offer has been produced, brokers will […]

2

One for all or all for one? Weighing up the pros and cons of going AR/DA

Debate rumbles on over which status is better for brokers: AR or DA? Choosing whether to become an appointed representative of a network or directly authorised is one of the most important decisions made by brokers. The main advantage of being a DA, they say, is in having total control of one’s business and avoiding […]

2

Tread carefully with lifetime lease options

Following the growing coverage of so called sell-and-rent-back deals, I’ve been approached by a number of colleagues who have come across similar plans.

Newsletter

News and expert analysis straight to your inbox

Sign up