View more on these topics

MPC votes 8-1 in favour of keeping base at 0.5%

Bank-of-England-BoE-Clock-700x450.jpg

The Bank of England’s Monetary Policy Committee has once again voted to keep base rate at 0.5 per cent.

Minutes from yesterday’s meeting show just one member, Ian McCafferty, voted for a rise. He believed rates should rise 0.5 per cent because “the path of domestic costs was more likely to lead to inflation exceeding the target in the medium term than was embodied in the Committee’s collective November projections”.

The minutes reiterate that when rates rise they will do so slowly, due to the “likely persistence of headwinds weighing on the economy”.

The committee voted unanimously to maintain its quantitative easing programme at £375bn.

Legal & General Mortgage Club director Jeremy Duncombe says: “Borrowers will likely greet today’s decision by the Bank of England with apathy, but must not believe this low interest rate environment will last forever. Earlier this month, George Osborne warned mortgage holders must be prepared for a UK interest rise in 2016, following the hike in US rates last month.

“Although such a rise was unlikely in January, it’s crucial that borrowers on an SVR or those at the end of their current agreement look to secure a more beneficial rate by remortgaging now, before lenders price-in the inevitable rise. Banks will start to include any changes in the base rate in their calculations well ahead of a decision by the Monetary Policy Committee.”

Recommended

Ian Andrew 700x450

Nationwide sets out MCD changes

Nationwide has outlined how it will comply with the new rules introduced by the Mortgage Credit Directive. The society has confirmed it will use an updated KFI document, known as the KFI+, rather than the European Standardised Information Sheet. As the MCD requires lenders to provide the customer with a binding offer and a reflection […]

Money

TSB to increase B2L assessment interest rate

TSB will increase its interest rate for buy-to-let affordability calculations from 5 per cent to 5.5 per cent from Tuesday. The rise will affect mortgages of more than 65 per cent LTV, according to a broker note released this morning. The notional rate for loans of less than 65 per cent LTV will stay at 5 […]

David-Cameron-700x450.jpg

David Cameron: We have no plans in event of Brexit

Prime Minister David Cameron says the Government has made no plans in the event that Britain votes to leave the European Union . Speaking on the BBC’s Andrew Marr show, Cameron said the Civil Service was not preparing for Britain leaving the EU after the in-out referendum. He added leaving the EU was “not the […]

Mortgage Mole: Stonebridge does Tough Mudder

Stonebridge Mudders I take my hat off to the staff of Stonebridge Group, who managed to raise more than £15,000 for Macmillan Cancer Support and Cancer Research UK last year. Stonebridgers took part in a range of fundraising activities, including donating at the network’s annual conference and taking part in a “mud run” (see photo […]

What attendees thought of the LendInvest Property Development Academy

LendInvest ran its first Property Development Academy in London last month. Attendees from all over the UK gathered to learn how to better equip themselves with the skills they need to grow their property development portfolios. Speakers from CBRE, Gleeds, Arcadis, Gowling, Residential Edge and AZ Urban Studio gave their insights into their respective fields […]

Newsletter

News and expert analysis straight to your inbox

Sign up