View more on these topics

MPC holds base rate at 5.25%

The Bank of England’s Monetary Policy Committee has held interest rates at 5.25%.

The decision comes despite expectations that there could be up to three interest rate cuts this year, the first of which came last month as the rate was slashed to 5.25%.

The Council of Mortgage Lenders, which is predicting three cuts this year, says base rate is just one of many factors that determine the cost of funds to lenders.

The trade body says that even if further interest rate cuts emerge, it should not be assumed that this will automatically result in a cut in lenders’ standard variable rates or discounted rates.

Research from BM Solution reveals that brokers are also expecting further interest rate cuts this year.

Nearly half of brokers (49%) questioned believe that the interest rate won’t dip below 5% this year.

More than a third expect rates to drop as low as 4.5%, which would require another three reductions.

The vast majority of brokers (83%) believe that they have seen the rate peak for 2008, believing that 5.5% was the highest it would be this year.

Just over a third of brokers believe that the year will end with a rate of 4.75%, whilst 47% think 5% is more likely.


Interest rate freeze will hurt borrowers

The Bank of England’s decision to freeze interest rates at 5.25% will deal another blow to borrowers, claim firms across the mortgage industry.Many brokers and estate agencies believe the Monetary Policy Committee needs to cut base rate next month to alleviate problems now affecting consumers. Jonathan Cornell, managing director at Hamptons International Mortgages, says: “With […]

Watch out when implementing TCF

Small brokers in particular must ensure the regulator does not uncover significant TCF failings as consumers are likely to see the initiative in a positive light, says Justine Tomlinson

MAB launches POS system

Mortgage Advice Bureau has launched its MIDAS point-of-sale system following a successful pilot. It analyses lead generation sales results and sources mortgages while monitoring case administration and compliance.

Trusts: Easier than you think?

Protection providers often extol the benefits of placing plans in trust. The advantages for clients are widely recognised and numerous – inheritance tax mitigation, avoiding probate delay, controlling claim proceeds, and so the long, familiar list continues. Yet, dismissed as unnecessary form-filling, or simply viewed as irrelevant in the context of a mortgage sale, less […]


News and expert analysis straight to your inbox

Sign up