View more on these topics

Pace of swap rate increase slows slightly

Swaps continued their upward march last week but the increase seems to have slowed of late.

• One-year money is up 0.07% to 5.38%

• Two-year money is up 0.06% to 5.53%

• Three-year money is up 0.06% to 5.61%

• Five-year money is up 0.05% to 5.64%

Portman increased its two and five-year fixed rates and The Mortgage Works launched a two, three or five-year fixed buy-to-let deal at the same rate of 5.99%. It also uses a sliding scale of LTV for the rental calculation – the lower the LTV, the lower the percentage on the rental calculation. A great piece of innovation.

While BMS is undoubtedly the king of the online mortgage I am not keen on its email rate update system which tells you it has launched new rates but when you click on the hyperlink it does not tell you which of the old rates have been withdrawn. I would prefer a simple email list of the rates that are being pulled and their replacements. If it wants to be super-efficient it could add the club exclusives that are being pulled too.

The only rate Halifax withdrew last week was its 4.99% two-year fixed leaving the others, including a two-year fixed remortgage rate at 5.29%.

But it would appear that Halifax has some problems with its online proposition. It seems the most recent upgrade is not working which has left brokers unable to key in applications. Having to key in applications itself may put a big drag on Halifax&#39s efficient service, especially with its excellent rates.

Rate of the week is Accord&#39s LIBOR tracker. It is fixed for three months at 3.19% and then at US three-month LIBOR (currently 1.55%) plus 1.89% for five years. It is a great way to benefit from the low US rate without having the exchange rate risk.

Villain of the week is Nationwide&#39s takeaway remortgage team. Taking two to three weeks to look at an application, a further two to three weeks to look at a valuation and making it impossible to get updates is just not good enough.

Being busy is understandable but not returning phone calls and emails until a member of the senior management is involved is just rude. I guess it is not interested in intermediary business.

Three-month LIBOR is up 0.06% at 4.83% and as the current base rate is 4.50%, the City is expecting at least a 0.25% increase in the next three months.

Twelve-month LIBOR is up 0.05% at 5.40%, indicating at least a 0.75% increase in the next 12 months.

Bank of England governor Mervyn King severely dented his chances of being invited to the National Association of Estate Agents Christmas dinner by making a speech warning that house prices may start to fall.

King also said that people should be wary of taking the plunge into buying property and that prices were now “well above what most people would regard as sustainable in the longer term”. And he gave a clear indication that there are further interest rate rises on the horizon.

In the meantime the UK inflation rate has surged to its highest level in over a year as high oil prices push up transport costs.

Jonathan Cornell is technical director at Hamptons International Mortgages

Recommended

MPLC stalls latest Von Daniken appeal bid

Samantha Von Daniken, the homeless mother of three forced to live in her Mercedes 230 after the house she was living in was repossessed by Mortgages PLC, claims the sub-prime lender adjourned her appeal on the repossession last week without her knowledge. Her appeal was due to take place on Friday June 18 at Norwich […]

Shed boom adds value to homes

Over one fifth of UK homeowners have added a shed, workshop or garage to their property in the past five years, a new survey reveals. The poll, conducted by esure home insurance, shows that of the 2.2 million outhouses built in the past year, 1.5 million were sheds. This is thought to be the result […]

Savings to be made for homeowners

While millions of UK homeowners are reeling from two successive base rate rises adding around £30 a month to the typical monthly repayments, Moneynet (www.moneynet.co.uk) says the average homeowner can claw this back and more by fine-tuning key outgoings. Research out this week from the online financial supermarket has found that simply by switching life […]

Aspiring homeowners say government not doing enough

FirstRungNow Ltd has undertaken a survey to gauge the thoughts of potential first-time buyers stuck in the rental trap. Of those surveyed, 81% said they would prefer to be homeowners and 94% said they believed the government is not doing enough to help. There is a lack of optimism for the future too. When asked […]

Newsletter

News and expert analysis straight to your inbox

Sign up