Bank of America share price falls as $17bn fine crushes profits October 15, 2014 Bank of America Merrill Lynch (Baml) posted a tiny pre-tax profit for the third quarter, as the giant lender was still reeling from its record $17bn (£10.7bn) fine for bad behaviour in the mortgage market. Pre-tax income came in at $168m, down 93 per cent on the $2.5bn it made in the same period of 2013. [...]
London house prices may be starting to drop October 15, 2014 London house prices could already be falling, according to figures released yesterday by estate agents Haart. Prices in the capital were 3.3 per cent lower in September than in August. However, growth since September 2013 remains high at 19.8 per cent. A similar, but less extreme, trend is seen for prices for the whole UK. [...]
Britain’s bad bank sells off £2.7bn of loans October 14, 2014 GLOBAL investors yesterday snapped up £2.7bn of Northern Rock and Bradford and Bingley (B&B), in Europe’s biggest retail mortgage-backed security (MRBS) deal for three years. JP Morgan and Commercial First arranged the deal with UK Asset Resolution (Ukar), the unit responsible for the assets of the so-called bad bank parts of the collapsed lenders. The [...]
London house price boom set to stall in 2015 as tough new mortgage lending rules take effect October 14, 2014 House price growth is set to level off across the UK and could even be at risk of falling in the capital, according to industry experts. “It’s been indicated by the collapse in buyer in inquiries, there’s been a very sharp fall in London,” Joshua Miller, economist from the Royal Institution of Charted Surveyors, told [...]
House price rise cooling October 9, 2014 FURTHER evidence has emerged that the housing market cooled down in August. The Council for Mortgage Lenders, a trade association, reported that the number of loans for house purchase fell by 3.3 per cent in August. This remains 7.9 per cent above August 2013, however.
House prices to cool off after mortgage dip October 7, 2014 MORTGAGE lending fell significantly over the past three months, according to the Bank of England, suggesting the housing market will cool further. This is the first negative figure since the final three months of 2011 and marks a significant reversal in housing trends. House prices boomed over summer and are expected to grow 17 per [...]
Mark Carney wants power to limit your mortgage if house price boom threatens banks October 2, 2014 The Bank of England wants major new powers to cap mortgage loans, yesterday arguing it may need to rein in the housing market if the price boom starts to endanger banks. Officials want the ability to cap the loan-to-value (LTV) ratio of mortgages, as well as the debt to income ratios of some borrowers. The demands [...]
Will the Bank’s new powers to intervene in the housing market help prevent boom and bust? October 2, 2014 Rob Wood, chief UK economist at Berenberg Bank, says Yes. The Bank of England has a powerful set of weapons in its armoury to smooth out the cycles in the housing market. It can restrict the amount someone can borrow relative to their income, and the Bank has now asked formally for new powers to [...]
Bank of England backs move for greater powers over mortgage lending as it warns over financial instability posed by housing market October 2, 2014 The Bank of England has warned that the UK housing market represents a continued risk to financial stability, backing government calls for greater powers to cap mortgage lending for homes and buy-to-let properties. The BoE's Financial Policy Committee has come out in support of George Osborne's suggestion, which was initially put forward over the summerand reiterated [...]
Plan to stop permanent growth of mortgage red tape is rejected October 1, 2014 PLEAS for a sunset clause to be introduced on lending restrictions were pushed aside yesterday, as the Bank of England published its decision on mortgage loans. The Building Societies Association is worried new regulations will be introduced when the housing market is overheating, then never withdrawn when the market cools down. To combat this permanent growth [...]