Press Room

MPC can't cut yet

Thu, 07 Aug 2008 14:07:00 +0100

Ray Boulger of Charcol, the UK�??s leading independent mortgage adviser commented, �??As today�??s no change decision by the MPC was expected, the content of the Bank of England's Quarterly Inflation Report due to be published next Wednesday will perhaps be even more interesting than today�??s decision.

Charcol launches 4.99% 2 year tracker with a maximum arrangement fee of £137,500!

Fri, 11 Jul 2008 12:47:00 +0100

Charcol has launched an exclusive range of large loan 2 year tracker mortgages giving clients the option to trade off the interest rate and the fee. The cheapest rate available is Bank rate �?? 0.01%, giving a current pay rate of 4.99%, and this deal carries a 2.75% arrangement fee.

MPC has little room to manoeurve this month

Fri, 11 Jul 2008 12:22:00 +0100

Ray Boulger of Charcol, the UK�??s leading mortgage broker commented, �??Today�??s no change decision by the MPC was widely expected. However with the economic news from nearly all sectors of the economy getting worse by the day, a rate cut is badly needed to help restore some confidence to consumers and reduce the financial pressure on both them and industry.

Charcol tracks UK mortgage trends in new monthly index

Wed, 20 Feb 2008 12:23:00 +0000

With the mortgage and property landscape rapidly evolving to fit a changing economic situation in the UK, Charcol, the whole of market, fees free broker, has launched the Charcol Mortgage Monitor giving an insight into market trends and the habits of buyers and remortgagers.

Bank rate cut no suprise but only a limited pleasure

Thu, 07 Feb 2008 14:57:00 +0000

�??The increasingly worryingly economic situation made this month�??s bank rate cut all but a certainty. With the Monetary Policy Committee (MPC) receiving significant criticism for not cutting the rate for a second consecutive month in January, after a unanimous vote...

Increased tracker margins wipe out effect of bank rate cut

Thu, 31 Jan 2008 12:42:00 +0000

Lenders are continuing to increase the margins on their tracker rates at present, although the good news for borrowers is that more competitive sub 5% fixed rates are coming to the market; some now available with flat fees below £1,500.

Will bank rate fall next month?

Mon, 08 Oct 2007 11:52:00 +0100

�??The minutes of today�??s meeting will be particularly eagerly awaited, for a clue to next month�??s decision�?? says Ray Boulger of Charcol.co.uk �??This is the first time for a long while that an MPC meeting has been held with the 2 year swap rate, currently 5.7%, below Bank Rate. In normal times one would also expect 3 month Libor, currently 6.26%, to be below Bank Rate when the next move in Bank Rate is expected to be down. However, these are not normal times and the swap market is currently a better indicator of where the market expects Bank Rate to go than Libor. �??Failing to cut Bank Rate today was a missed opportunity to help redress some of the problems made worse by The Bank�??s handling of the Northern Rock situation. With 3 month Libor having been as high as 6.9% since the last MPC meeting, and still 0.5% above the Bank�??s reference rate, monetary policy has been much tighter over the last month than the Bank thought necessary to control inflation. A 0.25% cut would have brought 3 month Libor down to around 6%, a level the Bank thought adequate for the market peak but now too high in view of the damage done to the economy by the credit crunch. �??The further fall to 1.8% in the CPI for August is additional justification for a rate cut, as is the slowing housing market. Activity in this market has fallen sharply over the last couple of months with fewer sellers as well as less buyers. Looking at the year on year growth in house prices is misleading. What is important is what is happening now, not what happened at the end of last year. Lies, damn lies, and house prices �??An analysis of the real figures from Nationwide shows a significantly different picture to the publicised seasonally adjusted ones. The real monthly changes for the last 3 months are + 0.1%, - 0.2% and finally for September + 0.4%, producing a real increase over the last 3 months of just 0.4%, compared with + 3.9% for the 3 months to June. The seasonally adjusted, or doctored, figures for the last 3 months were + 0.1%, + 0.6% and, for September, + 0.7%, producing an increase over the last 3 months of 1.4%, compared with 2.5% for the 3 months to June. �??Thus, in the real world, the Nationwide figures for the last 3 months show house prices increasing at an annualised rate of only 1.6%, compared with 15.6% only 3 months ago! Furthermore the US housing market is still deteriorating, as are the housing markets in some Eurozone countries, including Ireland and Spain. We will not escape some negative impact from the economic downturn other countries will suffer from falling house prices.�?? So what should borrowers do now Ray? �??There has been some tightening of criteria in the mainstream market over the last month, but only on the high LTV mortgages, although several lenders have reduced the number of mortgages in their product range. Some lenders, notably HBOS Group companies, have increased their Buy to Let rates substantially and some have also done this for self cert mortgages. However, it is the sub prime market that is talking the biggest hit, with rates going up substantially and a severe tightening of criteria, such as maximum LTVs being reduced to 75%. The heavier the adverse credit allowed the greater the impact. �??Despite further falls in the cost of fixed rate mortgages over the last month, the more it appears that we are at the top of the interest rate cycle the less reason there is to buy a fixed rate. Therefore trackers still offer better value for those borrowers who don�??t need the certainly a fixed rate provides, although with little difference now between the best fixed rates and the best trackers some borrowers will prefer to opt for the safety of a fixed rate.�??

Charcol says 5.75% looks like the top of the cycle - so when will Base Rates start to fall?

Thu, 06 Sep 2007 13:03:00 +0100

�??Today�??s decision by the MPC to leave Bank Rate unchanged at 5.75% was regarded as a foregone conclusion by the market�?? says Ray Boulger of leading independent mortgage adviser, Charcol.co.uk."

Have we reached the peak in both bank rate and fixed rates?

Thu, 02 Aug 2007 12:18:00 +0100

�??Today�??s decision by the MPC is the first in many months that will bring cheer to the UK�??s mortgage borrowers. A simple hold would not normally bring sighs of content around the country, but today�??s decision may well signify that rates have reached their peak and that the next movement in bank rate will be downward, albeit not until next year,�?? says Ray Boulger

Charcol mortgage product and best buy news

Thu, 19 Jul 2007 11:57:00 +0100

Despite brief dips last week, swap rates have continued to increase and currently stand at 6.32%. Many lenders have re-priced their fixed rates at least monthly since the first rate rise of the year in January, including Abbey, Bank of Ireland, Halifax and Northern Rock. In an unsettled period for borrowers, John Charcol takes a look at the best products on the market.

MPC forges on with rate hike to 5.75%

Thu, 05 Jul 2007 12:47:00 +0100

�??Most economists anticipated today�??s rate rise, following concerns that the Consumer Price Index would not fall back to the target 2% without another hike. Last month�??s MPC knife-edge vote of 5-4, with The Governor himself clearly wanting to make a point by voting, against the majority of his committee, for a rise, also made it more probable�??, says Ray Boulger of leading independent mortgage adviser, John Charcol.

Rate rises are already doing the trick for the housing market so it's hold for now

Thu, 07 Jun 2007 12:34:00 +0100

There is little doubt that the four interest rate rises in the last 10 months are now having the desired effect on the housing market. As we enter the warmer months of the year prices are certainly cooling off, but it remains to be seen whether we have reached the peak of this cycle.

Charcol.co.uk offers free mortgage advice to those with poor credit

Tue, 29 May 2007 13:42:00 +0100

Charcol.co.uk has decided to offer borrowers with a poor credit history the chance to get tailored mortgage advice for free. In a market that is awash with brokers who charge exorbitant fees, Charcol.co.uk is determined to break what it sees as the vicious cycle of debt.

Consider your remortgaging options and act now to avoid overpaying

Tue, 22 May 2007 11:17:00 +0100

Following this month�??s bank rate rise, many SVRs are already as high as 7.75%, well over 2% higher than some of the best deals currently on the market. Charcol has released five easy steps to help homeowners to remortgage and avoid unnecessary overpayments.

A quarter point today should do the trick says Ray Boulger

Fri, 11 May 2007 12:07:00 +0100

Ray Boulger of Charcol, the UK�??s leading Independent Mortgage Adviser, comments on today�??s decision by the Monetary Policy Committee (MPC) to increase Bank Rate by 5.25% to 5.5%.