View more on these topics

Brokers divided over MPC base rate decision

Research by Mortgage Express shows brokers are split over whether rates will change at the next MPC meeting, with 53% expecting a rate hold, versus 47% expecting them to rise.

Overall, 224 brokers were surveyed this week by Mortgage Express asking for their view of how the MPC would vote at next weeks meeting (5-6 July) which could see an 11th consecutive hold.

Peter Charles, chief economist at Mortgage Express, says: This is a very interesting result.

“Having spent nearly a year at 4.5%, and with a 7-1 majority at the last vote, the general consensus is that rates will remain unchanged in July.

Brokers appear to be picking up on signals that rates could see a 25bp rise before the end of the year.

“Earlier this month, the Governor of the Bank of England, Mervyn King, warned that there had been signs of increased inflationary pressures in the main industrial countries. These are not yet apparent in the UK.

“But if the boost to spending provided by the World Cup continues on into the second half of the year, then the MPC must be expected to raise rates. However, for the moment, it appears that opinion is split over what the next MPC meeting will bring.”


Compliance system for all brokers

Smaller brokers will reap the benefits of Mortgage Brain buying The Key as the move gives them an advanced but affordable compliance management system, says Frank Eve

We use SPASU to help our most vulnerable clients

From Bill Armstrong Simon Burgess (Mortgage Strategy Letters June 19) has an imperfect overview of the accident, sickness and unemployment cover market. All he can do is rant on about the evils of single premium cover. There is a place in the market for SPASU and the fact he does not market it leads me […]

Nationwide launches new guaranteed equity bond

Nationwide has launched a five-year guaranteed equity bond, with a guarantee to return the original investmnet plus 10%.The five-year bond guarantees to return the original investment plus 10% or up to 55% of any growth, whichever is greater, in the value of the FTSE 100, Nikkei 225 and DJ EuroSTOXX 50 indices.Nationwide is also offering […]

Brokers told to get into sub-prime

The evolution of the sub-prime market over the past decade means the sector has never been more accessible to brokers, says Guy Batchelor, sales and marketing director at Platform. Speaking at the Mortgage Summit in Jerez, he told delegates that brokers should embrace it and its earning potential.


News and expert analysis straight to your inbox

Sign up