Base Rate Set to Stay Low? 05.01.2010

Author: Steve Olejnik Posted on: 05 January 2010

There are many opinions out there ranging from Base Rate staying below 1% for the next 5 yrs to an increase to 3% by the end of this year. A sure sign that nobody can really tell what will happen this year and that 2010 will be another challenging year as we climb out of the recession. For what it’s worth, our opinion is that Base Rate will remain low for the majority of this year at least. With the Consumer Price Index predicted to fall and stay below the Bank’s target of 2% and continuing fears of unemployment, we would not be surprised if Base Rate did not move at all in 2010.

 

The Bank of England’s Quantatative Easing program comes to an end next month and we expect to see an improvement in liquidity amongst the banks in the coming months. We are already seeing improvements to lending criteria and pricing and this is set to continue throughout the year. If you’ve missed some of our earlier product alerts, we now have improved options in the following areas:

 

HMO & Limited Company Buy to Let – MFB has access to exclusive funding for multi-let properties and those held in the name of a Limited Company. With improved rent to interest cover we can often arrange finance at 70% Loan to Value.

 

Light Refurbishment – We can now arrange Buy to Let mortgages for properties that require refurbishment before you can get a tenant in.

 

Development Finance – options are improving all the time as developers return to site and / or look to start new projects. Call us if you need to chat through your development finance requirements.

 

Whatever your mortgage requirements this year, we are here to help.

 

Wishing you a happy, healthy and prosperous 2010.