Mixed feelings over store cards

When it comes to store cards there is a great deal of bad press, and these cards have earned a very bad reputation over the years, mainly because of the high rates of interest that they charge. Some store cards charge up to 30 percent APR, and this results in many people who make only the minimum repayment on their debt paying a fortune in interest and spending lengthy periods of time trying to clear their debt.

Many people are swayed into taking out a store card because retailers offer them incentives such as on the spot discounts for applying for and being accepted for a store card when they are shopping. This can tempt many people into taking out a card and getting into debt especially when the cards are promoted at times such as Christmas when people are looking for ways to fund their purchases.

However, some industry officials have said that although these cards do receive bad press and are slated for a number of reasons they can actually prove very useful for consumers. They can provide a convenient means of shopping, and like credit cards balanced can be paid off within interest free periods so that no interest is charged on the debt.

One consumer campaign group official said: ‘With APRs of around 30%, store cards are never good value for borrowing. Our investigation into the market found it was too easy to get hold of credit and that too many retailers were offering cards either without telling the customer that they’d be credit checked, or, worse still, without credit checking them at all. That’s not to mention the lack of privacy in reading out your personal details in a busy high street store.’

However, the Finance Leasing Association said: ‘There is no evidence of consumers being unable to manage their spending on cards. Customers are already able to change their mind about taking out a credit card. New EU regulation bought in February this year provides customers with an opportunity to change their mind within 14 days of taking out the card.’

Tags: free periods, high street store, business, New, percent, consumer campaign group official

New energy statements failing to make impact

A recent survey that was carried out has suggested that new energy statements that were launched to make the energy market more competitive and improve understanding of payments for consumers are failing to have the desired impact. The survey was carried out by the price comparison service uswitch.com and involved questioning consumers about the new annual energy statements that have been brought in.

However, despite the aims of the annual statements is appears that consumers had either not received the new statements or may have received them but did not realise that they had received them. The statements are supposed to have been delivered to all homes in the UK and are meant to explain the various discounts that are available on different tariffs so that consumers can get the best deal possible on their energy.

Any household that hasn’t yet received one of these statements is due to receive one soon, but many may not even realise that they have received their statement. One industry group has described the statements as a ‘huge undertaking’. Suppliers were told to start sending out the first of these statements by the end of last year by the energy regulator Ofgem. The aim of the statements is to make consumers more aware of their energy use and why they may be paying as much as they are, with the hope of encouraging more competition in the market.

Ann Robinson, director of consumer policy at Uswitch, said: “Annual statements are a linchpin of Ofgem’s push to get the competitive energy market working properly, but consumers clearly do not think they are coming up to scratch. The vast majority of households will have received an annual statement by now, but only 37% recognise that they have done so. The statements appear to be poorly labelled, difficult to understand and do not stand out from ordinary energy bills.”

Tags: energy market, consumer policy, price comparison service, industry group, energy regulator ofgem, end

Gas bills could soar higher

The icy cold weather and snow has already struck in the UK, leaving many households having to turn up the heat in order to get warm. However, the cold snap has also caused gas prices in the country to rocket to their highest levels in eighteen months, causing concern amongst many households with regards to how they will cope with their increased bills.

With many still struggling in the continued difficult financial climate the prospect of even higher bills is one that will create concern and stress. The freezing temperatures has meant that households have had no option but to increase their heating, and on 5^th December demand for gas was 25 percent higher than it was on the same day last year, and the third highest daily amount on record.

The temperatures have hit unprecedented lows for this time of the year in many parts of the country, and this has seen demand for gas amongst households and businesses rocket.          The National Grid reported a huge increase in demand for power, and the surge in demand created concern in wholesale markets, sending the price of gas surging to its highest level in eighteen months at sixty two pence per therm, which reflected an increase of eleven pence.

With more and more people staying in the home to avoid the cold, turning up the heating, and trying to keep warm, energy bills are likely to rocket, and officials have warned that households need to brace themselves for a sharp increase in costs.

An official from Consumer Focus said: “We’ve been expecting it any day. If this cold weather continues causing high demand, the question is how much more will they need to go out and buy on the spot market. Our fear in these situations is that gas companies are able to talk up price rises on the back of unusual weather. We really wouldn’t want to see further rises because of this cold snap.”

Tags: energy bills, market, freezing, rocket, Snow, wholesale markets, eleven pence

Mortgage drought could affect many people

Industry experts have said that under current plans that have been proposed by the UK’s financial regulator, the Financial Services Authority, many people could be facing a mortgage drought that could leave them unable to get the mortgage finance that they need in order to get onto the property ladder.

The mortgage market is already very restricted, as it has been since the onset of the global financial crisis several years ago which almost brought the banking and financial systems to their knees. However, experts from the Council of Mortgage Lenders have said that things could get even worse under new rules from the FSA.

The Council of Mortgage Lenders has said that if these regulations had been in place over the past four years over 50 percent of mortgages that were granted over this period would have been refused, causing huge problems for those that were looking to buy a property and get onto the property ladder.

The CML claims that this would have equated to around four millions additional mortgage loan rejections if the FSA had its regulations in place in 2005. The group said that this shows just what a negative impact the rules could have in the current financial climate. A review by the CML suggests that under the new proposed regime millions more people a year could be turned down for a mortgage loan.

Figures show that the number of mortgage approvals in the UK have already plunged, with numbers having fallen to around 50,000 per month compared to 135,000 a months before the credit crisis hit. This has been made worse due to the strict restrictions that banks have put in place when it comes to lending, as well as the higher deposit levels being demanded.

Tags: property ladder, mortgage, Financial Services Authority, UK's financial regulator, council of mortgage lenders, market, financial, Mortgage loan

Mortgage market could suffer over next quarter

Over the past couple of years things in the mortgage market have been tough, and availability of mortgages has become very restrained as a result of the global credit crisis and the recession. This has left many people unable to get their hands on a mortgage loan, and has had a serious impact on the property market.

The Bank of England has now issued a warning stating that there could be fresh restrictions in the mortgage market over the next few months, blaming the tightening of wholesale funding for the expected squeeze on mortgages. This will create additional difficulties for those that are looking to get a mortgage, and will reverse the recent trend of increased availability of mortgages.

The data comes from the Bank of England’s Credit Conditions Survey, and a number of economists have also agreed that the availability and affordability of mortgages could fall over the next few months as banks struggle with tightened wholesale funding.

Over the past quarter the availability of mortgages has actually increase after a couple of years of serious difficulties, but this is something that is set to go into reverse according to the Bank of England. Figures have also shown that over the past quarter demand for mortgages has fallen even though mortgage availability has been increasing.

Dougald Middleton, head of capital and debt advisory at Ernst and Young, said: “While the survey shows that costs of borrowing have eased over the last quarter, we think credit conditions have turned over the last three or four weeks.”

The good news from the Bank of England report was that the rate at which mortgage borrowers and businesses were defaulting on loan took an unexpected fall, which will come as good news for banks.

Tags: availability, Impact, bank of england, mortgage, market, Mortgage loan, finance, demand

Households struggling with winter fuel bills

According to recent reports there are now many households that are struggling with winter fuel bills as a result of very cold weather coupled with lack of price cuts from energy suppliers. The high energy bills that some households are having to try and cope with will add further strain to the already difficult financial situations of many people.

The average amount that households are expected to pay for the fuel that they used over the winter period is £532.70, and this takes it above the previous record of £475, reflecting an increase of over £50. Many have been keeping the heating on for longer during the cold weather and this has driven up the cost of their energy bills.

Whilst the spring is officially here and summer is only around the corner there are still warnings of cold weather being released, and this means that consumers are likely to continue using their heating at a time of year when they might usually have stopped using it. Many are also putting the temperature up when using their heating, which can also make a big difference on bills.

The figures relating to winder fuel bills were put together by Energyhelpline.com, which has accused the government of failing to stand up for consumers. Whilst wholesale prices on energy have fallen dramatically by around 60 percent there are concerns that household energy usage costs have only dropped by around 15 percent coming nowhere near reflecting the saving that the energy firms are making.

Officials are also concerned that some people may be receiving inaccurate bills and paying more than they need to because they do not take the time to check the bills. Consumers are also being advised to try and switch providers to get a better deal.

Energyhelpline.com stated: ‘In a privatised energy market, there is little governments can do and they need to be honest and tell people that the only way to reduce their bills is by taking personal responsibility to find the best deals.’ 

Tags: market, responsibility, Heating, energy bills, previous record, wholesale prices, energy suppliers

Property prices to be higher at end of this year than the last

It has been predicted that at the end of this year house prices will be higher than they were at the end of last year, with many industry experts expecting a slight rebound in both the property market and the economy. Read more

Tags: housing market, bank, Chartered Surveyors, concern, industry experts, market, case, property prices

Over a decade to full recovery for housing market

It has been claimed that a full recovery for the property market in the UK could still be quite some way away, with some industry official claiming that it could be more than another decade before the property market makes a proper recovery. Read more

Tags: memories, housing market, market, property prices, bust, PricewaterhouseCoopers, firm, supply

Which Age Group Has Been Most Affected by the Recession?

Although everyone has been affected by the recession in some way, recent research points to the fact that those between the ages of 45 and 60 have been hardest hit.

Read more

Tags: market, PricewaterhouseCoopers, age groups, younger ages, age group, mercy

Home loans are not going to become more readily available yet

Industry experts have recently confirmed what most people have already worked out for themselves – that the availability of home loans in the UK is not likely to increase anytime soon. Read more

Tags: mortgage deals, market, Mortgages, personal finance, mortgage, official, availability, council of mortgage lenders

Will homeowners see any benefit from the rate cuts?

After a series of interest rate hikes between August 2006 and July 2007, which left many homeowners struggling to keep up with mortgage repayments because of the higher interest rates from banks, many were relieved to see interest rates plummet over recent months. In October of this year the Bank of England reduced the base rate from 5 percent top 4.5 percent, and a month later the central bank wiped another 1.5 percent off the base rate, taking it to just 3 percent. In December yet another 1 percent came off, which took the base rate to a fifty seven year low of just 2 percent. Read more

Tags: property market, great news, mortgage rates, chancellor of the exchequer, rates, market, Savings and loan association, base rate

Increase in people not happy with energy firms

A recent report has indicated that an increasing number of people are no longer happy with their energy firms, with this year’s price hikes playing a large part in how satisfied consumers are with their energy suppliers. The study was recently carried out by price comparison website uswitch.com, and found that whilst around 33% of consumers were dissatisfied with their energy supplier this time last year, this figure had now risen to around 41% of consumers. Read more

Tags: following, recent report, market, energy firms, spokesperson, month, energy, useful indicator

Frightened banks pull mortgage deals

Recent figures have shown that since the start of October hundreds of mortgage deals have been pulled off the shelves by lenders who are becoming increasingly nervous in the current difficult financial market. Over the past year thousands of mortgage products have been taken off the shelves as lenders have become more and more concerned about lending money out. Read more

Tags: consumers, bradford & bingley, Mortgages, banks, Frightened, market, mortgage deals, shop around

Cost of the family holiday is on the rise

Most families look forward to their annual break when they can get away from the stresses of everyday life and enjoy some quality time together in a relaxing and enjoyable atmosphere. However, many families have found it far more difficult to get away on this much awaited break over the last couple of years, partly due to rising interest rates on mortgages two years ago, when interest rates soared to 5.75%, and more recently due to increased living costs and bills, which continue to put a real strain on household finances, leaving very little money to spend on luxuries. Read more

Tags: report suggests that, recent reports, weakness, market, awaited break, holiday costs, fortune, Labour

Property situation ‘bad as ever’ for first-time buyers

Despite recent reports that house prices are stagnating and even falling in some areas, Firstrung has said that the property situation is “as bad as it’s ever” for people trying to buy their first home. Read more

Tags: year, Firstrung, home, market, house, Mortgages, first time buyers

Nationwide cuts fixed-rate mortgages

Nationwide, the UK’s third largest mortgage lender, has announced it is cutting interest rates on some of its fixed-rate mortgages by 0.3 per cent. Read more

Tags: building societies, global credit crunch, market, credit, fixed rate mortgages, interest, trend

More people see benefits of private medical insurance

People are increasingly recognising the benefits of private medical insurance (PMI) and more employers are starting to take out policies for their staff, says the Association of British Insurers (ABI).

According to ABI’s figures, more than six million people are now covered by either personal or corporate PMI with a further 1.14 million covered through Healthcare Trust arrangements.

Research conducted by BUPA shows that in the first quarter of 2008 sales of individual PMI policies were up by 20 per cent on the same period last year.

Private health care allows patients a quicker and higher standard of service than the NHS, according to ABI spokesperson Jonathan French.

Employers are also increasingly seeing the advantages of providing PMI for their workers, such as helping them to back to work more quickly after an illness.

“There’s also the argument [that ] in an increasingly competitive labour market, employers are using add-ons, like offering private medical insurance to ensure that they can recruit and retain the best quality staff,” added Mr French.

Tags: Financial economics, standard, offering, competitive labour market, private health care, Labour economics, Business Finance, market

Building society lending down

The number of loans being handed out by building societies has fallen, according to the Building Societies Association (BSA).

Adrian Coles, director-general of the BSA, said: “Lending at building societies was down year on year. This is partly due to building societies withdrawing products and increasing rates on new lending so that they do not become overly competitive.”

He added that some building societies have found themselves “inundated with applications” and were forced to limit their lending to preserve “high levels of service” as other lenders withdrew from the market.

Mr Coles also believes that the situation may be a product of the “greater level of uncertainty in the housing market” causing prospective buyers to wait.

The announcement comes as the Council of Mortgage Lenders (CML) praised HSBC’s recent offer to match the interest rate of any borrower coming to the end of a fixed rate deal as “a good example of market innovation”.

A spokesperson for the CML said that the offer highlighted that “there is still competition in the market despite obvious pressures”.

Tags: borrower, council of mortgage lenders, new lending, building societies association, market innovation, Mortgage loan

BSA: Customers still have “a very wide choice” in mortgage market

Although the range of mortgages available has shrunk in the past year, it continues to be a competitive market where customers still have “a very wide choice,” the Building Societies Association (BSA) has said.

Neil Johnson, PR and policy manager at BSA, said that building societies in particular are offering competitively priced products, which is why they are featuring prominently on the best-buy tables.

A recent survey by Moneyfacts.co.uk revealed that the number of mortgage deals available has dropped by 60 per cent compared to last year.

This may leave many borrowers in financial difficulty about since 1.4 million people are due to come off cheap fixed-rate mortgage deals this year, says the Financial Services Authority.

By the end of 2008 more than 100,000 home owners are expected to be in negative equity, according to the Market Oracle.

Earlier this month HSBC announced that it would match the interest rate of previous deals for two years for borrowers whose fixed-rates were nearing their expiration date.

Commenting on HSBC’s move, Mr Johnson said: “It’s what you would expect in the competitive mortgage market that we’ve got, where providers actually offer different products that will appeal to different customers.”

Tags: manager, market, tables.A recent survey, interest rate, mortgage deals, month, expiration date, rate

Link between base rate and mortgage rates “severed”

An expert has suggested that mortgage rates are no longer influenced by the Bank of England’s base rate of interest.

Melanie Bien, director of Savills Private Finance, said that despite the Bank’s monetary policy committee choosing to maintain the base rate at 5.25 per cent, Abbey has announced its mortgage rates will be rising from next week.

“It proves that the connection between base rate and mortgage rates has been all but severed as lenders look to improve margins rather than market share,” she claimed.

Consequently, even if the base rate comes down further this year, this may not feed through to mortgage products, the expert suggested.

In order to make the most of the best deals currently available, need to “act quickly” before lenders remove them from the market.

Paul Holmes, chief executive officer of Firstrung, said that people are unlikely to be able to take out 100 per cent-plus mortgages any more.

However, despite some people criticising such products, Mr Holmes said that they were “very good” in some circumstances.

Tags: Firstrung, week, england, order, Link

Housing market ‘in worst slump since 1992′

The housing market in the UK has fallen to its worst economic slump since 1992 when it last came out of a financial recession, according to the Royal Institute of Chartered Surveyors (RICS).

With the balance dropping for the sixth month in succession, 54.7 per cent more chartered surveyors reported a fall rather than a rise in house prices, the highest number for 15 years.

Jeremy Leaf, a spokesman for the RICS, said: “A lack of demand and confidence in the housing market is clearly behind the recent price slowdown.”

He added that tightening mortgage lending criteria is a block to many who are keen to take the “housing market plunge” while sellers are struggling to market properties to consumers content to “watch the current economic theatre from the wings”.

According to surveyors, the only part of the UK where prices continue to rise is Scotland with the net balance of surveyors in that country reporting price rises edging up from three per cent to seven per cent.

Meanwhile, a man who did not make any mortgage repayments for 15 years has had his debt erased by judge in an appeal court.

Tags: Surveying, demand, RICS, property, consumers, market, Mortgage loan, Real estate

Student debt “unlikely” to affect first time buyers

Having a student debt is “unlikely” to restrict students’ abilities to make their first steps onto the UK property market, one expert claims.

Financial solutions specialist Firstrung said that despite recent reports that student loans will be incorporated into people’s credit files, this is not likely to result in loans being turned down.

Paul Holmes, chief executive officer with company, said: “It’s unlikely to hamper students’ ability to buy, and secondly, I think quite frankly a lender would dismiss that kind of commitment in a month.”

He added that despite the figures the “media often likes to paint and shock and bore us with”, the reality of student debt is quite low when they come out of university.

However, although students’ ability to buy property is unlikely to be hampered, Firstrung expect finances to be “raked over a lot more intensely” due to the current economic climate.

Last week, mortgage company mform.co.uk warned that that more first-time buyers will be turned down for loans as student loans will be incorporated into people’s credit files.

Tags: week, mortgage, debt consolidation, Firstrung expect finances, lot

Speculative property investors hit by oversupply

The oversupply of flats will have the biggest impact upon those “who have just gone in for the speculative investment” says an industry expert.

Landlordzone.co.uk has said that while established landlords who invest in property as a business could profit from falls in house prices, “the people who have gone into this more recently” will be the ones “who suffer”.

Tom Entwistle, editor of www.landlordzone.co.uk said: “The problem now is that because people [landlords] are desperate, they will lower their expectations of tenants, and will go for a lower quality of tenant.”

“That has a snowball effect because it means people will struggle to let and that could destroy the quality of the whole development,” he added.

Consumers invested in property thinking prices were going to continue rising but this has not happened, concluded Mr Entwistle.

His comments arrive after the Royal Institution of Chartered Surveyors reported that the demand for flats has fallen due to “an oversupply in the market”.

Tags: www.landlordzone.co.uk, expert, rent, property investors, landlordzone, Royal Institution of Chartered Surveyors, market, royal

Secured loans market rocketing

The personal secured loan market in the UK is predicted to grow to in excess of £10 billion by 2011, it has emerged.

Information collected by Datamonitor revealed that the growth in this type of loan from £7.5 billion in 2006 is prompted largely by increased demand to consolidate debt.

This growth is remarkable particularly because some lenders have pulled out of the market following the sub-prime crisis that hit the US this year, making lending increasingly tight.

Maya Imberg, analyst with Datamonitor’s Financial Services practice, commented: “The US sub-prime mortgage crisis and global credit crunch will affect the market in the short term.

“However the UK secured personal loans market continues to portray an encouraging future in the long term.”

Among providers pulling out of the secured loan market are Kensington Personal Loans, the London Mortgage Company, Southern Pacific Personal and GMAC-RFC.

Meanwhile, those looking to take out a secured loan will find prices going up with tighter borrowing criteria, making it increasingly difficult to do so.

Tags: US, debt, market, Datamonitor's Financial Services, secured loan market, london

Bank holds interest rates

The Bank of England has held interest rates at 5.75 per cent for the fourth month in a row.

The decision, announced at noon on Thursday, comes as no surprise with many analysts predicting such a freeze well in advance.

Ongoing uncertainty in world financial markets and the rising price of oil led members of the Bank’s Monetary Policy Committee (MPC) to keep rates at their current peak.

That will mean prolonged misery for many homeowners, struggling to cope with high mortgage payments.

Chief executive of the National Association of Estate Agents (NAEA), Peter Bolton King, was critical.

He said: “I would have hoped that the Bank of England would have considered this month’s rate movement carefully as confidence in the market needs to be restored and a relaxation of interest rates would do just this.

“The last 12 months has been an extremely busy period for the housing market and consumers are crying out for reassurance.”

Tags: market, confidence, consumers, Monetary policy, executive, economics

Mortgage and housing fundamentals ‘broadly positive’

With such variety in predictions about which direction the markets will take, IMLA have said that there is a “broadly positive” outlook for house prices and the mortgage market.

It explains that this trend is unclear due to the disparity between demand for houses and the supply available, as well as the “inadequate” amount of new builds happening over the past years.

Executive director of IMLA, Peter Williams, commented: “Without doubt, there are some clouds on the near horizon but IMLA’s view is that, if the market correction gathers pace in the way some pundits suggest, then we should expect firm action by the Bank of England to support the financial markets, provide liquidity and, if necessary, cut rates to protect confidence and help the markets recover over the medium term.”

He added that, inflation in house prices varies from place to place across the country, saying that, realistically, it will only be those who have bought a property at the market peak who will be effected by the market slowdown.

Tags: pundits, market, market peak, cut rates, amount, property, mortgage

Isas to be ‘increasingly’ popular

The growing popularity of individual savings accounts (Isas) in the past few years is a continuing trend, an industry expert has said.

According to Michael Brill, director of Baronworth Investment Services, people are increasingly putting their equity into Isas as traditional banking methods become more risky and less attractive.

He said: “If you go into a cash Isa then it is very safe. In a deposit account, one would have thought it is the safest you can get.

“If someone wants to make sure their money is saved and they are not playing with the stock market it is an excellent way to save tax free money and a lot of people are doing it.”

He added that, in the most part, cash Isas are “very flexible”, with consumers advised to select one that best suits them.

HM Revenue and Customs released figures this month showing the amount of money invested in Isas, which now stands at an impressive £208 billion.

Tags: ISA, industry, Business Finance, way, market, michael brill, stock

Younger couples could be better off renting than buying property

Industry experts have stated that younger couples on average incomes could be far better off financially renting a property in England and Wales rather than purchasing.

Although there is no investment element in renting a property it is estimated that the cost of renting an average two or three bed house in England and Wales is around two thirds the cost of a 100% mortgage, making it the more affordable option for those on average incomes.

In the past the cost of renting a home was more or less the same as taking out a mortgage to buy one, and therefore purchasing was the more sensible option. However, due to the rising value of property in England and Wales, which has rocketed over recent years, coupled with rising interest rates, which have been hiked up five times since August 2006, mortgage costs are sky high at present, and many couples and families are now turning to rental properties.

One industry professional involved in the research stated: “Not too long ago, there was little difference between the costs of buying and renting. But while house prices tripled in the years since 1994, private sector rents only increased in line with earnings, and the costs of renting have as a result fallen relative to the costs of buying.”

Research shows that the amount of money that first time buyers now need o be earning in order to get a mortgage is higher than ever, making it increasingly difficult for younger couples and families to get onto the property ladder even with the availability of increased income multiples now offered by many mortgage lenders.

Tom Smith
5th November 2007

Tags: mortgage, cost, lenders, own, home, buy

Signs of housing market cool down

Predictions from many economists and analysts that the housing market in the UK is cooling down have been proven following figures relating to house prices for September.

According to figures house prices in September fell for the first time since December, and to many this reflects the start of the cooling down period for the UK housing market. The figures come from the HBOS house price survey. According to the figures there was a 0.6% drop in house prices, which was a far cry from the predicted 0.4% increase.

The average house prices has now fallen to just below the £200,000 mark, taking the annual three month rate of house price inflation to 10.7% compared to the expected 11.1% rise that had been forecast. Halifax officials state that although the economy remains strong it is likely that house price inflation will fall further in the coming months, as the housing market in the UK continues to cool.

Martin Ellis from the Halifax stated: “September’s price fall is consistent with the normal behaviour of the market during a slowdown. A mixed pattern of monthly price rises and falls is a typical feature of a more subdued housing market.”

This could mean good news for first time buyers that are looking to get onto the property ladder, but could result in problems for those that have recently taken out large mortgage, many of whom could find themselves falling into negative equity.

The likelihood of an impact on consumer spending has also increased as a result of the slowdown in the housing market.

One economist stated: “Since house prices gains have stalled, we believe it is highly likely that spending growth will also hit the wall in the months ahead.”

Tom Smith
4th November 2007

Tags: fall, equity, property, housing, market, mortgage, prices

Effects of credit squeeze ‘hard to predict’

How long the impact of the global credit squeeze on the mortgage markets will last is not easy to forecast.

According to the Council of Mortgage Lenders (CML), it is not yet clear how long the credit problems will continue to affect the number of mortgage products on the market.

Bernard Clarke, a spokesperson for the CML that there is uncertainty over when the credit market will return to “normality” and if that “normality” will be the same as before credit crunch.

“There are implications within that for lenders operating in wholesale funding markets. The problems persist for now, and in the longer term we expect the wholesale funding market to improve and become more liquid, but perhaps it will not be as liquid as it was before,” he said.

Commenting on whether the credit squeeze will affect the types of products on the market, Mr Clarke added that time will tell how the government will set out to promote people taking on fixed-rate, long-term mortgages.

Tags: market, Subprime mortgage crisis, market.bernard clarke, credit crunch, cml, Super jumbo mortgage

Icesave launches new fixed rate accounts for savers

Icesave, which is currently celebrating its first birthday, has announced the launch of a number of fixed rate savings accounts for customers wishing to save between £1000 and £2 million.

These accounts allow customers to choose from one, two, or three year terms, also enabling them to choose between having their interest paid on a monthly basis or an annual basis. By choosing one of these accounts savers can lock in the interest at a fixed rate for the set term, which means that the interest rate on the savings account will not fall even if the base rate set by the Bank of England does.

Experts state that the two and three year fixed rate deals from Icesave are impressive. The three year account enables savers to enjoy interest rates of 6.31% if paid monthly and 6.5% if paid annually. With the two year account savers can enjoy 6.41% if paid monthly and 6.6% if paid annually. The one year account enables savers to enjoy 6.5% if paid monthly and 6.7% if paid annually. However, a number of industry professionals have stated that there are better one year accounts out there, and savers should shop around.

One industry professional stated: ‘The fixed-rate market is not like the variable market where you have a whole load of other factors and restrictions to consider, so the rate itself is key. On that basis, the Icesave two- and three-year accounts are the best at the moment, but you should probably look elsewhere for a one-year rate.’

Another industry official said: ‘In the fixed-rate market, if you are not being offered the best rate then it is so-so. However rates in this market are not good at the moment: they are so close to variable rates, you have to question whether it is worth locking in your money for the given period. The one-year market is very competitive at the moment. Nottingham’s 6.83% offers a good margin over variable rates, so if you are looking for a one-year bond at the moment, that’s the one you should go with.’

Tom Smith
26th October 2007

Tags: bank, Banking, accounts, earn, savers, savings, fixed

New credit card for intrepid gappers

A new credit card has been launched aimed at students taking gap years.

The prepaid Mastercard will be for general use anywhere around the world, whether in shops, online or by telephone.

Its appeal for travelling students will be that it offers them a ten per cent discount on purchases with a huge selection of partner companies worldwide.

The card is to be produced as a combined enterprise between gapyear.com, Mastercard and Advanced Payment Solutions.

Founder of gapyear.com, Tom Griffiths, said: “We’re experts in gap years and marketing to our target audience. It really is a ‘best of breed’ partnership approach with two award winning market leaders coming together to offer a new product.”

Benefits for the travel website come in the form of market research, as information on the customers’ spending habits will be passed on to it in order to build up a picture of tends and opportunities for marketing.

Recent research by NatWest bank found that over half of students taking a gap year plan to spend it earning money for university.

Tags: selection, market research, partnership approach, new credit card, market

Fool.co.uk: House price standstill could ‘imprison’ first-time buyers

Many first-time buyers may fail to sell their home at a price high enough to cover their mortgages if house prices begin to fall.

Fool.co.uk states that people who have recently bought homes on 100 per cent mortgages could suffer from the evening out of house prices and that they have cause to be “concerned”.

Although 100 per cent mortgages are not a significant part of the market, the Council of Mortgage Lenders estimates that they are taken out by one in every 20 first-time buyers.

The website warned that these homeowners would suffer from even a small downturn in prices, leading them into negative equity.

However, David Kuo, head of finances at Fool.co.uk, advised: “They can tip the scale in their favour by ensuring that they choose repayment mortgages rather than the cheaper interest-only options. They should also overpay their mortgage as often as they can afford.”

Mr Kuo added that doing this would help them to chip away at their debt and give them more equity in their homes allowing them an improved choice of mortgage provider.

In the UK, house prices have seen a slowdown in recent weeks with borrowing costs still high and the Bank of England’s decision to hold interest rates at 5.75 per cent meaning the pressure on people repaying mortgages remains high

Tags: chip, borrowing, market, negative equity, Mortgage loan

Mortgage slow-down expected as prices rise

A slow down in the market is forecast as a result of rising mortgage prices, according to Andy Hornby, head of HBOS mortgage lender.

He warned that property owners were at risk from the fluctuations to the mortgage market and predicted that concerns regarding these changes could end in homeowners having to spend more on mortgage repayments.

Speaking to a Merrill Lynch banking conference in London yesterday, he said: “I suspect that the mortgage market is about to undergo a fundamental shift. Over the past three years we’ve seen a major decline in mortgage margins.”

He added that mortgage cost adjustment would continue on the back of “wholesale funding costs”.

Lenders’ rate increases have been widespread in the UK following the sub-prime mortgage crisis, causing anxiety for those considering taking out a loan on a house, many of whom decided not to, according to National Homebuyers.

HBOS is a retail, business, corporate banking, investment and insurance services company. It is the UK’s biggest mortgage and savings provider.

Tags: provider, United Kingdom, National, Mortgage loan, retail, HBOS mortgage lender.He

Buy-to-let mortgage market affected by credit crunch

The UK’s buy-to-let mortgage market is being adversely affected by the recent credit crunch, according to a financial website.

Research from Moneyfacts.co.uk indicates that it is becoming increasingly difficult for potential property investors to obtain a buy-to-let mortgage as more and more lenders are raising the cost of taking out such a loan.

It is also thought that some lenders have decreased the number of products they have available for potential borrowers.

“The trend over recent years has been a falling rental income cover requirement, so with lenders reversing this trend, it’s a definite sign that some are taking a more cautious outlook,” commented Moneyfacts mortgage expert Julia Harris.

Nonetheless, she did note that while the buy-to-let market is “taking a battering at the moment” if you are prepared to look “there are still some very competitive deals to be found”.

“Perhaps lenders are just taking a breather, giving them time to evaluate the market and perhaps re-launch with re-priced products, which will more than likely be at a higher rate.”

Tags: borrowers, outlook, market, rate, property investors, moment, launch, property

Has the housing market peaked?

According to recent figures the housing market in the UK may have peaked, as July’s figures show that the number of people looking to purchase their first home fell at the fastest rate in a period of three years.

Inquiries from first time buyers fell at the fastest pace since August 2004 according to the Royal Institute of Chartered Surveyors, with number of unsold properties rising to its highest in the past eight months, all of which points towards the housing market in the UK having peaked.

According to officials the reason for the slump in inquiries from first time buyers is due to the series of interest rate rises, and more importantly due to the added threat of further interest rate rises. The Bank of England has already hiked rates up five times by 0.25% each time since last August, and many predict a further interest rate rise of 0.25% in the coming months, which would take the base rate up to 6%. The interest rate is already at its highest in the past six years.

Officials state that many first time buyers are taking a ‘wait and see’ stance, and are continuing to rent for a while whilst they assess the market and see what happens with the interest rates in the coming months. However, although demand seems to have fallen according to these figures, house prices in the UK rose yet again for the 21st consecutive month.

An official from the Royal Institute of Chartered Surveyors stated: ‘The combination of softening demand and supply is causing market conditions to weaken further. Buyer activity has pulled back a little over fears that we may have seen the top of the market. With interest rates perched at 5.75% and a jump to 6% a strong possibility, aspiring first-time-buyers are continuing to rent until the market trend becomes clearer.’

Tom Smith
27th September 2007

Tags: home, housing, surveyors, market, cost, prices

Local financial firms more suitable than big banks

The standard of service and level of understanding offered by smaller building societies makes them more user-friendly than their larger counterparts, it has been suggested.

According to the Building Societies Association (BSA), the fact that regionalised companies will have a better knowledge of local markets is clearly to their advantage.

Commenting on the differences between the types, Adrian Coles, the director-general of the BSA said: “We’ve got a really good mixture in the building society sector, but if you’re locally based you really do understand the local market better than the branch manager of a national institution.”

He added: “What are the incentives? High levels of service, better levels of service than banks, understanding of local markets which they’re clearly good at, tailor-made products [and] knowing their customers.”

Recent BSA statistics reveal that 15 million adults have building society saving accounts with the 59 different institutions across the country.

Tags: Adrian Coles, Canoeing, director general, sector, business

Graduate mortgage lenders run risk, IFA says

Those lenders who allow recent graduates to take out mortgages with them do so at their own risk, Balmoral Associates said today.

The independent financial advisor said that the mortgages, which typically lend at five to six times salary under the assumption that wages will increase over the years, were not “very common”.

Director at Balmoral Associates Paul Monk also took care to distinguish them from 100 and 110 per cent mortgages, saying that the graduate loans were aimed at those who had read a “professional course like medicine or law” and whose “salary is going to increase dramatically over a short space of time”.

Given that a proportion of graduates will remain on similar wages after some years, however, Mr Monk added that “the lender’s taking a big risk” in offering the service.

“The lender’s banking on the fact that because of the sort of job you’re in that that is automatically going to happen but it’s not always the case,” he added.

Mr Monk also commented on the recent US sub-prime mortgage crisis, saying that the UK market might “tighten up” on lending, with recent graduates among the first to feel the squeeze.

Tags: United Kingdom, law, recent graduates, market, time, medicine

FTBs saving longer for their deposits

First-time buyers (FTBs) are saving for “around five years” to put down a deposit for their home, Your Mortgage said yesterday.

FTBs are also relying on loans from parents more and more, as house prices increase and interest rates rise.

Editor of Your Mortgage Paula John said that the average savings time had increased by a full 11 months in the past year alone.

“Of course, in the light of recent interest rate increases houses are even less affordable for first-time buyers so they are being kicked out of the market altogether”, she said.

Ms John also stated that house prices in London, which have increased by 15 per cent on average in the last year alone, have led FTBs to “lower their sights” and “buy a lot further out”.

According to HousePriceCrash.co.uk, in the last decade numbers of FTBs have shrunk from 55 to 29 per cent of the market.

The Office of National Statistics has also stated that the average price paid by FTBs in the UK has risen by 204 per cent over the same period.

Tags: uk, first time buyer, market, house, Real estate economics

50% of income going on mortgage

Some Londoners are spending as much as 50 per cent of their take-home income on their mortgages.

New figures from Woolwich highlight the precarious situation that many homeowners find themselves in and things could get worse with the Bank of England widely expected to announce a 0.25 per cent interest rate rise today (July 5th).

The average first-time buyer in the UK is said to be forking out 32.4 per cent of their take-home income on mortgage payments as property prices boom and people become evermore desperate to get onto the housing ladder.

The figures are a concern for many industry figures and Andy Gray, head of mortgages at the Woolwich, said further rate rises are likely to have a massive impact on the housing market.

“We fully expect the average age of first-time buyers to go up until people are well into their 30s,” he revealed.

“For those lucky enough to be on the ladder, the data suggests that in certain areas of London they are already stretched. The last thing any of them need is a further increase in base rates.”

First-time buyers, many of whom are understandably desperate to get onto the property ladder, are advised to carefully calculate their finances before taking out a mortgage to ensure that they are financially prepared for any future rate rises or changes to their circumstances.

Tags: housing market, increase, mortgage, rise, United Kingdom, andy gray, Real estate

Direct Line launches campaign against price comparison services

One of the UK’s best known car insurance companies, Direct Line Insurance, has launched a campaign against price comparison websites that help consumers to find that they claim is the cheapest insurance for their needs.

Price comparison websites require consumers to input a number of details, and then use these details to find the cheapest deal on car insurance cover. However, this is only from their database of insurers and not from every major insurance company in the UK.

According to research carried out by Direct Line over 40 percent of consumers that had used price comparison services to find cheaper vehicle insurance had thought that all major insurance companies would be included in the search.

The research also goes on to indicate that over 90 percent of those that have bought their vehicle insurance cover through a price comparison site feel that there should be some sort of warning so that consumers know right away that not all insurance companies are part of the database.

The Royal Bank of Scotland owns Direct Line, as well as Churchill and Privilege, and will not provide any quotes for customers through price comparison websites. An advertising campaign has now been launched by Direct Line to make consumers aware that price comparison sites do not represent all leading insurance companies in the UK.

One Direct Line spokesperson stated: ‘Consumers are confused about price comparison websites and our research shows many believe they provide an independent, public service designed to ensure consumers get the best deal on their insurance. Unfortunately this is not the case, as these websites are really just on-line middlemen who make money out of commissions on insurance sales, just like a traditional high street broker.’

Tom Smith
1st July 2007

Tags: Insurance, sites, quotes, consumers, search, prices, market, cheaper

Hips may be universal by October

The Association of Home Information Pack Providers (Ahipp) is calling on the government to extend the introduction of Home Information Packs (Hips).

Officials at the organisation say that Hips could be applied to homes with three bedrooms or more from September and the rest of the market could follow just one month later.

The government was forced to announce that Hips would only be introduced to the home-selling process for properties with four bedrooms or more from August 1st after concerns about there being too few accredited energy assessors available.

However, Ahipp says that there are plenty of accredited energy assessors available now and even more on their way.

“According to our own research, in addition to the 1,340 accredited assessors, there are a further 1,200 assessors who have applied for accreditation and will be fully accredited by the end of July,” said Paul Broadhead, deputy director general at Ahipp.

“With this in mind, government will easily meet the 2,000 target that it suggests is needed to provide Hips for homes with three bedrooms or more.

“As a result, I see no reason why, in line with its implementation plan, government could not introduce mandatory Hips for three bedroom properties from September, with the rest of the housing stock soon to follow, perhaps as soon as October,” he added.

Mr Broadhead went on to say that he fully expected Hips to be mandatory in the home-selling process for all properties before the end of the year.

Tags: information packs, August, energy, information, month later.The government, September, market, target

Govt still committed to Hips

The government remains committed to the introduction of Home Information Packs (Hips) in August.

Secretary of state for communities and local government Ruth Kelly has reassured homeowners that the government has no plans to back out at this late stage.

Hips will be mandatory in the sale of any house with four or more bedrooms from August 1st, with a view to a wider roll-out in the future.

Some concern had been raised that Hips would be completely scrapped following a humiliating government u-turn over whether they should be introduced to all home sales.

It was eventually announced that Hips would only apply to homes with four or more bedrooms but Ms Kelly has now offered some more details on how the packs will be phased into the entire property market.

She outlined how many energy assessors will be needed for the phased introduction and homeowners are being offered financial incentives to get a Hip before the August 1st deadline.

The reassurances from Ms Kelly have been welcomed by the Association of Home Information Pack Providers (Ahipp).

“Ruth Kelly has today provided much needed clarity for consumers, the Hip industry and energy assessors and she has reaffirmed the government’s commitment to the future of Hips,” said Ahipp director general Mike Ockenden.

“We now call upon all industries that touch the home buying and selling process to get behind the implementation of Hips, in order to deliver the benefits to home sellers and buyers.”

Tags: energy, future, market, hips, phased introduction

Base rate should remain at 5.5%

We are likely to see interest rates rise again this summer but borrowers can sit comfortably for the rest of this month at least.

The Bank of England Monetary Policy Committee (MPC) is due to announce a base rate decision on Thursday June 7th but industry figures are not predicting another rise.

Interest rates have increased four times since August 2006, taking them to 5.5 per cent, the highest level since April 2001.

Despite many experts seeing it as inevitable that the base rate will rise again before the end of the year, Lloyds TSB says that it does not expect another rise in June.

“We may well see a rate rise before the summer is out, but a move this month is highly unlikely. We’ve seen rates increased four times since August last year and the effects of these are only just starting to show through – inflation is coming off the boil, the housing market is cooling and signs of slower activity are appearing in the retail sector,” said Trevor Williams, chief economist at Lloyds TSB Corporate Markets.

“However, it’s still too early to judge the full impact of these cumulative increases, especially those that have taken place in the past nine months.

“The most likely outcome of this month’s meeting is that the MPC will opt to hold rates and buy time to gauge the impact of recent increases, before making another move,” he concluded.

The news will be welcomed by those with credit cards, loans and mortgages.

Tags: interest rates, Bank of England Monetary Policy Committee, rise.Interest rates, June, tsb, nine months, market

Three billion in savings pulled from ING

Annoyed savers with money saved with ING Direct have pulled three billion pounds in savings from the bank.

Many customers have been outraged by the bank’s failure to pass on interest rate rises to savers, and as a result many have pulled large sums of cash that they were savings with ING. According to bank officials there are a number of customers that have removed large balances from the bank to try and find a better interest rate elsewhere, but the bank also stated that overall customer numbers hadn’t been affected.

According to bank officials ING is not prepared to compromise on services for other customers in order to try and get better rates for others. Launched in 2003, ING Direct has boasted a reputation as a bank that offers competitive rates of interest as well as good customer service. However, the interest rates on savings accounts with ING Direct have been stuck at 4.75% for some time.

The Bank of England has raised interest rates four times in the past year, with interest rate rises in August 2006, November 2006, January 2007, and May 2007. Customers are angry because ING has failed to pass on the interest rates that were applied by the Bank of England in November 2006 and January 2007. However, bank officials state that the latest interest rate, which was announced in May, will be applied to savings account in June.

One ING official stated: ‘The vast majority of customers are still with ING but those customers with higher balances who are rate conscious are people who are constantly looking for best rates in the market. Are there better rates out there? Yes there are. Do those companies pay all their customers the same rate? No they do not. We are trying to be consistently fair with all our customers so 5% is the highest and the lowest interest rate they will receive.’

Tom Smith
4th June 200

Tags: customers, bank, rise, rate, england, savings, interest, accounts, market

Rental market is growing

The demand for rented accommodation in the UK is reaching record levels.

That is according to Paragon Mortgages, which carried out research and found that a huge majority of landlords are seeing demand for their properties grow.

In total, 92 per cent of respondents say that demand is stable, growing or booming and Paragon claims that this is the second highest level on record.

The mortgage provider says that these results point to a changing housing market with people opting to rent instead of buy due to its affordability and flexibility.

In addition to these figures, Paragon also discovered that landlords’ properties are now empty for less time than previous years, with the average property being without a tenant for just 2.96 weeks per year – a fall of two per cent compared to the last quarter.

“We have been running this survey for five years and have seen a very strong trend of growing tenant demand throughout this period,” commented John Heron, director of Paragon Mortgages.

“But recently, in both our own research and that of others, we’ve seen demand for private rented accommodation hit new peaks.

“Demographic influences that underpin the private rented sector are all continuing to rise, which bodes well for continued healthy growth of the buy-to-let sector,” he added.

If you are interested in buying a property and then renting it out make sure that you shop around for the mortgage that best suits your needs.

Tags: rent, new peaks, level, buy-to-let sector, market, sector, john heron, accommodation

HSBC launches zero-fee mortgage policy

Those people averse to paying a fee on their mortgage may be enthused by HSBC’s new offering.

Available for a limited period until April 30th, every new HSBC mortgage taken up with the group will be fee-free.

During the peak spring homebuying season, people looking to invest in bricks and mortar can take up fixed-rate, tracker and discount HSBC mortgages with the usual booking fee of £499 waived.

Standard valuation, completion fees and exit fees will also not be applicable to HSBC mortgages.

Rob Chesters, head of mortgages at HSBC, said there had been a “proliferation” of high arrangement fees across the market “which can wipe out the savings made by re-mortgaging, particularly if the fee is wrapped up into the mortgage loan”.

He added: “However, it’s not just about upfront costs – further borrowing fees, admin fees and duplicate statement fees can all add up.

“Exit fees, in particular, are difficult for borrowers to compare – but while other lenders have been putting their exit fees up, HSBC’s has remained exactly the same – zero.”

HSBC mortgages also possess no higher lending charges, with flexible payments facilities also featuring.

Tags: mortgages.rob chesters, tracker, market, United States, head of mortgages, spring homebuying season, borrowing fees, head

Youngsters buying to let

The buy-to-let (BTL) market in the UK is beginning to be dominated by people aged between 26 and 35 years.

It has traditionally been a market for older people but new figures from Mortgage Trust show that the youngsters are catching up.

Around 26 per cent of new investors who own one property are aged between 26 and 35, while the same age group also makes up 16 per cent of BTL investors with up to three properties.

This rise in numbers appears to be a fairly recent phenomenon, with the number of 26 to 35-year olds with up to three BTL properties rising from 14 per cent in the last six months alone.

“Traditionally buy-to-let has been perceived as something for the more mature investor,” commented John Heron, managing director of Mortgage Trust.

“However, recently we have been witnessing an increase in the number of younger professionals choosing to make a considered and long term investment in property.

“We are seeing a new generation of young people who are preparing for the future by making long term financial plans. New landlords are looking at an investment that will see them safe for the long term – possibly even into retirement,” he added.

As many younger people struggle to put money into a pension scheme, investing in property and then renting it out is a great way to ensure financial security for the future.

Tags: market, increase, heron, investment, new figures, long term investment, Business Finance, future

Space travel insurance

Commercial space travel may soon become a reality for some, with Richard Branson reportedly two years away from offering out-of-this-world flights.

If that is to become a reality than potential space tourists need to begin thinking about space travel insurance and one firm is already looking into it.

Bupa says that it is prepared to go where no travel insurance firm has gone before and offer cover to the next generation of travellers for their space trips.

“We provide insurance cover to people in 190 countries so it wouldn’t be a giant leap to add outer space to that list,” said Nick Potter, head of Bupa Travel.

“We are looking into space tourism as a real market for the next generation of travellers, especially as Russian cosmonauts have already taken tourists up into space.”

Richard Branson’s Virgin Galactic project is already picking up speed and the business tycoon hopes to perform test flights as early as this year.

With that in mind, Bupa says that it wants to provide cover for travellers but will need to carry out a full investigation into the dangers involved.

“Obviously we have to take into account various issues, such as the effect such a journey would have on the human body, although clarity will come in this new area of travel within the next decade,” added Mr Potter.

If you are planning an earth holiday make sure you get travel insurance so that you can relax and enjoy yourself with peace of mind.

Tags: market, firm, russian cosmonauts, insurance cover, mind space, earth, Spaceport America, world flights

Buy-to-let market set for growth

More and more people are choosing not to get a mortgage and are instead renting property.

According to Alliance & Leicester, the buy-to-let market is growing rapidly and the firm expects that it will have ballooned by 40 per cent within ten years.

The company has released its Changing UK Household Market report in which it states how the market will grow and what will be the factors affecting it.

Three main drivers for the market were identified, the first of which is a rise in the renting market, with more students and single people looking for places to live.

A change in attitude among the younger generations was also named as a key factor, with it now being more socially acceptable not to own a home.

Finally, Alliance & Leicester said that larger numbers of people are now using rented property to ensure they have flexibility.

“Demand for rented property has been growing steadily in recent years and returns on buy-to-let have increased,” said Stephen Leonard, director of mortgages at the firm.

“This growth is expected to continue – as the number of renters rises further and buy-to-let becomes even more attractive to both existing and potential landlords.”

Tags: landlords, london, home, market, Stephen Leonard, flexibility, uk, change

Brits losing faith in property

Many Brits are losing their faith in the property market as a way of investing.

That is according to the Standard Life Savings & Investment Index which shows that continually rising interest rates are denting people’s confidence.

Since October 2006 confidence in our homes as a savings vehicle has fallen by 19 per cent and Standard Life says that this is down to recent interest rate rises.

In response to the findings, the firm is calling upon all of us to ensure that we do not invest all of our money into a property without sufficient financial backup.

“With interest rate rises having such an immediate impact on investor confidence, I hope that investors will now consider spreading their investments across a wider range of investment categories and vehicles when planning for their financial futures,” said Trevor Matthews, chief executive of Standard Life Assurance.

The index also revealed that over half (51 per cent) of us are saving for a holiday, while retirement, home improvements and buying a car followed.

Tags: Trevor Matthews, investments, rising interest rates, Impact, market, executive

BoE: ‘Interest rate future uncertain’

We are living in an age of uncertainty when it comes to interest rates and this could have a big effect on savers and borrowers.

The Bank of England (BoE) has revealed in its quarterly inflation report that there is “considerable uncertainty” over inflation rates in the short and medium term.

It comes following a recent decision by the BoE to freeze interest rates at 5.25 per cent, which followed three rises since August 2006.

“The [interest rate setting Monetary Policy] Committee noted at its February meeting that the central projection, under the assumption that bank rate followed market yields, was for inflation to settle around the target in the medium term, though the near-term profile was unusually volatile,” said the BoE report.

“Moreover, there was considerable uncertainty about the path of inflation, both in the near term and further ahead.

“Given that outlook, and bearing in mind the balance of risks, the committee judged that no change in bank rate was necessary at that meeting to bring CPI [consumer price index] inflation back to the target in the medium term,” it noted.

People who have taken out a mortgage or a loan need to keep a close eye on interest rates in the coming months, with many industry figures predicting two more rises of 0.25 per cent.

Borrowers should always ensure that they are financially strong enough to deal with a rise in interest rates.

Tags: monetary, Consumer Price Index, committee, market, Monetary Policy Committee, rate, UTF-8