Two thirds of economists oppose Help to Buy October 11, 2013 A Bloomberg News survey of 31 economists has shown a majority oppose the government's controversial Help to Buy scheme. Two thirds of the economists surveyed described the scheme as "bad." The government intervention into the housing market will see taxpayers on the hook for 15 per cent of a home's value, the purpose of which [...]
Business loans up as recovery gets underway October 9, 2013 SMALL businesses are at last benefitting from improved loan availability and better interest rates, Bank of England data revealed yesterday. Banks are also witnessing increased demand from firms as confidence increases and encourages investment plans. A net balance of 8.5 per cent of banks saw demand for loans rising from small firms, compared with a negative [...]
Lenders fear bubble if UK does not get more houses October 8, 2013 MORTGAGE lenders yesterday warned house building levels are still dangerously low, as the government’s new Help to Buy scheme launched with the backing of five banks, including HSBC. The scheme gives a government guarantee to buyers with a small deposit saved up, making banks more willing to lend and increasing the range of mortgages on [...]
Q and A: How can I get a loan with Help to Buy? October 8, 2013 Q Am I eligible for a loan with this guarantee? A The loans are available to buy a house for less than £600,000 that you will live in. It only applies to capital repayment loans, and is only for buyers with a deposit of between five and 20 per cent of the price. Q How [...]
Rates for Help to Buy unveiled October 8, 2013 Mortgage rates for the controversial Help to Buy initiative have been unveiled. RBS announced that it would be offering two and five-year fixed rate contracts at 4.99 per cent and 5.49 per cent respectively. Halifax is offering a two-year fixed rate of 5.19 per cent. The governments scheme will see taxpayers on the hook for [...]
Virgin Money is the fourth lender to join Help to Buy October 7, 2013 VIRGIN Money yesterday became the fourth bank to sign up for the Help to Buy Scheme, which from today will offer state guarantees to homebuyers. It joins RBS, Lloyds’ Halifax brand and challenger bank Aldermore in offering mortgages with deposits worth as little as five per cent of the home’s value. However, new figures on [...]
It could be worse for Carney October 7, 2013 WHILE Bank of England governor Mark Carney faces problems convincing markets to accept his forward guidance scheme, new historical evidence suggests he may be getting off lightly. Newly released diary pages from Margaret Thatcher’s economic adviser Alan Walters claim that Bank governor Gordon Richardson “got a boll***ing” for raising the benchmark interest rate while she [...]
Why discretionary government action can often lead to contradictory policies October 7, 2013 WITH breakfast news littered each morning with groups demanding funds or interventions from politicians, it’s hard not to conclude that appetite for all-acting government is returning – perhaps explaining Ed Miliband’s recent radicalism. But using discretionary government actions to try to solve every negative outcome or demand creates problems, not least in that it leads [...]
CNBC Comment: Fresh concerns for America’s housing market October 7, 2013 BEN Bernanke and the US Federal Reserve have done all that mere mortals can do to repair the housing market post-financial crisis, but despite tarting up the mortgage industry like Cinderella for the ball, buyers are not jumping into the golden carriage to attend the best party ever staged. How can this be, when house [...]
Row escalates as Help to Buy policy launched October 7, 2013 CRITICS of the government’s Help to Buy policy rounded on the scheme yesterday, accusing it of risking another property bubble. Speaking to the BBC Sunday Politics, Jonathan Portes, head of the National Institute of Economic and Social Research, said: “The main impact of this scheme will be to push up house prices. Who loses? People [...]