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Verso puts advisers on rate-rise alert

Specialist lender Verso is urging mortgage intermediaries to be ready for an increasing number of queries from clients following indications that the Bank of England is set to raise interest rates.

Last week, the bank&#39s quarterly inflation report raised its projections for growth and inflation, with deputy governor Mervyn King saying the monetary policy committee “stands ready to counter building inflationary pressures as and when they emerge.”

Verso says the media speculation that this announcement has created will leave borrowers wanting to know the potential effect of an increase in rates on their mortgages.

Although Verso believes any base rate rises are likely to be modest at the outset, it believes they could cause a flood of enquiries to advisers as purchasers and borrowers wanting to remortgage try to pin down a fixed or capped rate.

It says advisers should ensure they are aware of all the options available for clients who may not fit the criteria for mainstream lenders but who could get a good deal from niche banks.

Director of business development Eddie Smith says: “Even if rate rises do not actually happen until the autumn, increased speculation in the press will have the same effect in boosting interest in mortgage options.”

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