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Rates on the rise again is predicting a lender U-turn on the recent rate cuts in the coming weeks.

The mortgage website says lenders are coming under pressure to raise rates on fixed rate deals following a sharp rise in interbank lending rate LIBOR which has increased by more than 1% in the wake of the global stock market meltdown.

Rates on longer term fixed products have already started edging up but says increases will feed through to popular two and three-year deals. says the best two-year deals rated on true cost start at around 5% and come from the Yorkshire, Abbey and Lloyds TSB.

It says rates on best buy mortgages had fallen by an average of nearly 0.5% in the past six weeks but that the collapse of investment bank Lehman Brothers, the rescue deal for insurer AIG and the share price plunge at HBOS have dramatically changed sentiment.

Eamonn Rice, chief executive of, says: “Just when it looked like there was light at the end of the tunnel we are now heading back to a period of rising mortgage rates.

“Borrowers whose applications are already being processed need to keep in touch with lenders and ensure they receive the rate they have applied for. People who are considering fixed rates should if possible start applying now.”


Meet Labour’s new economic guru

This week I can exclusively reveal that Prime Minister Gordon Brown’s office will soon announce the appointment of David Beckham as the government’s new economic guru. LA Galaxy is thought to have been paid £50m to release him from his contract, ensuring that he is free to sign for Labour. A job title has yet to be decided.

Mike Perry quits HML

Mike Perry, director of sales and marketing at HML has decided to leave the company.Perry joined HML earlier this year from Amber Homeloans, where he worked since 2001.In the meantime Ian Moore, head of business development, will take on responsibility for sales and marketing, reporting to Neil Warman, finance and commercial director.Warman says: “We wish […]

Landlords call for rent-back rules

Nearly two-thirds of landlords polled by research firm BDRC believe sale-and-rent-back should be regulated. The survey of 500 landlords also found that 58% worry that such schemes will be misused by clients.

Lehman Brothers files for bankruptcy

In a move set to send shock waves around the world US investment giant Lehman Brothers has today filed for bankruptcy.The firm revealed this morning that it intends to file a petition under Chapter 11 of the US Bankruptcy Code.Lehman last week reported a $3.9bn loss for Q3 and that it was selling $4bn in […]


Out from the long grass? An IT and NI merger

Those with a long memory will recall that at the start of the last parliamentary term George Osborne announced his intention to merge income tax (IT) and national insurance (NI).  Headline grabbing as the initiative was, the reality of the complexities, challenges and costs of such a move resulted in this idea being kicked into the political long grass.


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