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…)
Posts Tagged ‘interest rates’
Base rate stays the same for June
Monday, June 16th, 2008
Bank decides to leave base rate static
Friday, May 23rd, 2008In 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…)
Many lenders ignore base rate cuts
Friday, May 23rd, 2008An 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…)
Darling wants banks to help vulnerable families
Monday, May 12th, 2008Chancellor 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…)
Bank of England cuts base rate
Saturday, April 19th, 2008The 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…)
Financial difficulties loom for homeowners
Friday, April 11th, 2008Homeowners, 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…)
Interest rates on personal loans continue to rise
Saturday, March 29th, 2008Despite 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…)
Crippling mortgage rates for first time buyers with no deposit
Thursday, March 27th, 2008Most 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…)
Many first time buyers facing soaring mortgage rates
Thursday, March 20th, 2008According 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…)
No change in interest rates for March
Monday, March 17th, 2008Following 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…)
IVA homeowners face soaring interest rates
Saturday, March 1st, 2008Homeowners 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…)