Nationwide to scrap interest-only loans October 4, 2012 ONE of the UK’s biggest mortgage lenders yesterday said it would withdraw interest-only mortgages to future homeowners from next week, in a further sign of the squeeze on higher risk lending. Nationwide Building Society, the third biggest mortgage lender in the country, wrote to brokers yesterday saying it would stop offering the mortgage on 11 [...]
UK pushes Europe for tougher finance rules October 3, 2012 NEW TREASURY minister Greg Clark last night praised the EU’s tough new banking proposals, and demanded the authorities get even stricter on rogue financiers. But analysts warned the proposals derived from a report by Finnish central banker Errki Liikanen could drive up banks’ funding costs by splitting retail and investment operations, and push down stocks [...]
Rates hiked at Santander October 2, 2012 BORROWERS who have a mortgage at Santander face higher repayments from today, when the lending giant raises its standard variable rate (SVR). Santander will raise its SVR 0.5 percentage points, to 4.74 per cent, blaming increasing funding costs, which it says drove competitors’ SVRs up five months ago. It also laid the blame on liquidity, [...]
EU banking report raises prospect of bailout divisions October 2, 2012 THE EU’s Expert Advisory Group, chaired by Erkki Liikanen, reported yesterday on whether to legally separate retail from investment banking – as considered by the Vickers Commission and discussed at the weekend by Ed Miliband. The Liikanen Report proposes five things. First, although the report suggests investment banking could be done within the same banking [...]
Osborne hit by drops in credit and factory stats October 1, 2012 HOPES for a growing recovery in the UK economy were dented yesterday by two data releases that exposed weak lending rates and another contraction in the country’s manufacturing sector. Consumer credit and mortgage lending both unexpectedly sank in August, according to figures from the Bank of England, dipping by £134m and £276m respectively. Total lending [...]
A strange kind of green shoots: Welcome to the New Normal October 1, 2012 GREEN shoots in the economy are a bit like beauty: they are in the eye of the beholder. Such is the confused, contradictory state of the British economy that one can just as easily be bullish or bearish, depending on which facts one chooses to pick out. For every piece of good news, one can [...]
London Barometer September 27, 2012 The sales market is now chronically undersupplied with 30 per cent fewer properties available and 30 per cent more offers agreed than August last year, confirming that demand for property in the capital is continuing. With mortgage rates at a record low and a growing number of buyers, if you were looking to sell your [...]
After more banks signed up to Funding for Lending, is it likely to help UK business? September 25, 2012 YES Corin Taylor Funding for Lending – the scheme run by the Bank of England which seeks to stimulate the economy by making cheaper loans available to firms and individuals – is fine as far as it goes. But we must be sure not to overstate its likely benefits. Those companies that would already qualify [...]
Britain needs more venture capitalism – not a state bank September 25, 2012 HERE is a simple question. What do you think would do more to help the provision of finance for small firms? Vince Cable’s new state bank, which will begin its operations in 18 months’ time, or a radically improved tax system to improve the provision of equity financing and venture capital? In other words, is [...]
Frustrating UK tax quirks can easily mean missed mortgage payments September 24, 2012 WHEN HMRC wrongly changed my tax code last October, I was paying 40 per cent of my total income as tax for six months. It had a huge impact on my finances – my take home pay went below my mortgage costs. And HMRC couldn’t correct it, despite admitting its error. In the end I [...]