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Base rate increase bad news for borrowers, says Moneyfacts

Over the past year base rate has increased from 3.75% to 4.50%, a change of 0.75%. This is bad news for borrowers, with mortgage rates on the up, says

The best buy charts on show a cross-section of some of the best products on the market and show a comparison of rates available in June 2003 (base rate at 3.75%) compared with June 2004 (base rate at 4.50%). Although base rate has only increased by 0.75%, the average best buy has increased by up to 1.76%.

For example, in June 2003 the average best buy for a fixed rate with no tie-in, was 3.68%. For a £100,000 mortgage over 25 years, monthly repayments would be £510.33. In June 2004, the average best buy for the same type of rate is a massive 1.76% higher at 5.44%. Repayments on this would be £610.51 – an extra £30,054 over the 25-year term.

Emma Butler, Moneyfacts web editor, says: “With speculation of further base rate increases it may be worth people looking into good fixed and capped rate deals sooner rather than later. For those borrowers who are already stretching themselves this may be even more important. For instance, on an interest-only mortgage of £100,000, even just a 0.5% increase in rates would cost over £40 extra a month.”


Genesis appoints network services manager

Genesis has appointed Anita Carthew as network services manager. Carthew will take direct responsibility for implementing and managing the services Genesis offers to its franchisees, licensees and appointed representatives. Carthew joins Genesis from Exclusive Connections where she managed the relationship with packagers and lenders. Carthew is FPC and CeMAP qualified and has nearly 20 years […]

TEPs can help the property ladder climb, says Policy Portfolio

With parents expecting to give their children almost £24,000 to help them get a foothold on the property ladder, traded endowment policy specialist Policy Portfolio is suggesting that parents consider investing in TEPs to be assured of a guaranteed minimum sum to assist their offspring. Brian Goldstein, managing director of Policy Portfolio, says: “With the […]

Urban property buyers search for rural trappings

Green spaces, a rustic, homely environment, fresh air and a &#39village&#39 tag are the new must haves when buying a home, according to British homeowners. Urbanites keen not to trade in city living for a life in the country still want to enjoy the trappings of rural living. According to the latest biennial Cappuccino Test […]

Is Gummer the right man to chair AMI?

As well as his main role as Conservative MP for Suffolk Coastal, Gummer is chairman of the Association of IFAs, AMI&#39s sister trade body. With the market in a state of flux, the AMI board chose an impartial chairman who wasn&#39t from a network or a directly authorised firm. So, Mortgage Strategy asks: Do you […]

Auto-enrolment: tips for employers

The Pensions Regulator (TPR) has released advice on communications for employers, including three tips to help you with your auto-enrolment duties. 1. Allow enough time to select your pension schemeIt’s recommended that you start to prepare for auto-enrolment at least 12 months in advance of your staging date; additionally, give yourself time to choose the […]


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