Mortgage Interest Rate Rises

Traditionally UK mortgage rates have been 1.5% to 2% over bank base rate - especially in the days of Building Society monopoly

Around Christmas this year we saw the differential between the two expand as the Bank of England fought inflation and mortgage lenders strove to accumulate cash reserves

This is continuing and we can see the gap widen ever further, don't be surprised if it doesn't even hit 3% over BBR

Mortgage Queues - Remortgages unlikely

At last the media are reporting what we have known for quite some time - Banks are not lending what little cash surplus they do have, to other bank

Spare cash is kept in house for balance sheet or future lending - LIBOR is now 6% or more and BBR Bank Base Rate is likely to fall

Last night it was publicly acknowledged the days of bundling loans and off loading them to then be able to re lend the money are well and truly over - Banks and Building Societies will for the foreseeable future be lending only their own money, or rather, your money coming in over the counter and what profits they can make

The whole economy, Bank of England Chancellor of the Exchequer, Treasury and Government will want, along with house builders and builders merchants and estate agents and conveyancing solicitors want to keep the housing market moving so remortgages will dry up, all money being used for purchases

Heathrow Terminal 5 BAA British Airways

It defies belief, doesn't it?

All those protests, all that money and all that persuasion and now, just like Wembley Stadium and the FA they can't organise famine relief in a soup kitchen

Just like British Rail or Network Rail none of the bosses responsible will even lose their bonus, let alone their job - in fact we bet they will be rewarded for having made us Brits the world laughing stock, again!

Nationwide Building Society House Price Index

Nationwide has today released its latest figures on the average house price indices

Guess what, prices have gone down, again! Well we all knew that and that it was going to happen - this is the fifth consecutive month the average house price has gone down but the 'experts' reckon the house value is actually up on last year - pah!

Compared to one year ago, house prices remain 1% higher, year on year that is, wow!

The slowed market is, it is claimed, reflective of the higher cost of borrowing, higher interest rates and a severe slowing of earnings growth - fear of redundancy is not yet quoted but we do recommend someone looking to protect themselves and sickness insurance also