View more on these topics

‘Refinance quickly to catch best rates’

Sub-prime lender Victoria Mortgages says borrowers looking to refinance should move quickly to avoid missing out on current deals.

Victoria predicts that high-street lenders will be quick to raise lending rates after last week’s base rate increase.

It says although high-street lenders are funded largely by customer deposits and therefore an increase is not crucial to their business, they will probably waste no time in passing on the latest rise to borrowers.

Victoria says non-conforming lenders, in contrast, have to raise rates because they rely on the wholesale securitisation and swap markets to fund loans.

Nationwide was one of the first lenders to indicate that it would raise rates on variable mortgage and savings products by 0.25 per cent on February 1. Its base lending rate will rise from 6.49 to 6.74 per cent.

Victoria head of business development Simon Read says: “We are beginning to see evidence of an increase in rates as several lenders have announced they will shortly be withdrawing their product ranges, which is the first step lenders take before any repricing. Our advice to intermediaries is to ensure that any client thinking of refinancing should look to make more immediate plans before existing low rates are gone.”

Recommended

Hopes grow for Treasury rethink on PTA tax relief

Aegon Scottish Equitable believes the Treasury may reconsider its position over the withdrawal of tax relief on stand-alone pension term assurance.It is urging IFAs and providers to write to the Treasury and lobby against the U-turn by citing how PTA was helping to close the protection gap. Head of marketing, protection, Rod McKie says: “There […]

Aviva chief Harvey is retiring early

Aviva group chief executive Richard Harvey is to retire in July, earlier than expected.Harvey led the demutualisation of Norwich Union in 1997 and spearheaded the merger of the company with CGU to create Aviva in 2000.He has been chief executive at Aviva for 10 years and is a former chairman and board member of the […]

Reed takes on new role at Threadneedle

Threadneedle Investments has recruited Philip Reed as general counsel, a new role in the senior management team responsible for its compliance, legal and company secretariat departments.

Asset mix has been overegged

Mark Dampier is entitled to believe, whatever the evidence to the contrary, that there is any reliable way of selecting superior active managers cost-effectively but he seems to have been misled on the issue of the importance or otherwise of asset allocation to the investment process (Money Marketing, January 11). He refers in his column […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment