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A sensible base rate would be 4% rather than 0.5%

It doesn’t matter how low interest rates go if lenders are not lending.

In fact, low interest rates can be dangerous. Although some monthly mortgage payments have fallen to tiny amounts, what will happen when rates go up?

A sensible base rate would be 4% rather than 0.5%. No matter how much money we pump into banks they will not lend. We brokers see this every day.

Lending to businesses also needs to rise so unemployment can be tackled.

But until banks change their credit scoring systems lending won’t increase. If the government pours more money into these institutions it must monitor where it is going. I’m no politician but I pride myself on my common sense. If I can see what needs to be done, why can’t the powers that be?

Gail Andserson

AGS Mortgage Solutions

By Email


Cattles suspends more directors

The crisis at Cattles showed no sign of easing last week after the sub-prime lender suspended a further three directors pending the out-come of a review of its accounts.

Europe: banking on a recovery

Neptune video: Europe — banking on a recovery

Arguing that the eurozone crisis is over, watch Rob Burnett, head of European equities at Neptune, discuss the sectors that he’s investing in to harness the recovery. 

In the video, Burnett addresses the following: 

• The primary drivers of the eurozone’s economic recovery
• The turnaround in individual countries’ current accounts
• Sectors best positioned to harness the recovery, without offering undue exposure to risk


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