Interest rate cut: Winners & Losers

win concept, think differentFollowing the decision by the Bank of England to cut base rate to 0.25%, whilst at the same time, offering additional financial support to banks and other lenders, we look at who are the main winners and losers after the change. Winners Some existing mortgage borrowers: If you have a tracker rate mortgage, which pegs the interest rate you pay to the Bank of England base rate, you will see a reduction in your mortgage payments. Around 20% of all mortgages are arranged on a tracker basis. If yours is ...

Buy to Let: Thousands to get refund after court decision

red refund stamp on tax formThousands of Buy to Let mortgage holders are due to share a £27.5 million pay out after a historic court ruling. The ruling, from the Court of Appeal comes after the West Bromwich Building Society increased the interest rate paid by 6,000 Buy to Let investors in December 2013. The hike saw tracker interest rates increased by 1.9% despite the Bank of England leaving base rate unchanged, at 0.5%, for years. Challenging the decision, a group of investors took the building society to court and has now won ...

Demand for fixed rate mortgages at record high

iStock_000009025017_ExtraSmallAccording to recent figures, published by the Council of Mortgage Lenders (CML), demand for fixed rate mortgages has risen to a record high. The CML’s figures reveal 83% of new mortgages, taken out in the first quarter of this year, were on a fixed rate; the highest proportion since records began in 1993. The increase in the number of fixed rate mortgages being taken out is part of an on-going trend. 10 years ago only 19% of new mortgages were of this type, ...

SIPPs: Why are interest rates on SIPP deposit accounts falling?

The interest rates on SIPP deposit accounts have been falling for a few weeks now, although the downward trend has gathered momentum over the past few days. We all know that Bank of England base rate has been stuck at 0.5% for over three years now, but just what is causing the recent reductions in SIPP deposit account interest rates? Swap rates Need advice on your SIPP?...