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BMS moves to grab more of the B2L market

• One-year money is down 0.13% to 5.25%

• Two-year money is down 0.17% to 5.36%

• Three-year money is down 0.18% to 5.43%

• Five-year money is down 0.17% to 5.47%

Due to previous swaps rises we saw the following lenders pull their fixed rates last week: Northern Rock, Bank of Ireland, The Woolwich, Cheltenham & Gloucester and Co-Operative.

BM Solutions certainly had a busy week. It wants even more of the buy-to-let market. Until now it has been hampered with high LTVs by rental calculation being based on 125% of base rate plus 1.95%, currently a whopping 6.45%. From now on with its lifetime tracker products it will work on 125% of the pay rate. To kickstart this it has launched a pair of highly competitive lifetime base rate trackers, 1.19% over base for life up to 75% LTV and 1.29% over base for life up to 85% LTV, both with no early repayment penalties.

Bank of Scotland is getting ready to launch a large loans range. This is a market it used to dominate and it is good to see it trying to regain lost ground. Rumours abound about a tracker rate at base less 0.51% for two years with no early repayment overhang after the two years.

Three-month LIBOR indicates the City is expecting at least a 0.25% increase in the next three months and twelve-month LIBOR is down to 5.28%, indicating at least a 0.75% increase in the next 12 months.

Mervyn King last week said the Bank has not abandoned its policy of gradual rate rises. He was being quizzed by the Treasury Select Committee on whether rises in May and June meant there was now a more aggressive policy. King denied this, saying a gradualist approach did not mean raising rates every three months.Jonathan Cornell is senior technical director at Hamptons International Mortgages

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