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Borrowers can now benefit from the lowest mortgage rates in years, according to calculations from two well-known financial sites.
Research from Moneysupermarket.com suggests that increased competition between lenders has driven down the costs of both fixed-rate and tracker mortgages. This has left rates at their lowest level since the Bank of England cut its base rate to 0.5% in 2009.
Divisions at the heart of the UK’s interest rate policy are becoming starker – posing a dilemma for mortgage borrowers.
The split has occurred between members of the Monetary Policy Committee (MPC), which sets the Bank of England’s influential base rate, known as “Bank rate”. On one side are those who say that a rise in rates is needed to tackle high inflation, currently running at 4.5%. They argue that the Bank’s “wait and see” approach risks undermining its credibility – with the result that the public will begin to anticipate higher prices. Higher wage demands could push up prices further, leading to an inflationary spiral.
A recent opinion poll suggests that more than a quarter (28%) of us believe interest rates have risen in the last 12 months, while a smaller proportion – 17% – think they have fallen.
The poll was conducted for the Bank of England, whose Monetary Policy Committee (MPC) has actually kept Bank rate (often called “base rate”) on hold at a record low of 0.5% since March 2009.
Homeowners could benefit from a combination of low interest rates and stable house prices – despite a sluggish performance from the UK economy.
That’s the suggestion after latest signals on rates from the Bank of England, following upbeat news on the housing market from the respected Centre for Economics and Business Research (Cebr).
Standard variable rate mortgages are coming under fire, after consumer watchdog Which? warned of a squeeze on borrowers from higher interest rates.
Standard variable rates (SVRs) are the headline rates which many borrowers shift onto when their original mortgage deal lapses. According to Which? thousands of those on their lender’s SVR could face financial difficulties when interest rates begin to rise.
Mortgage lending received a welcome boost in May, according to latest figures.
The Council of Mortgage Lenders (CML), reports that gross lending totalled some £11.3 billion, 12% up from the £10.1 billion lent in April, and just ahead of the level for the same period last year.
Soaring rent levels promise good returns for buy-to-let landlords, if figures from LSL Property Services are anything to go by.
According to the residential specialist’s index, average rents in England and Wales rose by 0.5% in May, leaving the typical monthly payment at £696 – 4.4% higher than a year ago. And London saw much bigger increases, with substantial rises too in the North East and East Midlands.
A closely-watched survey has given a downbeat assessment of the state of the housing market outside London.
According to the Royal Institution of Chartered Surveyors (RICS), a growing number of property professionals judged that prices in their area fell during May, while activity levels were subdued.
A member of a crucial Bank of England committee has called for an immediate rise in interest rates to curb inflation.
Martin Weale of the Bank’s nine-strong Monetary Policy Committee (MPC) also warned homeowners and businesses to prepare for significant rises in the cost of borrowing over the next two years.
Small businesses often make the best employers. That’s the impression which emerges from recent research by Microsoft.
An extensive survey shows that the bigger the company, the less likely it is to offer flexible working conditions to its employees. It seems that smaller firms are keen to develop new working methods, often involving new technology. And they are also prepared to be more flexible about working hours.
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