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Brown dismisses IMF housing concerns

Gordon Brown has dismissed fears of a housing market meltdown, following warnings from the International Monetary Fund that it was the biggest risk economic stability in the UK.

Last week the IMF forecast growth of 3.5% in the UK, but warned that it was concerned about the possible effect of rising interest rates on the housing market.

But speaking at the spring meetings of the IMF and the World Bank in Washington over the weekend, Brown challenged the funds&#39 findings, countering that “while house prices have certainly risen, people&#39s mortgage payments as a share of their income, particularly for new owners, are still far below what they were 10 years ago.

“The reason that this is the case is that the UK has achieved a greater degree of stability as an economy; the UK has not had the interest rates that were at 10% during the last world downturn, under the Conservatives. It was in these situations that people suffered a great deal.

“I expect that while consumer spending will continue to grow, it will not grow at so fast a rate as in previous years.”


MPC will have to perform a balancing act

Swap rates fell slightly last week but not enough to affect any lender rate decisions. • One-year money is down 0.04% to 4.75%• Two-year money is down 0.05% to 4.94%• Three-year money is down 0.02% to 5.06%• Five-year money is down 0.02% to 5.17%Last week&#39s raft of fixed rate increases had been expected – Halifax, […]

Mortgage Choice to give away signed Irish National rugby shirt at Manchester Expo

Mortgage Choice is offering the chance for someone to walk away with an signed Irish National Rugby Team shirt at the Manchester Mortgage Expo. The shirt is one of only two similar shirts, the first auctioned at the England-Ireland game in March successfully raised £700 for the benefit of Cancer Research. Manchester Expo 2004 runs […]

CETA Life links up with Mortgage 2000

CETA Life, a subsidiary of CETA, has linked up with Mortgage 2000 to provide an integrated mortgage and life system for financial advisers. The technology link, which involves Mortgage 2000&#39s sourcing software Encore and CETA&#39s Life system, enables brokers to enter client data into the Mortgage 2000 Encore system and obtain a life quote at […]

Broker accused of duping clients

A Newcastle-based brokerage was in the spotlight last week over claims it was misleading Right to Buy borrowers and flouting the Consumer Credit Act. Using hidden cameras, the BBC&#39s Watchdog filmed advisers at Nationwide Mortgage Services stating that getting a mortgage was a complicated practice and making clients sign contracts allegedly legally binding them to […]


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