June 9th, 2011 by
THE ARTICLES SHOWN ARE FOR INFORMATION ONLY AND DO NOT CONSTITUTE ADVICE OR RECOMMENDATION
The Bank of England’s Monetary Policy Committee has voted to keep the base rate on hold at 0.5%.
They also opted to maintain the size of the Asset Purchase Programme at £200bn.
Interest rates have been on hold at 0.5% since March 2009.
Six members of the MPC voted to keep the base rate at its historic low of 0.5% in May, while Andrew Sentance opted to increase it by 0.5% and Spencer Dale and Martin Weale voted for a 0.25% hike, as they did in April.
Regarding the stock of asset purchases, eight members of the MPC voted in favour of keeping it on hold in May, while Adam Posen voted to increase it by £50bn as he did the previous month.
Ben Thompson, managing director of Legal & General Mortgage Club, says: “The gap between bank rate and inflation may be widening but there are precious few other indicators that provide a rationale for increasing BBR from its current rock bottom levels.
“The Bank remains in the thick of it; on the one hand needing to ensure that a sustainable economic recovery is baked in, on the other hand ensuring it does not lose its credibility as an independent rate setter that is capable of maintaining a controlled and low inflation economy. It’s a tough one that, but the recovery has to come first.”
Posted in Mortgage news | 
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June 3rd, 2011 by
THE ARTICLES SHOWN ARE FOR INFORMATION ONLY AND DO NOT CONSTITUTE ADVICE OR RECOMMENDATION
Coventry Intermediaries is providing further support to first time buyers with the launch of a totally unique ERC free 5 year fixed rate mortgage at 90% loan-to-value. This new product stands out in a market where the majority of first time buyer fixed rate products are limited to 2 years.
With uncertainty over when interest rates will move and by how much, a first time buyer mortgage that provides certainty over 5 years is the responsible option, ensuring your client’s repayments aren’t affected by a very different interest rate environment in only a couple of years time.
Furthermore, this product comes with the added benefit of not having any ERCs, providing your client with the flexibility of being able to overpay or change product without penalty.
Designed to support first time buyers
It’s not just about the rate, it’s about certainty. Coventry’s new first time buyer product is designed to give borrowers the best start in their first home:
A competitive rate of just 5.99%
A 5 year term – giving certainty of rate beyond the uncertainty of the current market
Low upfront fees – just a £199 booking fee, with no arrangement fee
ERC free – the flexibility to move to another mortgage product, as well as the opportunity to make overpayments, without paying a penalty
Valuation up to £670 included
Available from 7th June 2011
Posted in Mortgage news | 60 Comments »