Benefits of Mutuality?

The Nationwide has announced that they are ending their policy of offering the same rates for every customer.

This is regrettable because they were seen as different and in my opinion their stance with regard to this was perceived as one of the benefits of mutuality. That said, offering different rates depending on the status of the buyer does tend to favour first time buyers, which in difficult times for many of them, can be argued to be a good thing for them at least.

Nationwide often criticised other lenders, particularly in a high profile advertising campaign based on the benefits of mutuality being demonstrated in one rate for all borrowers, and to reverse this stance looks to be a bit hypocritical.

I’ve added a link to read about what was said in the Times; if you are stuck on a standard variable rate or simply want to address your borrowing, discuss rates, look at buy-to-lets or to find out what’s out there, then give Jane a call or e-mail her.

http://business.timesonline.co.uk/article/0,,9063-2474919,00.html

Jane Robertson
020 7 491 5060
j.Robertson@morgans.co.uk


Johnny

Target Two Point Zero

You may or may not be aware that the government has a target for inflation, which is 2.0%.

There is also a contest for sixth-formers and the first rounds start shortly. It’s a joint effort run by the Times and the Bank of England.

Have a look.

http://business.timesonline.co.uk/article/0,,8209-2450968,00.html

Does actually give some helpful understanding of why interest rates fluctuate, how the economy is driven and the impact of interest rate changes.

Johnny

Interest rates, it was inevitable

The Monetary Policy Committee had their monthly meeting and has announced that interest rates need to go up.

The Bank of England base rate now stands at 5.00%, which is the highest it has been since August 2001.

Johnny

Bank of England Rate Rise?

Well, they keep saying that interest rates are going up, but this time it seems inevitable.

Inflation needs to be kept under control, yet manufacturing needs healthy progress. And, this means there is an argument for both sides.

Mortgages, credit cards, overdrafts, business loans (all debt that isn’t fixed in other words) could all move upward after today’s monthly monetary meeting, which will be announced at midday.

Yet, we need manufacturing to continue to progress and expanding the working force helps the economy to grow at a healthy pace, without this it can weaken our position internationally.

We’ll know later which way the MPC will call it.

Johnny