View more on these topics

Bank of England maintains bank rate at 5.75%

The Bank of England’s Monetary Policy Committee voted today to maintain the official bank rate at 5.75 per cent.

Alliance & Leicester director of mortgages Stephen Leonard says the decision shows the Bank of England continues to take a cautious mid to long-term view about inflation.

He says: “For borrowers looking to remortgage or take out a new mortgage this month, a tracker mortgage is a sound option in the current interest rate environment.

“However, borrowers opting for a tracker mortgage should ensure they are financially comfortable enough to withstand an increase in monthly payments should there be any future rate rises.”

The Council of Mortgage Lenders says the move was widely expected but it believes a November cut remains the most likely prospect.

CML director general Michael Coogan says: “We did not expect the Bank to cut rates today, but we do hope for and anticipate a cut in November. Even this is not a certainty though, so borrowers should continue to plan for rates at or around current levels.

“Pricing in the mainstream market is stable, and fixed rates have started falling recently, but there is still uncertainty about how long it will take for stable funding to return to the sub-prime market. In the meantime, borrowers in this sector are facing tighter criteria and higher rates, although the availability of funding does seem to be improving.”


Rock still faces big funding commitment

Northern Rock still faces large amounts of mortgage lending funding commitments at its previous competitive rate, according to John Charcol senior technical manager Ray Boulger.He told the round table meeting that this is on the basis that the average time for an application to complete is 10 weeks and Rock only started to be uncompetitive […]

Pledges, legacies and backtracks

The Tories kicked off the pensions week in fine style by pledging to pay back victims of collapsed pension schemes within three months of the Party returning to office.

Preferred writes to packagers to clarify which criteria will apply to re-offer cases

Preferred has written to packagers and brokers to clarify its policy regarding which product range and criteria will apply to cases requiring re-offer after the October 5 cut-off date.This is in relation to its recent communication announcing new product launches on its core range from October 3 and its shared ownership range on October 10.It […]

ABI warning on FSCS reforms

ABI director general Stephen Haddrill has written to Chancellor Alistair Darling, warning that reforms to the Financial Services Compensation Scheme “must not distort the market for savings or remove all risk”.Haddrill wrote the letter after a meeting of the ABI board to review the implications of the Northern Rock saga.In the letter, he says: “We […]

Mark Page: why my biggest overweight stock is a discount Spanish retailer

Artemis European Opportunities Fund manager Mark Page is questioned about the merits of investing in Spanish supermarket group, Dia. Dia is a 7,000-store Spanish discount supermarket chain. But with cheaper food prices coming on to the market and an improving Spanish economy, journalist Alexis Xydias questions Mark about its inclusion in the Artemis European Opportunities […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm