Mortgage lenders are expecting an end to short-term fixedrate deals due to the rising costs they are facing to borrow money.Platform head of marketing Paul Hunt questions how long lenders can continue offering cheap two-year fixes and predicts that recent swap rate rises are a precursor to an imminent interest rate rise. Swap rates for a two-year fix are approaching 5.5 per cent and have been creeping up since they hit the 5 per cent mark in June compared with below 4 per cent in July 2003. Many commentators exp-ect bank base rate to rise to 5 per cent in the next few months. The last increase came in August, when the rate went from 4.5 to 4.75 per cent. Hunt says: “The swap rate rises indicate that the Bank of England base rate will go up to 5 per cent and maybe even another rise after that. This means two-year fixed-rate deals will become expensive for lenders. The market is still demanding fixed rates but how long can that continue? Will trackers become more attractive now?”
Standard Life Bank is urging brokers and lenders to get to grips with technology or risk losing business. The bank’s study shows that 32 per cent of brokers do not recognise they may lose business if they are not available online to consumers. The firm also says lenders do not always set the best example […]
The Way Group has designed an inheritance tax planning product aimed at people who have a high net income.
Leeds Building Society has launched a 10-year fixed rate homeloan at 4.99 per cent.The mortgage has no higher lending charge, is available up to 90 per cent loan to value and allows 10 per cent capital repayments each year without penalty. There is also a fee free version for customers who require help with fees.Head […]
Autumn is the time of year when we have the opportunity to attend events focused on issues relevant to our business.
By Kunal Desai, Head of Indian Equities The Neptune India Fund’s investment process serves as a key differentiating feature of the portfolio versus its peers, contributing to its significant outperformance under Manager Kunal Desai’s tenure. Focusing on industry disruption, accounting quality, liquidity and corporate governance, Kunal sets out three stocks that he’s buying in the […]
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