The interest rates on some mortgage products are now almost the same as they were in the summer of last year before the onset of the global credit crunch, according to a recent report. Officials from Moneyfacts have recently researched mortgage interest rates, and have found that in many cases they average rates are only very slightly higher than they were in summer of 2007. (more…)
There has been a great deal of speculation over when and by how much the Bank of England will cut the base interest rate over the next year, with inflationary pressures coupled with the threat of recession making decisions challenging for the Monetary Policy Committee. A number of industry officials have now said that the state of the economy will result in the central bank cutting rates a number of times over the next twelve months, with some guessing that the base rate could fall to 3.5% next year. (more…)
One member of the Monetary Policy Committee, which is involves in cutting rates, has recently called for major cuts to the UK’s base rate in order to avoid an economic slump that could last for a long period of time. The warning comes from MPC member David Blanchflower, who has been consistently voting for a rate cut over recent months at the monthly MPC meetings. However, having been outvoted rates have remained at 5% for the past five months. (more…)
In a recent speech the governor of the Bank of England, Mervyn King, said that there was a good chance that any further interest rate cuts for the remainder of this year would be put on hold, with the central bank now concerned that the soaring rate of inflation is getting more and more out of control. Despite the state of the economy, with many concerned that the nation is on the brink of recession, the governor has indicated that there could be no further interest rate cuts this year. (more…)
Over recent months we have heard a lot about both soaring inflation levels and falling interest rates. Between August 2006 and July 2007 the nation saw interest rates rise five times, each time by 0.25%, taking the base rate up to 5.75%. However, between December of last year and April of this year the base rate was cut three times, again by 0.25% each time. This resulted in the base rate falling to 5% by April. However, since that time the base rate has remained at 5%, and growing concerns over the soaring level of inflation means that further base rate cuts could be off the card for the foreseeable future. (more…)
The Bank of England has announced that the base rate for August is to be held at 5% following the Monetary Policy Committee meeting, which was held last week to determine any movement in the base interest rate. It is a move that has come as no big surprise to most, with soaring inflation levels and the slowing economy making it difficult for the members of the MPC to make any changes to the base rate. (more…)
Earlier this month the Monetary Policy Committee met for its monthly meeting in order to discuss the base rate, and it was decided following the meeting that the base interest rate would be kept on hold at 5%. The base rate was last cut in April, following two earlier rate cuts. However, despite concerns over the slowing economy and the effects of the global credit crunch on consumer finance and confidence the Bank of England decided to focus more on rising inflation levels, thus deciding to keep the base rate at 5%. (more…)
In April of this year the Bank of England cut the base rate for the third time since December of last year, cutting it by a further 0.25% and taking it from 5.25% to 5%. Following the rate cut the majority of analysts and economists predicted that there would not be a further interest rate cut in May, as the central bank has not cut rates back to back for seven years. These predictions were proven right, as the Bank of England announced that there is to be no base rate cut for May following the recently Monetary Policy Committee meeting. (more…)
An industry official has expressed concern that the Bank of England is effectively losing control of retail interest rates, stating that the recent base rate cuts by the central bank have often gone ignored by lenders, who have continued to raise their interest rates despite the base rate cut. Since December there have been three cuts in the base rate, taking it from 5.75% to 5%, but many lenders have continued hiking up the interest rates on borrowing such as mortgages, personal loans, and credit cards. (more…)
Chancellor of the Exchequer, Alistair Darling, has recently announced that he wants banks to do what they can to help the more vulnerable families in the country, stating that banks need to help struggling homeowners in order to reduce the risk of rocketing repossession levels. Both Darling and the Housing Minister, Caroline Flint, have stated that banks need to give more time to families that fall behind with their repayments. (more…)
The Bank of England announced earlier this week that the base rate was being cut by 0.25%, taking the base rate from 5.25% down to 5%. The announcement came after the Monetary Policy Committee meeting on Thursday, but did not come as a surprise to many industry experts who had been expecting the bank to cut rates as a result of the slowing economy and the credit squeeze. (more…)
Homeowners, many of whom are already struggling to try and keep up with mortgage repayments despite the recent interest rate cuts, are facing a real struggle when it comes to coping with their finances according to a recent report, with many expecting to face difficulties in coping financially due to strained household finances. The report suggests that millions of homeowners could find it increasingly difficult to cope financially due to a number of factors. (more…)
Despite the two most recent Bank of England interest rate cuts the interest charged on personal loans in the UK is continuing to rise, leaving many potential borrowers facing huge costs relating to their borrowing, The rates on personal loans have been rising for some time, and as a result of the credit crunch many people now find it difficult to get affordable unsecured personal loans, with banks having to increase their rates to make up for the losses incurred as a result of higher inter-bank lending costs. (more…)
Most first time buyers in the UK have very little to put down by way of deposit on a mortgage, and this is because they have no previous property from which to use equity towards a deposit. In the past this has not proven too much of a problem, as many first time buyers have been able to access 100% mortgages – or even 125% mortgages – which has meant that they could get away with little or no deposit. (more…)
According to recent figures from the Bank of England, many first time buyers are now facing crippling mortgage rates, with many being hit by the highest mortgage rates in over seven years. Data from the central bank suggests that in some cases first time buyers are being hit with interest rates on mortgages that are at the highest since 2000. (more…)
Following the latest Monetary Policy Committee meeting last week the Bank of England has decided to keep interest rates on hold amidst concerns over rising inflation. Although there have been calls for the central bank to cut rates as a result of the flagging economy officials have also had to take into consideration the risks of rising inflation as well as a slowing economy. (more…)
Homeowners that have entered into an IVA, or Individual Voluntary Arrangement, could face soaring interest charges on their mortgage as the result of a clause in the agreement that requires them to use the equity in their home to put towards their debts. An IVA is known as a softer alternative to bankruptcy, and those entering into this sort of agreement pay a set amount per month for a period of five years after which the remainder of the debt is written off. (more…)