The UK’s consumer debt burden is stifling hope of economic recovery June 27, 2012 THE Eurozone crisis has grabbed all the headlines. Yet Britain’s economic problems are not exactly the same as those of the Eurozone. In Euroland, the crisis has centred on banking and sovereign debt. In Britain, we have already given our banks plenty of capital. Remember the part-nationalisation of RBS and Lloyds TSB? It was in [...]
…but repossessions now hitting the north June 25, 2012 MORTGAGE holders in northern regions are more likely to lose their homes to lenders than people in the south, a group of surveyors said yesterday. Parts of the north east and north west of England have significantly higher rates of repossession, the data from e.surv found, though the group added that banks are trying to [...]
Banks snap up £5bn of cheap loans in auction June 20, 2012 THE BANK of England injected £5bn of emergency liquidity into banks yesterday in an attempt to mitigate the costs of unexpected shocks from the Eurozone. Sir Mervyn King announced last week that the Extended Collateral Term Repo (ECTR) Facility would be activated to counter “market-wide stress of an exceptional nature”. All successful bidders will pay [...]
Mortgage woes grow for older house owners June 18, 2012 THE NUMBER of over-60s struggling to keep up with mortgage payments is on the rise, a leading counselling group said this morning, while separate figures show that people hoping to buy a home are being squeezed out of the property market. Among people who have a mortgage, an inability to keep up with payments is [...]
Government’s plan to subsidise credit could easily backfire June 15, 2012 USUALLY, formal dinners at Mansion House in the City are highly enjoyable but somewhat predictable affairs. This one was unusually exciting. For the first time I can remember, the speeches from George Osborne and Sir Mervyn King included major news bombshells. The Bank is launching an £80bn “funding for lending” plan to cut the cost [...]
Government’s plan to subsidise credit could easily backfire June 14, 2012 USUALLY, formal dinners at Mansion House in the City are highly enjoyable but somewhat predictable affairs. This one was unusually exciting. For the first time I can remember, the speeches from George Osborne and Sir Mervyn King included major news bombshells. The Bank is launching an £80bn “funding for lending” plan to cut the cost [...]
Homeowners with long-term loans enjoy a rate hike pause June 13, 2012 INTEREST rate growth on mortgages steadied in May, according to Bank of England figures out yesterday – though economists warned this is likely to be a temporary and uneven pause in the long-term rise in rates. Homeowners with the riskiest loans saw a jump in rates last month. Banks and building societies offering a two-year [...]
Iceland’s stunning comeback gives Eurozone food for thought June 12, 2012 GUESS which developed country could enjoy the fastest growth this year? Come on? Alright, then – it’s Iceland. Its economy expanded by 2.4 per cent quarter on quarter in the first three months of the year, its fastest pace since its meltdown, boosted by exports, tourism and consumption. Annual economic growth was 4.5 per cent, [...]
Housebuilder Bellway enjoys strong sales June 8, 2012 Housebuilder Bellway announced today that it had enjoyed a “resilient” spring selling season, with visitor levels and reservation rates having surpassed expectations. This successful period meant that Bellway’s target set at the beginning of the financial year of achieving 5 per cent volume growth is now “secure”. Reservations increased following the introduction of government scheme [...]
The subprime mortgage crisis isn’t over – UK taxpayers remain liable June 7, 2012 THE subprime mortgage crisis isn’t over. On the back of misguided government policies, taxpayers in the US and UK remain on the hook for huge sums. The ideology of affordable housing must end. It took just 13 years to destroy the American mortgage market with devastating effects for the rest of the world. The process began [...]