Bank of England leave interest rates frozen at 0.5%

Today, the Bank of England announced that they will leave interest rates frozen at 0.5% after speculation that we could see an increase of 0.25%. This will be welcome news for thousands of UK homeowners who could have seen the cost of their monthly mortgage payments increase as a result, or upon renewing their terms if they were currently locked in to a fixed rate deal. Although an increase would have been manageable for most, it highlights the danger of homebuyers borrowing beyond their means in the current financial climate as further increases in the future could plunge them into financial difficulty. For the time being however, UK homeowners can breathe easy where the cost of their mortgage is concerned at least.   Source: Bank of England/BBC   Founder and CEO of Emoov.co.uk, Russell Quirk, commented:  “While the recent hike in temperatures received a warm welcome by the British public, an increase...
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Can I Get a Mortgage with My Credit Rating?

Having a bad credit rating is often the source of further financial problems. You have limited financing options when your credit history is less than spotless. You also have to deal with higher interest rates and other premiums due to your increased risk factor. One of the most commonly asked questions is whether it is still possible to take out a mortgage loan with bad credit. We’re going to find out the answer right here in this article. Ways to Boost Your Credit Score Before you start searching for mortgage loans, it is actually worth it to take the time and look into your credit history. Instead of accepting the bad credit rating outright, you can take active steps towards improving your credit score. Boosting your credit score is not as difficult – or as time-consuming – as you may think. For starters, you can simply remove incorrect entries from...
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Bank of England Interest Rate Cut

The Bank of England has announced a cut in interest rates from 0.5% to 0.25%.  This is a record low and the first cut since 2009.  The Bank of England Governor, Mark Carney indicated that there could be a further cut if the economy worsens.  Generally an interest rate cut is good for borrowers and typically those with a mortgage and not so good for savers.  Mortgages As you'd expect a mortgage is typically the biggest debt that a household will have. An estimated 11.1 million households have one. The typical amount still left to pay on each home loan in the UK is £116,000, according to the Council for Mortgage Lenders.Using Office for National Statistics (ONS) house price data, a cut to 0.25% means a £22 monthly reduction in the bill for a variable 25-year repayment mortgage on a typically priced home of £211,000 having taken a 20% deposit into...
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Bank of England clamping down on buy to let landlords!

Larger landlords with four or more properties in their portfolio should be subject to tougher underwriting standards, the Bank of England’s Prudential Regulation Authority (PRA) has advised. The PRA claims that without further constraints, lenders expect a gross increase of 20% in buy-to-let borrowing over the next two to three years. It set out four measures designed to tighten buy-to-let lending standards: Lenders should consider the borrower’s costs associated with letting the property, including tax costs A borrower’s personal income should be verified if the lender wants to include it to support the mortgage Lenders should include future interest rate increases in affordability assessments at 5.5% There should be a special underwriting process for “portfolio landlords” with four or more properties The Residential Landlords Association, said the buy-to-let proposals were premature. Policy director David Smith said: “The Bank needs to be careful that it does not over-react to the current...
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Possible Brexit drives demand for mortgages

The possibility of Brexit is fuelling a surge in mortgage enquiries, reveals deVere Mortgages. The observation from the mortgage division of deVere Group, one of the world’s largest independent financial advisory organisation, comes as both sides of the debate on whether Britain should leave the EU up the ante in a bid to win UK voters’ hearts and minds ahead of the In/Out referendum in June. Mike Coady, Managing Director of deVere Mortgages, comments: “The UK’s EU referendum is getting almost wall-to-wall media coverage. The issue is dominating news agendas and it is likely to increasingly do so as we move towards the vote on 23 June. “The campaigning has noticeably ratcheted up a gear over the last two weeks.  This is especially so since the announcement of London Mayor Boris Johnson, who has a long-standing ambition to be Prime Minister, to back the Vote Leave lobby. “Despite pro-Brexit groups...
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Why Student Property Investment should not be impacted by rising interest rates

For the first time since 2007, interest rates are set to rise in the United Kingdom. This is something which an investor has not had to worry about in a while. However, they are going to have to start. A rise in interest rates is going to have an impact on your mortgage and the amount of yield you get from the properties you own.
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Should UK House Buyers Take Advantage of Historically Low Interest Rates, Or Wait?

Whether you are thinking about buying your first home in the UK or you are planning to expand or downsize, it is to your advantage that you take a closer look at the current market conditions. Interest rates on home mortgages in the UK are at historically low levels and normally you may be wondering how long the interest rates will stay this low or if they will go even lower in the near future.
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Deflation is coming to the UK

The UK is getting very close to outright deflation, alongside much of Europe. With the oil price still hitting fresh lows on a daily basis and the supermarkets engaged in a vicious price war, it is likely to keep falling for several months yet. Whether it actually dips below zero remains to be seen.
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Bank holds UK Interest Rates at 0.5% for yet another month

The Bank of England today again announced to keep the UK Interest rates at their record low of 0.5% for a further month. They also voted to leave unchanged the size of the quantitative easing programme. Last month all of the members of the Monetary Policy Committee (MPC), who vote on what to do with interest rates, agreed to keep rates on hold. It is widely known, mainly due to the governors announcements, that a rate increase is imminent, but the exact timing of the rate increase is unclear. Recent hints by Mark Carney indicate that this could possibly be by the end of the year, sooner than most of the financial markets expect. Generally the belief has been that the five year run of 0.5% interest rates would come to an end early next year rather than in 2014.  
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A Little Look at House Prices

House prices are on a lot of people’s lips a lot of the time and so I thought that perhaps I could contribute by collating some recent news items from across the country. The gist of them all is that house prices are rising rather quickly across the UK and especially in large metropolitan areas like London. They’re great for the sellers, not so much for the buyers.
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Top 5 Tips for Renovating a House

The prospect of renovating your home is exciting, but also daunting if you have a lot of work to do. Here are our top five tips to help you figure out the best way to finance your renovation:
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Bank of England keeps UK Interest rates at 0.5%

The Bank of England today announced that its Monetary Policy Committee had voted to maintain the UK Interest rates at 0.5% for yet another month. The MPC also voted to keep the size of the asset purchase programme, known as quantitative easing,  at the same size of £375 billion. That was pretty much as the analysts had predicted as although there is recent evidence of a recovery in the UK economy, the Banks earlier guidance had indicated there would be various factors required before a rise. Indeed the British Chambers of Commerce said on Thursday that a rate rise soon would be "premature". BCC chief economist David Kern said: "The decision to maintain interest rates and quantitative easing was unsurprising and appropriate. "Businesses need clarity that encourages them to increase investment, and at the moment the MPC is delivering this. However its efforts are hampered by repeated calls for interest rate...
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Prospect of rising interest rates to impact landlords

With the UK buy to let market currently experiencing a shortage of property caused by exceptional demand, many landlords have looked to take advantage of historically low interest rates to expand their portfolios.
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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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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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Property Predictions for 2014

With 2013 becoming a distant memory we find ourselves facing 2014 pondering the changes that will occur in the property market.   Nick Carlile, Managing Director, Platinum Portfolio Builder (PPB), would like to share his predictions for the year ahead when considering UK Residential Property Investment He focuses on the key issues that concern any investors or those contemplating a move into property, which are: Price Price is always at the forefront of any investor’s mind and the subject which generates the most debate! Nicks predictions for this year are that prices in London will begin to slow down (albeit there will be some level of growth) and other areas around the UK will instead experience greater levels of growth. Geographical Areas Nick believes, that for the best investments in 2014 (which provide greater discounts, double digit yields and a good income) the best strategy is to focus further North on...
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Bank maintains base rate - but could a rise in 2014 be on the cards

The Bank of Englands Monetary Policy Committee today voted to maintain the banks base rate at 0.5%. This was widely expected after previous guidance from the bank and governor Mark Carneys forward guidance approach. They also voted to maintain the £3.75 billion they have already made available via the bond-buying scheme known as quantitative easing (QE). The Bank has also not provided any further guidance as to when they may raise interest rates. With speculation that the Bank may have to refine its threshold announced previously, this could have been on the cards. The reason for this speculation is that previously back in August, governor Mark Carney said that unemployment would need to decline to 7% before any rise would even be considered. However with an improved economy coming out of the back of 2013, this may actually happen much sooner than expected. Previously the thought by the bank was that...
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Nationwide sees continued momentum closing 2013

Nationwide HPI House Price Index at the end of 2013 reported seeing continued momentum in the closing period
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Low supply likely to drive up asking prices

Rightmove.co.uks HPI for December 2013 sees a fall in asking prices, yet this is inline with the seasonal impact on the housing market. Indeed although a fall has been seen, it is the smallest December fall since 2006, which they believe indicates the recovery is gaining momentum.
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