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Interest rates increased to 5.25 per cent

The Bank of England has increased interest rates to 5.25 per cent.

The surprise quarter point rise comes after the November increase from 4.75 per cent.

Alliance & Leicester head of intermediary mortgages Mehrdad Yousefi says: “A rate rise to 5.25 per cent at the start of the year has caught the market by surprise, particularly following a period of heavy consumer spending during the festive season. This rise comes a month or two earlier than widely expected as many were anticipating a rise in the first quarter of 2007, but not as early as this.

An increase in rates will signal a tightening of belts for some. Money markets are expecting a further rise in the first half of 2007 and this will impact on the pricing of fixed and base rate tracker mortgages. For those on the look out for a new fixed rate deal, it would be advisable to secure one now rather than adopt a ‘wait and see’ approach. There are also still a number of great value base rate trackers available which are cheaper than short-term fixed rates for those whose financial circumstances are more flexible and able to withstand further rises.”


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Edeus delivers 24-hour remortgage completion

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Fee enterprise

No apologies from me this week for returning so soon in the new year to the subject of fees and commission. The reason for doing so is the dozen or so emails which pinged their way into my mailbox last week following my first column of 2007 on this issue.

Scarborough joins Trigold’s ENC module

Trigold has signed Scarborough as the 23rd lender to support its enhanced non-conforming sourcing module.Scarborough Specialist Mortgages offers a service to the non-conforming lending arena providing a product range including prime to heavy adverse, including specialist buy-to-let and adverse buy-to-let. ENC ensures that lenders’ individual underwriting criteria are included in the system and products are […]


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