Base rate may have been in line for bigger cut
The minutes of the latest Monetary Policy Committee meeting have suggested that the latest base rate cut of 1.5 percent could actually have been even bigger, as there was room for the MPC and the Bank of England to consider a rate cut of more than 2 percent based on inflation projections. The Bank of England announced earlier this month that the base rate was being cut by a massive 1.5 percent, which was the biggest cut since 1981 and took the base rate down to just 3 percent. Read more
Tags: excess, bank of england, MPC members, bank of america, larger cut, base rates, point, Inflation report
CML: Mortgage lenders to feel the squeeze
November 22, 2007 by admin
Filed under News, News-Mortgages
Mortgage lenders will feel the pressure of the credit crisis on the market, the Council of Mortgage Lenders (CML) has said.
The CML warned that this “testing time” is yet to come despite gross mortgage lending being up in October, standing at £32.4 billion.
Furthermore, the Building Societies Association (BSA) has revealed that £4.65 billion was lent for mortgages last month, down significantly on last year’s figures for October.
The BSA also reported the highest ever savings levels last month.
CML director general, Michael Coogan, commented: “The next few months will be a testing time as ongoing pressures in financial markets feed through into the wider economy.
“Funding constraints will continue to restrict lending activity and make loans more expensive.”
The Inflation report recently published by the Bank of England added to speculation that rates may fall, which Mr Coogan explained “should provide some relief for borrowers sooner rather than later”.
