Tesco delays entry into UK mortgage market
Tesco, the leading UK supermarket group, has confirmed plans to enter the UK mortgage market in the first quarter of 2011 have now been delayed until the summer of 2011. It seems that a number of regulatory issues and the company's inability to put together a transparent and user-friendly mortgage operation have forced the slight delay. The company is adamant that the new service will be more transparent than anything on the market at the moment and more user-friendly. If this is the case, then a wait of just a few months may well be worth the wait for UK house buyers?
Competition in the UK mortgage market continues to build despite the fact that the UK property sector is still under pressure. We have seen some overseas companies attacking the UK market with many trying to take advantage of the disdain between current mortgage lenders in the UK and UK property buyers. Whether the new entrants to the UK mortgage market will be able to loosen their purse strings, at a time when traditional mortgage lenders have tightened their own purse strings, remains to be seen but this could be the difference between a move to a new era, or a return to the old era.
Rate fears prompt best-buy mortgage withdrawal
Lenders are beginning to withdraw fixed-rate mortgages as fears grow that the Bank of England will raise interest rates next month.Earlier this week official figures revealed that inflation in Britain had increased faster than expected to hit 3.1 per cent.And as the Bank's governor writes to chancellor Gordon Brown to explain why consumer price index (CPI) inflation is 1.1 per cent above the gover...Read More
Leading mortgage tracker funds under pressure to release collar
It has today been revealed that Nationwide has removed the collar from their mortgage tracker fund which stopped the rate on the agreement going below 3.49%. There had been some concern that further reductions in the UK base rate would lead to higher profit margins for UK banks and defeat the object of reducing base rates.
This is a very important climb down by the Nationwide and th...
Should you be looking towards a fixed rate mortgage?
Over the last few months we have seen competition increase in the UK mortgage market which has led to a number of standard variable mortgage rates falling to very attractive levels. This has also impacted upon fixed rate mortgages which have also fallen over the last few months. So is it now the time to look towards switching from a standard variable rate mortgage to a fixed-rate mortgage? Even...Read More
How can the Bank of England increase mortgage liquidity?
Only 24 hours ago it seemed certain that the Bank of England was to introduce a fee of around 0.25% on funds held on behalf of UK banks with the Bank of England. However, today Mervyn King has denied these allegations and confirmed there are no immediate plans to change the interest received on money held with the Bank of England on behalf of UK banks. So how can the Bank of England now increase l...Read More