Mortgage approvals rise to one year high in June

A leading industry group has released data showing that the number of mortgage approvals for new property purchases in the month of June reached a one year high. The data was released last week by the British Bankers’ Association and showed that the number of UK mortgage approvals for June reached 31,747.

This figure for June was an increase from the 30,803 mortgage approvals that were seen in the previous month. It was also the highest value seen since July of 2010. Statistics Director from the BBA, David Dooks, said that banks were continuing to lend on mortgages for new property purchases but added that the mortgage market was still weak. He did state that there had been some level of revival in the buy to let market, with investors seeing the benefits of buy to let in the current climate where demand for private rental homes is at an all time high.

The results also showed that there had been a drop in net lending to non-financial companies, which fell by 2.5 percent. Officials said that this drop in net lending was partly due to low demand for credit from these companies, many of which are very wary about taking on further business debt in the difficult financial climate, with many preferring to try and pay down debt rather than take more debt on. However, this could have a significant negative impact on the growth of the economy according to many industry officials.

IHS Global Insight chief economist Howard Archer said: “It is likely a sign that companies are becoming increasingly wary about borrowing and investing in the current difficult economic environment – which in itself is worrying for growth prospects.”

Tags: new property purchases, June, value, month, growth, economist

September figures indicate that mortgage market will remain subdued

Industry officials have said that the mortgage lending figures that were recently released for September of this year indicate that mortgage lending levels are set to remain subdued for some time to come. Officials from the British Bankers’ Association said that a further fall in mortgage approvals in September was indicative of a continued slump in the mortgage sector.

September saw mortgage lending levels in the UK plunge to their lowest leve in ten years, and the number of mortgages that were approved also nosedived, falling to their lowest level in around eighteen months. The figures, which were released by the British Bankers’ Association, showed that net mortgage lending by the major banks came to around £1.6 billion for the month, which was its lowest since October 2006.

Industry experts have said that the figures that have been released seem to suggest that mortgage lending will continue to be slow and the market will remain subdued over the coming months. Officials have also said that potential buyers will remain cautious over the coming months which will further hamper the mortgage market.

Figures that were recently released by the Council of Mortgage Lenders mirrored the bleak outlook suggested by the BBA reports, and HM Revenue & Customs also released date showing that the number of property sales had also taken a hit. HMRC said that August saw the first significant property sales fall this year, with the sale of property said to have fallen.

In further bad news for the property market property prices are also set to fall further, with figures showing that they have already experienced another fall in September, which has taken the annual rate of gain down to just 2.6 percent.

Tags: mortgage lending levels, british bankers association, mortgage, mortgage lending, finance

Spring bounce continues for mortgage lending

Recently released figures have suggested that the spring bounce seen in mortgage lending has continued, with the increase in mortgage lending continuing in May. According to the figures mortgage lending for the month of May was at its highest level so far this year.

The figures have been released by the British Banker’s Association, with the data showing that 36,709 mortgage loans were approved by major banks during the month of May for those that were buying a property. However, despite this encouraging data HM Revenue and Customs has released figures showing that for the past three months the number of completed property sales has remained flat.

The number of sales for May came in at 73,000, and this equates to around 1000 more than the numbers seen in March and April. These figures are higher than those seen a year ago, but are still far lower than figures from 2006, 2007, and 2008.

With regards to the increase in mortgage approvals members of the BBA have said that this is the third month in a row that mortgage approvals have increased, indicating that the spring bounce in mortgage lending is set to continue.

The BBA also said that in the current climate, with the base rate still at its record low of just 0.5 percent, many people were still focussing on paying off their debts rather than trying to save money, as they were able to save more on borrowing interest than they were able to earn on savings interest, making this a more favourable option.

David Dooks, Director of Statistics at the BBA, said: “The low interest rate environment is resulting in customers choosing to reduce or pay off borrowing, particularly personal loans, rather than saving.”

Tags: mortgage, Mortgage loan, debts, finance, data, british bankers association, Director of Statistics, borrowing

Another drop in lending by banks to businesses

Recently released figures have shown that for the month of April the level of lending by UK banks to non financial businesses fell, with lending falling by £1.1 billion. The figures were released by the British Bankers’ Association, and officials said that whilst April marked another fall in business lending the level of the drop was smaller than those seen in the previous six months.

In the past six months the average decline seen over the period was £1.6 billion per months, so the April drop is significantly lower. Industry groups and government officials have been urging banks to lend more to businesses because of the importance to the economy, and the drop in lending seen in April has been put down to a number of factors.

The British Bankers’ Association has claimed that part of the reason that borrowing to businesses has fallen is because there is a lower demand for finance from UK businesses, as many are exercising caution when it comes to borrowing. The BBA said that figures from the Bank of England showed that corporate deposits had been rising sharply.

However, other industry official believe that it is not just lack of demand that is hindering lending from banks but also the fact that many businesses are struggling to get finance from banks even in cases where they need to borrow the money. On a separate note the level of net mortgage lending from banks also fell in April, dropping to £1.8 billion.

Economist, Ed Stansfield, stated: “April’s soft mortgage lending data add weight to the idea that last year’s upturn in approvals overstated the underlying health of the housing market. Moreover, since the looming fiscal austerity measures will keep a lid on mortgage demand while the uncertain funding outlook will limit the supply of mortgage credit, weak lending looks set to remain the norm for some time.”

Tags: Business_Finance, mortgage, bank, british bankers association, finance

More people to get access to bank accounts

According to recent report many more people will be able to get access to bank account facilities, after plans were announced by the government to force banks to offer bank account facilities to all. Under the plans, which were revealed in the recent budget, banks may have to offer at least a basic bank account to everyone that is legally entitled to have banking facilities in the UK. With banks having been at the receiving end of much criticism over the past year this is just one of the measures that are being looked at to try and tighten the way in which the UK’s banks operate.

The government claims that there are around 1.75 million people in the UK that have not got access to banking facilities at present, and hopes that this move will help to ensure that a large proportion of these people are provided with access to bank accounts. Many may be able to get basic banking facilities under the new regulations, and these are accounts that allow the accountholder to carry out transactions such as transfers, payments, receiving money, and setting up direct debits, but do not come with a cheque book or overdraft facility.

The British Banker’s Association has argued that the move is not necessary because people that want to have a bank account can have one anyway. Many of those that can only get access to a basic bank account are people that are on low incomes and are limited in terms of how much they can put into the account, or those that have a poor credit rating.

A promise was also made to move more quickly when deciding whether to grant a new banking licence to companies, and this was welcomed by consumer campaign group Which?. Officials from the group said: “People have been telling us how fed up they are with the sales culture that appears to have replaced customer service in our banks. New entrants in the market offering genuinely competitive products will help bring about the culture change the industry so desperately needs.”

Tags: british bankers association, bank account, basic bank account, which, bank account facilities, Ethical banking, Banking, bank

Banks leaving many high and dry by taking money from their accounts

A number of banks have been accused of taking money from consumers’ accounts by stealth, with officials stating that this practice is leaving many people high and dry, with no cash left with which to make essential payments such as pay bills, rent, and mortgage. Read more

Tags: banks, payment, british bankers association, Citizen Advice Bureau, Business Finance, advice bureau

What does the latest ruling in the High Court test case into bank charges mean?

The presiding judge in the ongoing High Court test case in to banking overdraft charges has recently made an announcement that has pleased the banking industry at a time when many are relieved to finally have some good news. The battle over bank charges began several years ago, when the Office of Fair Trading branded the charges that banks charge when someone goes over their overdraft limit as being unfair and unlawful. Read more

Tags: bank charges, andrew smith, ongoing high court, court, past charges, oft, british bankers association

Curb to charges could mean increase in bank fees

Britain could see an end to free banking in the near future depending on what happens with the banks charges case, and whether the fees that banks are allowed to charge for overdraft fees and charges can be curbed. If the charges are cut then banks and other financial institutions may decide that they are going to try and recoup the costs by imposing hefty service fees and charges elsewhere. Read more

Tags: housing, Banking, twenty years, increase, unjust charges, road, british bankers association

Foreign savings accounts back at the top of the best buys

Over the past couple of years consumers in the UK have seen a number of foreign banks enter the UK market, offering impressive interest rates on savings accounts and catapulting themselves to the top of the best buy tables. With some of these accounts offering very high rates on interest even on instant access account many consumers have switched their savings in order to make their money work harder for them. Read more

Tags: industry official, savings account, flock, past couple, wholesale money markets, savings, british bankers association, rate

Consumers can bank on changes to Banking Code

Changes are to be made to personal business and Banking Codes as the result of an independent review.

The review was followed up by a public consultation which drew out necessary reforms that will give consumers a fairer deal.

Among the reforms will be a step up in the amount of aid given to customers heading into financial trouble, greater clarity in cheque clearance and information on products and greater transparency of information for credit cards and credit card cheques.

Angela Knight, chief executive of the British Bankers’ Association, commented: “The Banking Code is the charter that sets out how customers are treated by their banks and building societies.

“These revisions to the code reflect the need to keep up with a changing world. It will continue to underpin the treatment and protection customers value and have every right to expect.”

Meanwhile, Paul Smee, chief executive of APACS, said that the improved transparent for cheque users is “great news” for all consumers but especially for those with basic bank accounts as well as small businesses.

Tags: public consultation, apacs, Banking Code, cheque, basic bank accounts, great news, british bankers association, Economy of the United Kingdom

Opening joint account requires ‘utmost trust’

Couples considering opening a joint bank account must be sure to have the “utmost trust” in one another, according to the British Bankers’ Association (BBA).

Brian Capon, head of media relations at the association, explained that, while joint accounts are still a popular choice for couples and can be useful for bill paying and saving money, those involved must be completely confident in the others’ integrity.

“Regardless of who pays the money in, if it is an account which allows either to sign, either of those people can draw money out and there is nothing to stop them drawing it all out or potentially running up an overdraft,” he said.

He added that consumers must do their research properly before going ahead with such an endeavour, to find out their rights and responsibilities.

Recent research by Abbey National found that 93 per cent of people with a joint bank account used it for paying household bills, while 83 per cent used it for shopping and 72 per cent to pay for holidays.

Tags: Opening, couples, Banking Services, integrity, british bankers association, utmost trust, Abbey National, research

Mortgage lending on the rise

Figures released by the British Banking Association (BBA) show that mortgage lending has reached a total of £21.3 billion in July, an increase of 12 per cent on last years’ figures.

The average mortgage loan rose to £156,900 in July, which is a rise of 13 per cent from July 2006.

Net mortgage lending growth rose to £5.7 billion, with unsecured lending rising to £200 million.

BBA head of statistics, David Dooks, said: “With customers seeking to replace deals or fix their mortgage costs, increased remortgaging activity boosted the banks’ lending in July.

“Lower approvals volumes simply reflected the seasonal pattern, so we expect the stable trend in the banks’ lending to continue over the next couple of months.”

Building society lending is not included in the figures – which reflect higher overall levels of remortgaging activity.

Tags: cent, stable trend, Banking, David Dooks, mortgage, statistics, british bankers association, british

Capital One fined by watchdog

Credit card provider Capital One has been fined £175,000 by the Financial Services Authority (FSA).

The fine comes as the industry watchdog found that the bank had inadequate controls regarding selling Payment Protection Insurance (PPI) to customers.

PPI is taken out approximately 7 million times each year, and covers debt repayments in case of an accident, sickness or unemployment.

While PPI can prove useful to those in debt, the FSA had found earlier this month as part of its ongoing investigation into the cover that some financial services companies were making its purchase a “default” choice for customers, using techniques such as a pre-checked box purchasing the cover on online application forms.

The regulator ruled that, in the period January 2005 to April 2006, Capital One did not provide adequate information about the policy to 50,000 of its customers, leaving its terms unclear.

The FSA conceded, however, that the bank did implement remedial measures before its ruling, which included compensating inadequately informed customers to the tune of around £3 million.

Tags: GBP, investigation, sickness, purchase, british bankers association, online application, fine

March mortgage approvals down

It seems that we may be beginning to see demand for mortgages weakening.

New figures from the British Bankers’ Association (BBA) show that the number of mortgage approvals in March fell compared to the same period last year.

In total, 198,000 mortgages were approved, signalling a fall of eight per cent on the same figures for March 2006.

However, the average mortgage amount rose by 12 per cent in 2007, reaching £150,800.

“Strong levels of gross mortgage lending reflect homebuyers and homeowners seeking out fixed rate mortgages as protection against rising interest rates,” said David Dooks, director of statistics at the BBA.

He went on to say that the drop on mortgage approvals indicated that “weaker demand is starting to emerge”.

The BBA’s figures also show that credit card borrowing fell by £0.1 billion in March, signalling a three per cent drop compared to figures for the same month in 2006.

Borrowing on personal loans and overdrafts remained pretty constant.

Tags: personal loans, 800."Strong levels, dooks, british bankers association, rate, mortgages weakening.New figures, cent, finance

OFT bank charges study welcomed

The announcement by the Office of Fair Trading (OFT) that it will be launching a study into bank charges and the perceived effects of the loss of free banking has been welcomed.

A number of organisations have come forward to welcome the decision which many hope will change the way in which banks treat their customers.

Citizen’s Advice (CAB) has backed it, saying that bank charges for unauthorised overdraft use punish the most vulnerable in society.

“We welcome the further work being done by the OFT concerning bank charges,” said Tony Herbert from CAB.

“Evidence from local bureaux shows that bank charges have a disproportionate effect on people already on low incomes; one charge may be enough to push them into the red and keep them there, incurring more charges that push them further into debt.

“It’s like running up the down escalator – you’ll probably never reach the top,” he added.

The British Bankers’ Association (BBA) has also given its support to the new study, welcoming the OFT’s realisation that the issue of charges is a complex one.

However, the BBA says that it “continues to believe that the fees are legal”.

Tags: Law Crime, local bureaux, Fair Trading, organisations, bank, british bankers association, OFT's realisation, tony herbert

MP claims that banks are too laid back about ID theft

A Tory Party MP has claimed that banks in the UK are far too laid back when it comes to the problems of identity theft – a problem that is growing in the UK and has become a major concern in many areas. Read more

Tags: id theft, identity fraud, Tory Party MP, access, Crimes, identity

Calls for financial education receive support

Calls from the British Bankers’ Association (BBA) for improved financial education in the UK’s schools are receiving widespread support.

The BBA claims that by educating youngsters in personal finances, they are more likely to be able to manage their money in later life.

This in turn will improve the nation’s financial capability and, hopefully, means that fewer Brits will find themselves in debt due to poor management of credit cards and other types of loans
in the future.

“We believe the best way to help people make sound decisions about what to do with their money depends on education. This should start young,” said Angela Knight, chief executive of the BBA.

“Until teachers can no longer choose between teaching financial literacy or not and whilst it remains un-assessed, it is hard to see how we can move from excellent pilot schemes to a complete roll-out across every UK school.”

The BBA’s stance on this issue has been well received by many industry figures who back the idea that personal finance should become a core part of the national curriculum.

“We are pleased that the BBA recognise the importance of personal finance becoming part of the core curriculum in schools and the fact that this should be examinable,” remarked Phil Hall, spokesman for financial education charity ifs School of Finance.

Even if you have already left school it is not too late to learn about money and how you can improve your financial situation.

Tags: literacy, core, turn, pilot, debt

BBA supports new dormant account legislation

The banking industry is supporting a government consultation paper on unclaimed assets which is issued today (March 20th).

Officials at the British Bankers’ Association (BBA) have thrown their support behind the proposed approach of dealing with unclaimed assets.

Essentially the proposed legislation will allow unclaimed monies to be invested into community causes while still being reclaimable by the owner after it has been used.

Money can only be used for other purposes once an account has lain dormant for 15 years and the original bank or building society will remain in control of any further customer relations regarding the account.

The purpose of this is to ensure that if the customer does try to claim his or her money back, it will be as easy a process as possible.

“All along our priority has been the protection of the right of customers to reclaim their monies at any time,” commented the BBA’s chief executive Angela Knight.

“A key element of the approach proposed within the consultation paper therefore is that even after the transfer of their ‘unclaimed assets’ individuals will retain the right to reclaim their monies via their bank or building society as at present.”

It may be worth checking to see if you have a dormant account which you have forgotten about and may contain a nice financial surprise.

Tags: business, purpose, british bankers association, bank, unclaimed monies, customer, owner, consultation

Happy birthday Banking Code

Today (March 16th) marks the 15th anniversary of the UK Banking Code.

The code is voluntary but sets out the standards for good banking practice which financial institutions should use as guidelines when dealing with customers.

Once a financial institution has subscribed to the code its compliance with what is set out in it is monitored by the Banking Code Standards Board and the code itself is monitored by regulators and consumer groups to ensure that it is up to date and fair.

This regulation, says the British Bankers’ Association (BBA), is what makes the code so strong.

“Whether they’re saving or borrowing, customers deserve a fair, transparent and responsible service,” said Angela Knight from the BBA.

“As one of the three trade associations sponsoring the Banking Code we are proud to be celebrating its 15th birthday.

“The members of our three trade associations include banks, building societies and credit card issuers so we see the issues that are affecting our customers and we see how the industry responds. The Banking Code gives us a way of setting real obligations and real benefits for customers,” she added.

The code, which is jointly owned by the BBA, the Building Societies Association and Apacs, the UK payments association, is formally reviewed every three years.

Tags: anniversary, british bankers association, investment, payments association, finance, date, Economy of the United Kingdom

2006 credit card borrowing down

Credit card borrowing fell in December 2006, according to updated figures released by the British Bankers’ Association (BBA).

Following the release of figures from the Major British Banking Groups earlier this month, BBA has gathered more information,

This new data shows that credit card borrowing fell by £0.3 billion in December, with the overall annual figure rising by just two per cent.

“The annual growth in consumer credit, at only two per cent, is low by historical comparison and, although strong Christmas sales have been reported, our December figures suggest that spending was not fuelled by more borrowing on credit cards,” said David Dooks from BBA.

Mortgage lending in December fell in comparison to November, but even this figure was a seven per cent increase on the same month in 2005.

In total, mortgage lending reached £18.1 billion, with 123,518 mortgages being approved.

The average amount lent for the purpose of buying a home soared in comparison to December 2005, with the average amount being £146,400, nine per cent more than the year before.

“The final quarter of last year, despite seasonally lower activity in December, showed the mortgage market to be stronger than at the same time a year earlier and lending still growing significantly at a time of rising interest rates,” added Mr Dooks.

Tags: activity, information, quarter, consumer credit, interest, Association