View more on these topics

A&L says rate decision was expected

Mehrdad Yousefi, head of intermediary mortgages at Alliance & Leicester says the Monetary Policy Committees decision to maintain rates at 4.5% was expected.

He says: “Despite murmurings of a rise this month, it is not a surprise that the MPC has decided to maintain rates.

“The committee is likely to have been split in its decision on whether or
not to raise interest rates despite recent credit growth in the economy.

However, last month’s minutes suggest they will look to maintain rates in
the short term.

“Most commentators agree that we are unlikely to see any
movement in rates until August at the earliest, when the Bank of England
issues its quarterly inflation report.

“The current stable housing market and single digit rise in house prices
occurring for the first time this year further underlines the need to
maintain interest rates at this stage.

The decision to raise or reduce interest rates will remain finely balanced for the remainder of the year and will be subject to both economic statistics and the stability of the wider financial markets.

“Homeowners and prospective purchasers should take this opportunity to look at current tracker mortgage deals, with many deals currently priced lower than the base rate. Households on tight budgets may still prefer the
certainty that fixed rates offer.”


Industry divided on Tenancy Deposit Scheme

Paragon Mortgages and BM Solutions dispute claims from Landlord Mortgages that further regulation will stifle the buy-to-let sector. Research from Landlord Mortgages has disclosed that the Tenancy Deposit Scheme will lead to an increase in the number of landlords using letting agents. In 2005, 22% of landlords who used letting agents intended to manage their […]

Assetz BDM

Property investment specialist Assetz has recruited Nick Booker as its business development manager, with the task of raising awareness of the Assetz property funds within IFA networks.

Platform prepares to take on rivals

Platform is planning a series of initiatives in anticipation of the plethora of new entrants lined up to burst into the specialist lending market. It has reacted by reviewing its strategy and widening and enhancing its product range. The first initiative launches today with a revised product range including additions to lending criteria and new […]

CML says technology poses threat to packagers’ role

The Council of Mortgage Lenders has warned that electronic packaging could pose a threat to packagers and that they must embrace technology to survive. The CML says that in addition to regulation, technology and online applications that simplify and speed up the process for brokers threaten the added value packagers have always been able to […]

Guarantees in the retirement income market

Lorna Blyth, Royal London  Do guarantees benefit customers and, if so, when? To answer this conundrum we commissioned Millimans, a global actuarial consulting firm, to conduct an independent review of the UK retirement income market and whether guarantees really do offer customers better value for money. The brief The study was one of the most comprehensive undertaken […]


News and expert analysis straight to your inbox

Sign up