Interest rate hikes risk a household debt tragedy if we don’t act now July 23, 2014 Beware the economist bearing forecasts. The only thing that’s ever certain about economic predictions is that they’ll turn out to be wrong. But this one’s nailed on: interest rates are going to rise. Hardly the riskiest punt – the current emergency base rate of 0.5 per cent can’t be sustained forever and, as yesterday’s Monetary [...]
In graphs: UK mortgage approvals on the increase July 23, 2014 The number of mortgage approvals rose in June despite tighter lending restrictions and indications that the housing market might be cooling slightly. Analysts had expected a slight fall and a total number of 41,375. Instead, the seasonally-adjusted data from the British Banker's Association (BBA) shows that the number of approvals for house purchases was up [...]
Nationwide sets mortgage cap and tough new stress test for home buyers July 22, 2014 Nationwide has announced it is capping all new mortgages at 4.75 times the income of the borrower, and setting a tough new stress test to ward off concerns over interest rate rises. The bank will impose a new 6.99 per cent stress test, an increase on the existing rate, although a spokesperson would not reveal [...]
Bank of America close to $13bn mortgage bill July 16, 2014 Bank of America Merrill Lynch is next in line for a multi-billion dollar settlement for toxic mortgage sales in the pre-crisis years, it emerged yesterday. The bank is negotiating the settlement, which could come to around $13bn (£7.6bn) – similar in scale to the bill faced by JP Morgan. Executives from the bank met Justice Department [...]
Comparison site sector under fire from watchdog July 16, 2014 Price comparison sites may be giving customers poor information, particularly when selling insurance products, the Financial Conduct Authority (FCA) said yesterday. Customers are too focused on the headline price of products, the FCA fears, and may not either consider or understand the differences in contract details. “Price comparison websites have increased in popularity among consumers with [...]
London house price rises reach 20.1pc, with UK prices up 10.5pc July 15, 2014 House prices rose 10.5 per cent year-on-year for the 12 months to May 2014, outstripping the 9.9 per cent rise registered for the same period last year and higher than the 10.2 per cent expected by forecasters. Rises were largest in London where prices increased by 20.1 per cent, higher even than April's 18.7 per [...]
Family Building Society pledges to support young homebuyers July 14, 2014 A new building society that aims to help young adults onto the property ladder by allowing family members to share the financial burden has launched today. The Family Building Society, an offshoot of the National Counties Building Society, joins a growing list of lenders and “challenger banks” looking to take on the traditional high street [...]
Mortgage lending growth still firm despite new regulations July 10, 2014 The number of loans for house purchases rose by a quarter in the year to May, according to figures released yesterday, suggesting no dramatic effect from the raft of new regulations for the sector. The Council of Mortgage Lenders (CML) announced that house purchase lending was up in value by 25 per cent to £9.6bn [...]
Citibank braced for $7bn mortgage mis-selling bill July 9, 2014 Citibank is preparing for a $7bn (£4bn) settlement to cover mortgage sales in the years before the financial crisis, it emerged yesterday. The giant US lender is in negotiations with the Department of Justice over the case, which relates to mortgages being packaged up and sold to investors and government bodies. The loans had been [...]
Mobile and online money transactions hit £1bn per day July 7, 2014 Mobile and online banking transaction volumes are close to £1bn per day, the British Bankers’ Association (BBA) revealed in a report out today. That includes 2.6m transactions per day on mobile apps, though customers tend to use computers for major transactions. Overall, £1.7bn per week is transferred through mobile apps and £6.4bn over other internet [...]