Among all the expectations, perhaps we lost sight of the real truth: while things may be getting a bit better, we still need to be careful
A fanfare of trumpets proclaimed the starting notes of the Rocky theme tune as the King of the Bank of England waltzed into the ring for the most over-hyped event of the year.
The announcer grabbed the mike: “It’s Suuuper Thuuursday. Let’s get reeady to ruuumble!”
Carney shuffled to the centre and let out a breathless tirade of statistics and reports. The upshot? No change.
Among all the expectations, perhaps we lost sight of the real truth: while things may be getting a bit better, we still need to be careful.
Given last week’s statements, many now do not expect a rate move until May next year – or February at the earliest. This means we may see mortgage rates stabilise once more for a short period, especially as lenders seem to be some way from their targets set at the beginning of the year.
Elsewhere, global growth is still muted due to ongoing talks around Greece and the stockmarket collapse in China. All eyes are now on the US to see if it moves first.
In the markets this week, three-month Libor has quietly snuck up to 0.59 per cent while swap rates have done nothing.
2-year money is unchanged at 1.15%
3-year money is unchanged at 1.39%
5-year money is unchanged at 1.74%
10-year money is down 0.05 at 2.08%
So will we see lenders reverse recent rate rises? All will be revealed next week. For now, Nationwide will accept fixed-term contractors that have been trading for less than two years. They will need at least 12 months’ history or have two years minimum remaining on their contract.
Coventry, meanwhile, has some new five-year fixes from 2.35 per cent at 65 per cent LTV with a £999 fee, while NatWest has reduced rates on its high-LTV fixed rates.
Clydesdale has improved products across the board, with new residential rates available up to 85 per cent LTV from 2.59 per cent and 90 per cent LTV from 3.39 per cent. It has also increased its LTVs on two- and five-year £1m-plus fixed rates.
Elsewhere, Nottingham has launched two remortgage products – both two-year fixes. The rate at 75 per cent LTV is 1.9 per cent and 2.05 per cent at 80 per cent LTV, both with no fees.
I was interested to see Barclays report an influx of wealthy buy-to-let cases after its recent changes, allowing residual income to be taken into account. This is good to hear. Meanwhile, Shawbrook Bank is worth looking at for more complex cases. It has just released some new products and cut rates.
Finally, without being too controversial, can someone please set up a meeting with all the free legal providers to discuss the actual needs of the clients? They are a shambles. If you want to take part, let me know.