Last Thursday the Bank of England’s Monetary Policy Committee (MPC), voted at 8-1 to maintain the Base Rate at 0.5%. In the same meeting, the MPC also decided to maintain the stock of purchased assets financed by the issuance of central bank reserves at £375 billion.
The MPC is made up of nine members – the Governor, the three Deputy Governors for Monetary Policy, Financial Stability and Markets and Banking, the Bank’s Chief Economist and four external members appointed directly by the Chancellor. The appointment of independent members is designed to ensure that the MPC benefits from thinking and expertise in addition to the internal members.
The decision
The MPC’s decision was formed by external MPC member Ian McCafferty, who voted yet again, (he has previously voted six times in the past year to raise the rate by 0.25%) to increase the rate. Martin Weale is another external member of the MPC whom has formerly voted five times within the last year for a rate rise however, has since voted more recently for no change.
The effects
The Bank of England’s Bank Rate is the benchmark figure for banks to base their interest rates upon. However, as the rate has been so low for six years, ‘challenger banks’ are leap-frogging over traditional banks to offer consumers far more attractive rates of return. Investors are actively seeking increased rates of return through alternate financers. Alternative finance providers such as Peer-to-Peer lenders of course, take the Bank of England’s Base Rate into consideration. Many P2P lending platforms even tailor products to the rate but, the realisation that investors will seek alternative routes for better rates is now evident. It is also important to note that it is now reported that the BoE won’t raise rates until 2017.
The solution
We at Wellesley & Co understand your frustration when looking for an investment option that will see you achieve worthwhile rates of return. That’s why we have tailor made our model and products through consumer demand. Wellesley & Co is a unique Peer-to-Peer lending platform that delivers straightforward asset backed investment solutions. We offer investment terms from 30 days – 5 years that can see you achieve rates of return of up to 6.32% per annum.
Peer-to-Peer lending platforms are different to banks, whilst we offer investment and borrowing options for borrowers and lenders alike, there is risk involved as we are not covered by the Financial Services Compensation Scheme (FSCS).
Wellesley operate by lending invested funds to experienced property developers, which have been successfully accepted to our platform after thorough analysis by our Credit Committee. Our Credit Committee ensures that each borrower meets the terms and conditions of our borrower agreement and ultimately, suits our investors. But please note, although we have tiers of security embedded within our model, investment through Wellesley & Co involves lending to individuals and companies and therefore your capital is at risk and interest payments are not guaranteed if the borrower defaults.
Why not base your investment choices on solid foundations and maximise your opportunities by investing through Wellesley & Co? For further information, please contact us on 0800 888 6001 or [email protected].