Mark Williams's Blog – November 2013 Archive (2)

The interest-only mortgage timebomb is ticking loudly and will only get louder according to statistics revealed in the Financial Conduct Authority’s (FCA) thematic review into interest-only mortgages, which was published earlier this year.

The review revealed there are now 2.6m interest-only mortgages due for repayment by 2041.

Worryingly, as many as 48% of those face a shortfall at repayment day, with an average figure of around £71,000.

Even more worryingly, the review…

The quarterly inflation report out today suggested the Bank of England could raise rates as early as the end of 2014 if unemployment continues to tumble and the economy improve.

Governor of the Bank of England Mark Carney commented Bank statisticians forsee a 40% chance unemployment will reach the 7% threshold by the end of next year. He added there is a 60% chance it will happen by the end of 2015.

Under the terms of Carney's Forward Guidance, the MPC…