Investors seeking higher income from fixed-term products are facing a surprise split among policymakers on the Bank of England’s Monetary Policy Committee. Last week’s decision once again forces investors to plan for potential interest rates increases. Sparked by concerns over rising inflation, the rate-setters voted by a 5-3 majority to keep interest rates at the current level. Analysts had expected a 7-1 split but two more external committee members unexpectedly joined calls for an increase. The last time three MPC [...]
At the end of May, the latest quarterly assessment for REAL Bonds Series 5 & 6 continues to show generous security cover. Loans represent only 45.4% of the value of the security pool, still well below the scheme’s maximum permitted 75% loan-to-value. Director Alan Bate comments, "We see no reduction in demand for our financing facilities from experienced developers and landlords offering sound security, which will allow us to deploy fresh bond subscriptions well within the scheme's mandate.".