BoE Consider Negative Interest Base Rate

The Bank of England is considering the “extraordinary” idea of negative interest rates as one of a number of radical policies to help return the UK to growth.
Paul Tucker, deputy governor for financial stability, raised the possibility in front of MPs after saying the Bank could be doing more to help the economy, including measures to boost lending to small businesses.
Negative interest rates would mean high street lenders paying the central bank to place their money with it. The move would be intended to encourage more lending to businesses and households. But it could also lead to a reduction in the interest paid on individual savers’ accounts held with high street banks.
The Bank has considered cutting rates from their record low of 0.5pc in the past but decided against doing so for fear of bankrupting a number of smaller building societies. To get round the problem, the Bank is reviewing a possible change to its remit so it can set a separate interest rate specifically for excess deposits placed by financial institutions at the central bank.
This could have dramatic effect on mortgage repayments including the possibility of many people having no interest payments at all.

Funding For Part Built Development Sites

Typically these are bought from receivers at attractive prices, and unlike traditional development lenders we are able to get involved part way through a project. Funding can be provided to complete the purchase, and with additional security we can also fund the development costs in stages.
We are also able to fund projects where the developer has taken the site as far as he can using his own funds, and needs a final tranche of funding to complete the build.

BTL Rates Reduced

BM Solutions is reducing rates by 0.15% and increasing cashback on selected products currently available in the 0-75% LTV buy-to-let product range.

From today, the following products will see rates reduced:

– 0-75% LTV, 2 year fixed rate product is reduced by 0.15% to 4.54% with a £995 fee. This product is available with a £500 cashback

– 0-75% LTV, 3 year fixed rate product is reduced by 0.15% to 4.64% with a £995 fee. This product is available with a £790 cashback.