No change in UK interest rates
August 4, 2011 by Reno
Filed under News, News-Banking
Following the August Monetary Policy Committee Meeting the Bank of England has announced that the base interest rate is once again to remain on hold at its lowest level in the history of the Bank of England. The base rate has been at its all time low of just 0.5 percent for well over two years now, which has provided relief for many homeowners and borrowers who have seen their monthly repayments plummet.
Economists have now predicted that the base rate will remain at this record low for the remainder of this year, with some even going as far as to say that it could remain at 0.5 percent next year as well. In a poll that included 32 economists the majority believed that it would be next year before the base rate was increased and a handful said that it could be 2013 before rates increased.
The news that the base rate is to remain on hold comes as no surprise to most industry experts, as the MPC is reacting to the fragile economy by keeping the base rate low. There will be many people that welcome the decision to keep rates low, such as those with mortgages on variable rates. However, there are also some groups that want to see rates increased in order to try and bring inflation levels down.
One group said that rather than increasing the base rate the MPC could look at further increasing the quantitative easing scheme, as this would increase the amount of money available to companies.
Tags: bank of england, time, history, interest, rates, scheme, inflation, chief economistDavid Kern, chief economist at the British Chambers of Commerce, said: “Every effort must be made to sustain the recovery. If the economy weakens further, the MPC should not hesitate to increase the QE programme.”
Mortgage lending hits record level, says CML
August 20, 2007 by admin
Filed under News, News-Mortgages
Mortgage lending has hit a new high, according to latest statistics from the Council of Mortgage Lenders (CML).
Gross lending hit an all-time July record of £34.4 billion, according to figures released by the industry body today.
Although the amount is slightly down on June’s results, this nevertheless represents a 13 per cent rise on the equivalent figures for 2006.
A CML spokesperson said that the record figures did not mean that the trend was set to increase: “As we move into the autumn the cumulative effects of [interest] rate rises will become more pronounced, and we expect this to feed through to lower levels of mortgage lending as the year progresses.”
Interest rates were raised by the Bank of England in July to 5.75 per cent, the fifth such increase in a year.
Commenting on the CML’s figures, chief economist at the Royal Institute of Chartered Surveyors (Rics), Simon Rubinsohn, also counselled caution, saying that “the turmoil in financial markets will push up mortgage costs for in vogue longer term fixed rate deals and will further slow the residential property market.
“With 90 per cent of borrowers opting for fixed rate security, those who are already financially stretched will find themselves paying a higher price for the added peace of mind,” he added.
House prices rise by 9.9%
January 5, 2007 by admin
Filed under News, News-Mortgages
House prices in the UK rose by 9.9 per cent throughout 2006, according to the Halifax bank.
A report carried out by the bank shows that price inflation on properties in the country increased during the last 12 months.
Despite the overall rise, Halifax said that prices fell by one per cent in December, with some industry figures hopeful of a slowing down in the market.
“It remains too early to conclude that this indicates a genuine slowdown in the housing market,” said Halifax’s chief economist Martin Ellis.
“Overall, prices in the final quarter of 2006 were 4.2 per cent higher than in the previous quarter, marking the strongest quarterly rise since 2004 quarter two.”
Northern Ireland saw the biggest increases during 2006, with the average house price rising by 53 per cent.
Halifax’s report is based on figures from its own lending to customers but falls in line with other major lenders’ results.
Nationwide recently published a report into 2006 house prices and put the rate of inflation at 10.5 per cent.
Although Halifax says factors such as economic growth, rising employment and lack of supply will drive up house prices, the bank expects to see a slowdown in the coming year.
“Higher interest rates, greater pressure on household finances and subdued real earnings growth will… constrain housing demand,” said Mr Ellis. “We expect house prices to increase by four per cent in 2007.”
