View more on these topics

‘Action is needed soon to slash base rate’

Wave director of sales and distribution Mehrdad Yousefi says the Bank of England’s monetary policy committee needs to cut bank base rate by 0.5 per cent by early summer to boost the struggling mortgage market.

He says: “We need interest rates to be reduced from 5.25 per cent to 4.75 per cent by early summer. That would be very encouraging. It would make sure it was less bruising for consumers and the housing market.”

Yousefi says the move would reduce borrowing costs and help borrowers become more optimistic.

He warns that confidence in the market is rapidly slowing and was dented further in last week’s Budget when the Chancellor failed to announce any specific proposals to help the market.

Yousefi says the Treasury’s forecast for growth this year of between 1.75 per cent to 2.25 per cent might be too optimistic as a result of this lack of confidence.

He says: “The housing and mortgage finance market is critical to the wellbeing of the economy. There needs to be some action.”

Recommended

New Nucleus board appointments announced

Nucleus has announced the appointment of a new board following a re-election. Founder firm representatives on the board have been joined by Richard Stocks from FA Watts and Graham Laverick of WR Financial. The other board members are Bruce Wilson of Helm Godfrey, John Moore of Central Investments, Ian Thomasson of Avidus and Scott Lang, […]

MI business

There is a cold regulatory wind blowing through financial services from Canary Wharf.

Royal London cuts 25-year bonuses

Royal London has increased the regular-premium final bonus rates on its 10-year with-profits policies from 11.1 per cent to 25 per cent. Regular-premium final bonus rates for 25-year policies have been cut from 140.1 per cent to 126.4 per cent.

Bullivant quits CII for chief role at Annuity Direct

Chartered Insurance Institute deputy director general Bob Bullivant is joining Annuity Direct as chief executive.He will be taking over dayto-day management and business expansion from managing director Stuart Bayliss, who will focus on company development and public policy.Bullivant says : “I have very much enjoyed my role with the CII but the opportunity to take […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment