View more on these topics

Labour win will add £65 to the cost of mortgage, says economist

A hung Parliament or Labour win at the general election could add £65 to the cost of the average mortgage, a Citigroup economist has claimed.

The Metro reports that in an analyst’s note, Citigroup economist Michael Saunders says: “Unless we get a Conservative Government with a clear majority, we think gilt yields will have to rise to about 4.75 per cent and higher if inflation remains a threat.”

As the cost of mortgage funding is linked to gilt yields, this would mean that if rates went up by one per cent, it could lead to a £780 annual increase in the cost of an average £112,000 mortgage or £65 monthly increase.


Jelf flexible benefits

In Focus: How to choose a flexible benefits provider — seven top tips

Jelf Employee Benefits looks at some of the key considerations employers should think about when reviewing and choosing a flexible benefits provider. Choosing the right benefits for your employees is one thing but delivering a successful employee benefits strategy is about understanding the complete picture and delivering it in a personalised way so that it resonates with each and every individual in your business. 


News and expert analysis straight to your inbox

Sign up


There are 3 comments at the moment, we would love to hear your opinion too.

  1. ..then maybe savers’ rates could go up – hurrah. Low rates are great for the indebted but people forget the (many more) savers getting very little on deposits for the last year or so…

  2. Savers should be getting their wallet out and spending to help stimulate the economy.

    Sitting at home crying that the interest rate is low isn’t going to solve anything – spend spend spend!!!


  3. christopher .simon 5th March 2010 at 4:45 pm

    Could Mr Suanders be a Tory voter one wonders, I always thought it was the public who decided the nature of the goverment, not the city!!- sorry I must be living in a different dimension

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