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Lenders still not increasing rates after base rate increase

Lisa Taylor, analyst at, says: “Three weeks on from the MPCs decision to increase bank base rate, we are still waiting for 39% of mortgage lenders and 20% of savings providers to announce any increase to their rates.

“To date 61% of mortgage lenders have increased their SVR by between 0.20% and 0.34%, with 68% already charging the higher rate to their new customers. As expected within in this competitive market, the vast majority of lenders have passed on the 0.25% increase.

“The average of these new SVR rates currently stands at 6.58%, over 1.50% above bank base rate. So for any borrower paying a lender’s SVR this can be a very costly time, but we need to remember that these increases will also have an impact on any mortgage which rate is linked to an SVR, these normally being discounted deals.

“We are still waiting announcements from some of the larger lenders, namely HSBC and NatWest. The Woolwich announced this week a rise of 0.30% to 7.14%, but again, it does currently not offer any SVR linked products.

“We anticipate many lenders are waiting for December 1 to announce, so next week should be fraught with activity.”


LMC revamps specialist deals

London Mortgage Company has launched a number of sub-prime and buy-to-let deals. LMC is now looking at County Court judgements based on number rather than value, as well as offering just two LTV bandings with the aim of simplifying its product structure.

Nationwide must want to be a bank

Nationwide has been doing some strange things recently that might make one think it has aspirations to be a bank rather than a cosy society.First it announced the takeover of rival mutual Portman and then it wasn’t as open and honest as you would expect when a laptop containing information on thousands of customers was […]

Top networks show significant change

A poll of over 200 financial advisers indicates that significant membership distribution changes have taken place between nine of the largest mortgage networks over the last six months.Conducted by Paragon Mortgages, the survey shows Openwork has enjoyed particular success since its launch, and although many of its members are former members of the old Zurich […]

GMAC-RFC completes ninth portfolio sale

GMAC-RFC has made its ninth portfolio sale to West Bromwich Mortgage Company. The 150m deal was completed on November 30.Craig Beresford, director of asset sales at GMAC-RFC, says: We are delighted to have been able to trade over such a long period of time with our partners at the West Bromwich. It is testament to […]

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Health Shield announces strong results

Health Shield, a corporate health cash plan provider, has announced that it has increased gross annual premium income to more than £25m in another year of strong organic growth.


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