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CML warns of more base rate rises soon

Further Bank of England base rate rises are on the cards after last week’s 0.25% rise to 5%, the Council of Mortgage Lenders is warningMichael Coogan, director-general of the CML, says the decision to increase rates should have come as a surprise to nobody.

He says: “This could mark the start of a cooling off in the housing market as we approach the new year, but that is not necessarily a bad thing. This year has seen record levels of mortgage lending almost on a monthly basis, and modest increases in mortgage costs will help to maintain a sustainable environment.

“But borrowers should be warned that financial markets are expecting yet another rate rise by next spring and now is the time to take action to protect themselves.”

However, the National Association of Estate Agents has pleaded with the BoE to hold back any further rises.

Peter Bolton King, chief executive of the NAEA, says that while the residential market has performed well in 2006, not all areas are the same. While London and the South-East continue to perform well, he points out that some areas are slowing.

He says: “A further rate rise could have a detrimental effect on areas that are already looking slightly flat.”


Give advice on new-builds with care

Around 10% of housing stock purchased at present is new-built and this is often bought prior to completion. This involves the purchaser assuming performance risk on both the contractor and developer.

Heritable Bank launches new products

Heritable Bank has launched two new products, one for residential single property development finance and another for short-term mortgage lending.Heritable Bank will allow up to 100% of build or refurbishment costs to be made available. All of the features are subject to a successful demonstration of affordability rather than being based on income multiples.Colin Stevens, […]

Independent redress plans step in the right direction says NAEA

The National Association of Estate Agents has welcomed plans to bring forward legislation to provide improved arrangements for consumer advocacy and for the regulation of estate agents, as announced in the Queens speech today.A background note issued by the Department of Trade and Industry expanded upon the Consumers, Estate Agents and Redress Bill referred to […]

NHER offers training for energy assessors

With the June 2007 deadline for the introduction of Home Information Packs fast approaching, National Home Energy Rating has launched a training scheme for Energy Performance Certificate assessors. NHER’s domestic energy assessor programme includes eight days of intensive training on construction, thermal physics and energy efficiency. Austin Baggett, head of the NHER scheme, says: “Recently […]

Frexit & contagion risk in Europe

Many commentators have suggested that the UK’s exit from the European Union will trigger a domino effect, leading to its eventual break-up. Neptune’s Rob Burnett discusses the likelihood of this happening. Read more: Important information Investment risks Neptune funds may have a high historic volatility rating and past performance is not a guide for future […]


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