Don’t panic! Standard and Poor insists bonds blamed for credit crunch pain are safe August 26, 2014 The complex and opaque structured bonds blamed for exacerbating the credit crunch have turned out to be relatively safe investments, credit ratings agency Standard and Poor’s insisted yesterday. Banks were criticised for taking portfolios of bad loans and wrapping them up into mortgage-backed securities before the crunch. They were then given high-quality ratings by S&P and others, [...]
UK property prices: Mortgage approvals fall as cooling measures take their toll August 26, 2014 Mortgage approvals fell in June as cooling measures introduced by the Bank of England took effect, figures by the British Bankers' Association (BBA) showed on Tuesday. The number of mortgages doled out fell to just under 42,800, from 43,200 in June. Gross mortgage borrowing also fell to £10.9bn in July from £11.1bn in June. But [...]
UK house prices may be rising, but it’s better to buy than to rent August 25, 2014 It is cheaper to handle the costs associated with buying a house rather than paying rent according to data from Halifax. While this fact is not new – Halifax's data suggests it's been the case since 2009 – it is interesting that despite a rise in house prices over the last year (up 10.2 per cent [...]
Rent or buy? First-time buyers in London save £1,000 a year compared to renting as mortgage rates remain low August 23, 2014 Londoners managing to jump on the property ladder are saving £984 a year by making mortgage repayments instead of paying rent as a result of low rates and rising rental prices. New home owners in the capital are pocketing more money than any other region along with first-time buyers in the West Midlands, saving £984 [...]
Bank of America’s $17bn mortgage settlement is biggest banking fine ever August 21, 2014 Bank of America was yesterday hit by the biggest banking fine ever, as US authorities charged the lender $16.6bn (£10bn) for mortgage fraud. The bank gave mortgages to customers who could not afford them, then packaged up the toxic loans and sold them on to investors and the US government under the pretence that they [...]
New York Report: Dow passes 17k as S&P breaks new record August 21, 2014 US STOCKS ended higher yesterday, with the S&P 500 at a record after a flurry of positive economic data, as investors hoped for signs from an annual meeting of central bankers that interest-rate hikes are not imminent. The Dow Jones industrial average rose 60.36 points, or 0.36 per cent, to rise above 17,000 points again. [...]
UK homeowners brace for interest rate hike with fixed mortgage payments August 20, 2014 Most homeowners in the south east are worried about the impact of an interest rate hike in the next 12 months, a Halifax study shows today. However, increasing numbers are preparing for the increase by fixing their mortgage payments. Halifax found 53 per cent of people in the south east were concerned about rates, while [...]
Mortgage lending rises 15pc to its highest level since 2008 August 20, 2014 Gross mortgage lending rose to £19.1bn in July, the Council of Mortgage Lenders (CML) said today – the highest monthly figure since August 2008, when it stood at £19.3bn. The figure rose 17 per cent from £16.7bn in July 2013, and seven per cent from June's £17.9bn. The number of property transactions also increased, by [...]
Banker belt boom outside London will be a boon to Bovis Homes – Bottom Line August 18, 2014 Six weeks ago I wrote on these pages that I thought there was “scope for housebuilders to continue their bull run”. Bovis Homes is thus well and truly in my good books. Yesterday’s strong set of results boosted its share price, which is now 7.5 per cent higher than when I penned my last bullish [...]
CNBC Comment: Why Germany risks a property bubble August 18, 2014 HEAR the words “London property”, and “bubble” is rarely far behind. House prices in the capital rose by 20 per cent in the year to May – although last week’s Rics indicator showed that the market is now pausing for breath, as it responds to warnings over tougher mortgage standards and the expectation of higher [...]