Pay cuts loom as prices fall to 61-year low May 19, 2009 AN ESTIMATED 80 per cent of workers face the prospect of a pay freeze or cut, after the measure of inflation used for the majority of wage settlements plunged last month. The Retail Prices Index (RPI), which is used for workers’ wage settlements and includes mortgage and rent payments, shrank to -1.2 per cent year-on-year [...]
West Brom denies it is in loans crisis May 17, 2009 WEST Bromwich Building Society yesterday denied that it is on the brink of failure after reports emerged that the Financial Services Authority (FSA) was seeking a “white-knight” bidder in a last-ditch effort to save the 160-year-old mutual. The regulator was said yesterday to have been so alarmed after seeing an early version of the lender’s [...]
DO YOU EXPECT UK HOUSE PRICES TO KEEP FALLING? May 17, 2009 HOWARD ARCHER IHS GLOBAL INSIGHT “We expect house prices to fall by around another 15 per cent from their current levels to bottom out around mid-2010. This would leave them some 35 per cent below the peak levels seen around August/September 2007.” MICHAEL SAUNDERS CITIGROUP“While housing is past the worst, the recovery in housing activity [...]
Savvy homeowners considering whether to lock themselves into a fixed-rate loan May 14, 2009 WE all know that interest rates are at record lows levels, and that those with tracker mortgages are rubbing their hands in glee. Indeed, the Council of Mortgage Lenders said this week that mortgage costs are at their lowest since 2004. But it won’t last for ever. With some suggesting that the economy could start [...]
WHAT’S AVAILABLE? BEST RATES May 14, 2009 First Direct offers a two-year fix of 2.99 per cent with a subsequent rate of 3.69 per cent (all rates are based on a 75 per cent, £150,000 mortgage). The fee is £898. Royal Bank of Scotland has a three-year fix of 3.99 per cent, rising to 4 per cent afterwards, with a £499 fee. [...]
Q&A: BUYING May 14, 2009 Q. Dear Camilla, I’m looking to buy a property but have we reached the bottom of the market or do prices have further to fall? A. Prices have fallen between 15 and 20 percent since the peak of the market, which was March 2008 for London. At the beginning of this year most analysts were [...]
L&G sales up but capital fears persist May 13, 2009 INSURER Legal & General (L&G) reported above-consensus first-quarter sales of £382m yesterday and said the worst of the crisis appears to be over, but fears over the firm’s capitalisation levels continued to dominate. L&G revealed a 3 per cent global sales rise, from £372m a year ago, which was massively bigger than analyst expectations of [...]
Low interest rates are crippling savers May 13, 2009 SO the Bank of England agrees that the recession has bottomed out – but it is refusing to be too optimistic about the recovery, and expects interest rates to remain at 0.5 per cent for a year or so. All very sensible; but this only tells part of the story for borrowers and savers. As [...]
Monica Ali’s Brick Lane follow-up never really reaches boiling point May 13, 2009 ONE of the most famous books to come out of the boom of the Eighties was Barbarians at the Gate. In this book, it seems that the nerds have taken over from Conan and his chums. In fact, the subtitle of the book makes it clear that greed was to blame – politicians and central [...]
TUC calls for tax reforms September 8, 2008 The Trade Union Congress (TUC) has called for a new higher-rate tax bracket for those earning over £100,000, putting it on a collision course with Conservative leader David Cameron. The TUC’s statement, made in advance of its annual conference which begins tomorrow in Brighton, contrasts sharply with a newspaper interview given by Cameron at the [...]