UK set for square root-shaped recovery September 6, 2009 IT is almost official: we are out of recession. The economy is growing again, albeit at a snail’s pace, the equity and debt markets have bounced back, some firms are posting higher profits and there has been a mini-renaissance in City deal-making. All of which is great news but certainly not enough to uncork the [...]
FSAunder fire as building societies fight rules boost September 6, 2009 CITY financial watchdog the Financial Services Authority (FSA) has come under fire from building societies over its proposals to clamp down on their ability to lend to consumers. The lenders are understood to have teamed up and sent a fierce letter, through the Building Societies Association, to warn the FSA the rules will hamper their [...]
Call to close Fannie and Freddie September 2, 2009 The US Mortgage Bankers Association (MBA) has urged the government to replace twin mortgage lenders Fannie Mae and Freddie Mac with a group of private firms issuing mortgage bonds backed by the state. The MBA’s plan would see federally regulated private firms known as Mortgage Credit Guarantor Entities – nicknamed “McGees” – purchase loans, sell [...]
HSBC debuts ultra-low rate on home loan September 2, 2009 HSBC has waded further into the mortgage market by offering a new deal at 1.99 per cent for borrowers who can stump up a 40 per cent deposit. The rate, the lowest ever for a home purchase or remortgage and a substantial discount on the bank’s standard variable rate (SVR) of 3.94 per cent, will [...]
Lending sees improvement August 20, 2009 GROSS mortgage lending rose 26 per cent in July on the previous month but remains 36 per cent down on 2008, the Council of Mortgage Lenders (CML) said yesterday. In the latest sign of a relative improvement for the UK housing market, the CML figures showed that gross mortgage lending totalled an estimated £16bn last [...]
Blow for Northern Rock credit holders as it halts bond payouts August 18, 2009 NATIONALISED lender Northern Rock shocked bond markets yesterday by ceasing payouts on several of its bonds in a bid to hoard cash ahead of a further £3bn government bailout. The value of the failed sub-prime mortgage lender’s credit plummeted as it announced it is to delay all payments where it is legally possible. The lender [...]
NAB snaps up Challenger unit August 18, 2009 National Australia Bank, the top lender in Australia, said yesterday it has agreed to buy Challenger Financial Services’ mortgage unit for A$385m (£192m) to up its market share. NAB said the deal would give it an additional A$4bn worth of residential mortgages. The acquisition follows its purchase of Aviva’s Australian businesses in June for A$825m, [...]
WHAT THE OTHER PAPERS SAY THIS MORNING August 17, 2009 FINANCIAL TIMES 3I TO OFFLOAD EUROPEAN INVESTMENTS3i, former powerhouse of Europe’s venture capital industry, has entered exclusive talks to sell a portfolio of 36 European venture capital investments to a consortium led by Coller Capital and HarbourVest Partners for about £100m. The talks follow 3i’s decision last year to abandon early stage investment in start-up [...]
House prices and home loans showing signs of stabilisation August 11, 2009 HOUSE PRICES rose 1.6 per cent in June on the previous month, narrowing the annual decline to 10.7 per cent, according to official government data published yesterday. The Department for Communities and Local Government (DCLG) said that UK house prices rose by 2.6 per cent in the quarter ending June 2009, compared to a fall [...]
THE LONDON REPORT August 5, 2009 The FTSE 100 closed down 0.5 per cent yesterday, after weaker than expected economic data in the US dragged equities lower, with oil producers and miners leading the losers. The index ended 24.24 points lower at 4,647.13, shy of Monday’s close when it hit its best closing level since the collapse of Lehman Brothers late [...]