Bank of England Maintains Bank Rate

The Bank of England Monetary Policy Committee has just announced that it will hold the UK interest rates at their record low of 0.5% for yet another month. The committee also voted to maintain the size of the quantitative easing programme at £375bn. This stimulus programme is a bond-buying programme financed by the issuance of central bank reserves. It was not expected that the Bank of England would do anything but leave the interest rates and bond-buying at their current levels, although recent signs are pointing to a continued recovery on the UK economy. At present most economists do not expect the Bank of England to change interest rates at least until the first half of next year and the recent fall in inflation rate has reduced the pressure on the Bank to increase rates sooner rather than later. Investec chief economist Philip Shaw said: "For now, with the economy growing...
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Happy Anniversary 0.5% Interest Rate

The Bank of England today announced that it will again maintain the Banks base rate at 0.5%. This means that today is the 5th Anniversary of the UK Bank Rate at its historic low of 0.5%. This is the first rate decision since the Bank amended its "forward guidance" policy, introduced by the new Governor Mark Carney, which linked this rate to unemployment figures. This guidance has now been replaced by the so called "fuzzy guidance" which ties the borrowing rate to the speed of recovery as measured by 18 indicators. It was expected that the base rate would remain at 0.5% due to the reports previously made by the bank. Indeed with inflation on course to ease over the next year or so, there is a strong likelihood that 5 March 2015 will be the sixth anniversary of the 0.5% rate. Markets expect the Bank of England to hold the...
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BoE reports lending on dwellings increased

The Bank of England today released its "Money and Credit" statistics for January 2014. In the release they have reported that the lending secured on dwellings has increased by £1.4 billion in January 2013, up from £1.2 billion on the previous 6 monthly average.
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UK interests rates remain static as Bank of England maintains 0.5% base rate

The Bank of England voted yesterday to keep the UK Interest rates static at 0.5%, their record low initially introduced just under 5 years ago. The BoE Monetary Policy Committee (MPC) also decided to keep the level of the Asset Purchase Programme, known as quantitative easing, at £375 billion. This has remained at this level since it was increased by £50 billion back in July 2012. The MPC stated that they reached their decision within the context of the guidance announced alongside the August 2013 Inflation Report. Their latest projects will appear in the forthcoming Inflation Report next week. However Mr Carney, the governor of the Bank of England, has previously indicated that he does not want rates to increase for some time, even though his forward guidance target for unemployment of 7% has nearly been met, with the jobless figures last month being 7.1%. Some analysts believe that the bank...
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Record high for UK houshold debt and Increase in Property Debt

UK Housholds are at record levels of debt, with individuals now owing £1.43 trillion. Total lending to individuals secured on dwellings was also up by £1.2 billion to £15.7 billion. This was higher than the monthly average over the last 6 months, which was £1.0 billion.
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Strongest Gross Lending in five years

    The Council of Mortgage Lenders Gross Lending report has seen the strongest performance in gross mortgage lending in five years. The CML estimates that the total gross lending was up to £17.6 billion in October - a rise of 9% over the month and 37% in total over the year since October 2012. The last highest being in October 2008. Commenting on market conditions in this months Market Commentary, CML chief economist Bob Pannell observes: “Housing activity is set to strengthen further in the short-term, and to contribute materially to overall economic growth. “Combined with the Bank of England’s recent optimism about the economy, this has led some commentators to speculate that an early rate rise may be on the cards. We do not currently share this view, which we believe underplays the importance that the MPC attaches to a secure recovery before raising rates." The CML going...
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BoE sees property lending Increase in April

The Bank of Englands Lending to Individuals, now encompassed within the Money and Credit report, shows an increase in overall lending and that secured on dwellings.
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Raising money for home improvements

People improve their homes for all sorts of reasons. They might be uniting two small living-rooms to create a spacious den the whole family can enjoy with room to spare. It might be because theyre putting the property up for sale and looking for a cunning way to add to the price tag. It could be because the familys crying out for more space, but loath to abandon the beloved home thats served them well for so many years.
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Bank of England sees Overall Lending Fall - but an increase for Property Lending

The Bank of Engalnd (BoE) this week released its Lending to Individuals for October 2012. In it it reports the Total Lending to have falled by £0.3 bn, compare to the previous six months average increase of £0.6 bn
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BoE Figures show a fall in Lending

The Bank of Englands Lending to Individuals data for August shows a fall in lending, down by £0.4 billion compared to the previous six-month average increase of £0.7 billion.
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BoE Lending still positive but Property lending falls

The Bank of England (BoE) has recently released its June lending to individuals figures and reported a rise of £0.3 billion compare to the previous 6 month average increase. The 12 month growth rate however was unchanged at 1.0%. Within total lending, the amount secured on dwellings actually fell by £0.4 billion, compared to the previous six-month average increase of £0.9 billion. The three-month annualised growth rate decreased by 0.3 percentage points to 0.3% whilst the twelve-month growth rate was unchanged at 0.8%. This means the gross lending secured on dwellings was £11.0 billion in June, compared to the previous six-month average of £12.2 billion. Repayments of loans in June was £11.1 billion, as opposed to the previous six-month average of £11.5 billion. Loan Approvals Not only does the Bank of England report on the amount of lending to individuals, both against property or otherwise, but it reports on the actual...
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Bank of England votes to Pump more money into the economy

[caption id="attachment_4688" align="alignright" width="267" caption="Bank of England Pumps more money into the economy."][/caption] The Bank of England (BoE) today voted to maintain the Bank rate at 0.5%, continuing the long running record low. This was contrary to some speculation, albeit small, that the Bank may reduce the bank rate further. The Banks response to this is that lowering rates further would not have the desired impact, of course this remains an option to them over the medium term. Indeed the European Central Bank did cut its rate today from 1% to 0.75%. However the Banks Monetary Policy Committee (MPC) did vote to increase the level of the asset purchase programme, known as Quantitative Easing by £50bn. This extra £50bn being pumped into the economy raises the total amount within the QE stimulus to £375bn. Without this increase the Bank sees a danger that the UK Inflation will fall below its target...
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Bank sees total Lending to Individuals rise again in May

Within the total lending lending secured on dwelleings was up by £0.6 billion compared to the previous 6 month average according to recent Bank of England Lending data.
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December Lending up says Bank

The Bank of England’s ‘Lending to Individuals’ announcement this week for December 2011 should some increases across the board with overall lending. The total lending rose by £0.4 billion – although this was less that the previous 6 months average of £0.9 billion. This was however the end of quite a turbulent year. Within the overall lending to individuals, that secured on dwellings/property also rose, but by £0.7 billion and this was slightly higher than the previous 6 month average of £0.6 billion. The 3 month annualised rate increase was also up to 0.9% and 12 month figure up to 0.8%. The gross lending secured on dwellings was therefore reported at £13.0 billion with repayments at £11.4 billion roughly in line with the previous 6 month average. The number of actual loans approved was pretty much unchanged at 52,939 and those loans for remortgages increased slightly to 32,422.
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0.5% remains for Interest Rates, £75bn more for the Economy

The Bank of England today took the decision to inject a further £75bn into the UK Economy via its programme of quantitaive easing (QE). This is in addition to the £200bn it has already pupmed into back in 2009. The Bank was widely expected to take some form of action either this month or next month after further economic data was released. However it looks like the data for the UK economony, showing that it grew by 0.1% - less than previously thought, caused a decision this month. Bank of England injects further £75bn into economy "In the United Kingdom, the path of output has been affected by a number of temporary factors, but the available indicators suggest that the underlying rate of growth has also moderated," the Bank said in a statement. Interest Rates The Bank also decided that it would keep the historic low interest rates at 0.5%, something at...
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Mix bag for Banks Lending Figures

The Bank of England’s lending figures for July 2011 were a mix of positive and negatives news. The lending secured on dwellings did rise in July by £0.7 billion, which on the face of it is good news this was lower than the 6 month average of £0.9 billion. Yet the 3 month annualised growth rate actually decreased by -0.1% to 0.5%, although the 12 month growth rate increased by 0.1% to 0.8% Against a backdrop of 0% change in the lending secured on dwellings in the month of June, these figures are positive, although continues the widely known trend of a flat economy. The actual number of loans approved for house purchases did however increase to 49,239, having increased consistently over at least the last 4 months. The loans approved for mortgages also increased for at least the 4 month.
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Bank keep UK Interest rates at all time low of 0.5%

Bank of England Keeps Interest Rates Low! The Bank of England (BoE) again today decided to keep UK interest rates at their record low of 0.5%. The Monetary Policy Committe has kept rates at this low level continuously since March 2009, and it was widely expected that it would do so again this month. This was heavily to do with the continued subdued economy with GDP figures only showing  a tony 0.2% growth. "Unchanged interest rates were always a nailed-on certainty", said Howard Archer, chief UK economist at IHS Global Insight. The Banks programme of quantaitative easing (or Asset Purchase Programme) was also kept at £200bn. The overall forecast still seems to be that the Bank will increase from this record low, yet the timing is off much speculation. Some forcasters have predicted there will be no rate change until 2013. "There is a certain amount of inflationary inertia in the...
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Lending remains as flat as a pancake!

The Bank Of England (BoE) lending to individuals for June 2011 remains flat. Although the overall lending saw a slight rise by £0.4bn, this was lower that the previous six-month average increase.
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Interest Rates maintained at all time low!

The Bank of England (BoE) this week again decided to keep the bank’s interest rate at 0.5%, the historical low initiated in March 2009. It has also decided to maintain the size of the Asset Purchase Programme, aka quantitative easing. There has been some calls for the interest rate to rise by members of the Monetary Policy Committee over the last few months due to the pressure on the economy by increasing inflation. However the Bank has previously indicated that it believes the inflationary pressures to be temporary and skewed by various one off factors. It is also clear that the maintenance of such a low interest rate is helping to keep some stability within the housing market, meaning that affordability of mortgage payments is now at 28%, down from the peak of 48% in mid-2007. For more information visit: http://www.bankofengland.co.uk/publications/news/2011/067.htm
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The best places to invest in the UK

  The basic idea behind investing in buy to let, is buying a property that you will be able to rent out, to either get an income from or pay off any borrowing taken out against the property when you buy it, and then enjoy the mid-term capital growth. So where are the best places to invest in the UK for buy to let? Well as with any investment, you are looking for the strongest return on investment. So with rental property you will generally be looking for highest rental return based on the property value i.e. the yield. Lets look at 2 examples... Hartlepool Average 2 bed house - £70,000 and rent is £425pcm i.e. a rental yield of 5100 per annum divided by 70000 i.e. 7.3%. Cheltenham Average value of a 2 bed house here is £180,000 and rent is £700pcm i.e. 8400 per annum divided by 180,000 i.e....
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