The Bank of England (BoE) has increased interest rates to 4.75 per cent. The move comes after 11 months of interest stabilisation, at 4.50 per cent. Commenting, Mark Blackwell, marketing director at the Derbyshire, said: “The move in interest rates may have come as something of a surprise to the financial markets as the BoE was widely expected to keep the Base Rate on hold for another month.”
Hamptons in exit fees call
Hampton International Mortgages has called on lenders to act on unfair exit fees after Financial Services Authority (FSA) concern over some lenders writing into mortgage contracts the freedom to increase exit fees without prior agreement with the borrower.
Hamptons technical director, Jonathan Cornell, said: “Lenders are already taking on the upfront costs of a new mortgage, such as valuations and conveyancing in order to attract clients. Surely the logical next step is for them to take on a borrower’s exit fees from their previous lender.”
Trends in buy-to-let remain positive
Paragon Mortgages’s buy-to-let index has revealed average rents achieved on residential investment properties have risen significantly over the last three months, by 3.48 per cent.
Paragon Mortgages managing director, John Heron said: “Housing demand is growing, with more single person households, higher numbers of students as well as the effect of immigration. The Department for Communities and Local Government (DCLG) forecasts 209,000 households need to be formed per annum.”
HML gets close
HML has announced the signing of a three-year servicing contract with Close Brothers in the UK to service its intermediary channel business originated through its own subsidiary Mortgage Intelligence. HML will process all the post completion administration from this channel following receipt of completed applications from Mortgage Intelligence. HML will also aid in portfolio sales and securitisation transactions for Mortgage Intelligence.
