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MPC raises rates 0.25 per cent

The Monetary Policy Committee has today announced interest rates will rise 0.25 per cent to 4.25 per cent.

But in response National Association of Estate Agents chief executive Peter Bolton King says rates were likely to climb to around 4.75 per cent by the end of 2004.

He says whenever the Bank of England puts up rates inevitably a sense of uncertainty is created.

He believes rises in themselves will not damage the housing market because affordability is healthy in historic terms.

He says the last quarter point hike did not affect the market and he does not believe this rise will have any material effect except perhaps on first time buyers who will be further overstretched.

Bolton King says: “The Bank of England is not charged with controlling the housing market but will have been worried that mortgage borrowing has surged by over £9bn in March up 1.2 per cent from February and 15 per cent from a year ago. Clearly that sort of borrowing can not be sustained but we believe the housing market is buoyant and not over-heated in the present economic climate.”


Towry Law Intl could face £300m misselling claims

Towry Law&#39s offshore subsidiary is facing legal action that could result in compensation of more than £300m. Clients in Cyprus, the Middle East and Asia have alleged that Towry Law International missold hedge funds and geared with-profits bonds. An action group of clients in Cyprus has started legal proceedings against TLI. It argues that the […]

First &#39minded to authorise&#39 letters are sent out by FSA

The FSA has sent the first batch of 1,000 letters to firms it is “minded to authorise” to carry on mortgage and general insurance business. Firms getting MTA letters are set to receive formal authorisation later this year unless significant changes in their circumstances lead to reconsideration by the FSA. Formal authorisation will be given […]

&#39Budget changes will not affect ScotEq RIT&#39

Scottish Equitable says changes to the taxation of gifts with a reservation announced in the Budget will not affect the relaunch of its reserved interest trust. The company says the product is the first discounted gift trust to allow a choice in the way withdrawals from capital are made. The RIT allows investors to potentially […]

&#39Demand for long fixes rising&#39

Consumer interest in long-term fixed-rate mortgages is on the rise, according to Cheshire Building Society. CBS marketing director Jason Gaunt, speaking at the Marketing Week Mortgage Lending Strategy Summit in London last week, said there is a clear increase in demand from borrowers for loans fixed over a long period. According to a survey in […]

Tapering of annual allowance – adjusted and threshold income

The definitions of adjusted income and threshold income used to determine whether, and to what extent, someone’s annual allowance will be reduced can be confusing.  Here we try to make sense of it all. The annual allowance will be reduced for high income individuals from 6 April 2016.  Our previous article Tapering of annual allowance […]


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