Bank of England’s new interest rate norm not the same as the old – Mark Carney June 27, 2014 Mark Carney, the governor of the Bank of England, today suggested that interest rates may be heading for a "new normal" of 2.5 per cent, rather than the historical five per cent. Carney was decidedly vague regarding when this norm might be reached, suggesting 2017 as a possible date. He stressed that a mid-term norm [...]
Bank of England mortgage lending cap attempts to stop boom June 26, 2014 The Bank of England announced a new mortgage lending cap yesterday, with the hope that the rule would cool down the housing market if credit became too frenzied. Governor Mark Carney revealed the rule, which will put a ceiling on banks’ riskier mortgage lending. The financial policy committee (FPC) decision means that no more than [...]
Are the Bank of England’s planned mortgage lending restrictions likely to prove ineffective? June 26, 2014 Shehan Mohamed, senior economist at the CEBR, says Yes. Mark Carney’s new measures are unlikely to have an impact. Lenders are already operating within the proposed cap on the number of new high loan-to-income mortgages, and most are already undertaking stress tests on a possible rate rise. The macroprudential tools seek to provide tighter lending [...]
City Moves for 26 June 2014 | Who’s switching jobs June 25, 2014 JLL The professional services and investment firm, specialising in real estate, has appointed Michael Davis to lead a business unit focused on London’s emerging markets. He joins from Cushman and Wakefield, and has particular experience in the TMT, leisure and creative sectors. Sanlam Securities The corporate finance and broking arm of Sanlam Private Investments has [...]
Mortgage approvals fall on introduction of tighter lending rules June 24, 2014 Mortgage approval rates showed an overall drop in the month of May, according to new data. Figures from the British Bankers' Association show that the combined figure of loans for purchase, for remortgage and other secured lending, was down both on last month and on May of last year. The fall is a relatively small [...]
Tight mortgage rules slow down lending growth June 23, 2014 TOUGH new affordability checks have knocked mortgage lending, Bank of England data showed yesterday. Lending is still growing, but at a slightly slower pace after the mortgage market review (MMR) rules came into force in April. The number of banks reporting rising demand for prime mortgages outweighed those reporting a fall by a margin of 27.5 [...]
CNBC Comment: Questions for Carney: One year on June 23, 2014 BETTER a lucky governor than one that’s always right. At least, that’s what Mark Carney will be hoping for as he faces MPs today – almost a year to the day since he took over at the Bank of England. After all, the Treasury Select Committee could find plenty of things to quiz Carney about. [...]
London Report: Economic data to confirm rapid growth this year June 23, 2014 FIGURES released this week are expected to confirm that the economy grew at the fastest rate in nearly four years in the first quarter of 2014. Office for National Statistics (ONS) data, due out on Friday, will give the third estimate of output, and is expected to increase its original 0.8 per cent reading for [...]
Surge in profits for Berkeley as housing booms June 18, 2014 HOUSE builder Berkeley’s pre-tax profits rocketed upwards in the year to the end of April, soaring by 40 per cent as the housing market rapidly picked up strength. Profit after tax rose by £83.2m, a boost of 39.7 per cent on the prior year, bringing the total for the year to £292.9m, and earnings per [...]
House bills to rise with rates June 17, 2014 A LARGER interest rate hike than is currently expected would add thousands of pounds to UK mortgage holders’ bills, according to a warning from Legal & General. The financial services firm said yesterday that for the average property, a three per cent increase in interest rates would add £163.38 to a mortgage bill – the [...]