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: month, growth, economist, June, new property purchases, value, british bankers association

Recession in UK could almost be over

Officials from the National Institute of Economic and Social Research have recently stated that the recession in the UK has almost completed its course, and could soon be over despite concerns from other industry groups and officials that it could last for another one to two years. Read more

Tags: growth, encouraging figures, recession, recessions, National Institute of Economic, profile, private sector

Is chancellor too optimistic about recovery of the nation?

Most people in the UK are now well aware that the UK is going through a very rocky period, with the global financial crisis still taking effect and the recession further impacting on the economy. Read more

Tags: credit crunch, uk, opposition party members, chancellor, chancellor of the exchequer, couple

Recession could lead to rise in burglaries

A rise in burglaries over the Christmas and New Year period is something that concerns most of us. Many burglars decide to step up the pace over the festive season because this is the time when people tend to have more expensive items in their homes, such as gifts purchased for others or gifts received from others. It is also a time when many people are out of their homes visiting relatives and friends or socialising, giving thieves more opportunity to carry out burglaries. Read more

Tags: insurance coverage, opportunity, growth, recession, recent reports, phone call, burglary, budget

Burglary levels set to rise

According to recent predictions the number of burglaries taking place across the UK is set to rise as a result of the economic downturn and reports show that burglary is set to become a growth industry in the current climate. Officials have said that during the last recession in the late 1980s and early 1990s the number of domestic burglaries increased by around a third, and figures suggest that by the end of this year the number of burglaries in the UK may have risen by 7 percent. Read more

Tags: christmas, valuable items, Financial services, growth, call, comparison website, number, phone call

British property market is in “danger”

The British property market is in danger zone which is set to continue beyond 2008 and into subsequent years, claims the Daily Telegraph.

Findings from the Daily Telegraph and Lombard Street Research Housing Affordability Index has revealed that house prices can no longer be classed as affordable, due to the combination of inflation and increasing debt costs.

Speaking to the Daily Telegraph, Diana Choyleva, the director at Lombard Street Research, said: “I would say that around about now house prices are in unaffordable territory – this is the danger zone for the market.

“It is still too early to say yet whether what happens next will be as bad, or perhaps even worse, than the early 1990s crisis,” she continued.

The index suggests that house prices are currently at their most overvalued since 1991 when many homes were repossessed.

Meanwhile, new research from Your Mortgage magazine has revealed that house price growth in inner London should hit 4.6 per cent with Greater London seeing 4.3 per cent growth.

Tags: crisis, Housing Affordability Index, Economic history, growth, Affordability, the Daily Telegraph, cent, housing

Consumers need examples of what they will have to pay back

Banks and credit card companies should provide a “practical example” of what a consumer needs to pay back, claims a debt counselling service.

Thomas Charles & Co has said companies should follow the examples set by mortgage lenders and unsecured loan lenders and show consumers what they will be paying back over a certain period of time.

“I think banks and credit card providers should be encouraged to do that off their own back. I think that if they don’t, the regulators will probably be just in asking them to do so,” said director James Falla.

He added that it would be a good idea to help the consumer as “interest rates are very confusing”.

According to Credit Action’s latest assessment of personal debt, the total UK personal debt at the end of October 2007 stood at £1,391 billion.

The growth rate increased to 9.7 per cent for the previous 12 months which equates to an increase of £122 billion.

Tags: October, personal debt, Credit card, loan lenders, growth, Charles, loan, cent

Bank of England comes under fire for failure to reduce interest rates

Following its most recent decision to keep interest rates on hold for a fourth consecutive month the Bank of England has come under fire from a number of agencies for failing the economy by making the decision to keep interest rates unchanged at 5.75%.

Some say that the Bank of England is putting the stability of the UK’s economy at risk by failing to cut interest rates, and both lender and brokers had been hoping for an interest rate cut of at least 0.25% for November.

A broker from firm John Charcol stated: “A cut of 0.25% today would at least have pushed three-month Libor back down to about 6%. It would also have started to redress the Bank of England’s policy mistakes, as outlined in last month’s Financial Stability Report, in dealing with the credit crunch.These are all good reasons why the MPC should have cut today. Their failure to do so means that today’s opportunity to mitigate the potentially serious problems building up in the banking system has been lost.”

A property investment official added: “It’s about time that the Bank of England’s MPC saw sense and realised that the clear and present danger to the UK economy from the continuing effects of the credit crunch is more important than the less clear possibility of future pressures upwards on inflation.”

One economic adviser added: “Credit conditions have become tighter since August, both globally and in the UK. The dangers to the economy have worsened and businesses require easier credit conditions without undue delay, to avoid a nasty reversal. We urge the MPC to announce a small interest rate cut in December.”

Tom Smith
13th November 2007

Tags: rate, Mortgages, growth, bank, businesses, Loans

Hedge your bets with Post Office savings bond

A new five-year savings bond has been launched this week, offering savers a risk-free route to high returns.

The Post Office has announced the launch of the fifth issue of its Fiveyear Saver bond, which permits savers to benefit from gains in the stock market without taking on the risk of losing their money.

The bond delivers 7.5 per cent gross interest on half of the sum deposited, plus 50 per cent of any rise in the FTSE 100 index on the rest it over the course of the five year period. People’s savings are thereby insulated from any risk of loss.

Post Office director of savings and investments Richard Norman said: “Although many investors are seeking to benefit from gains in the stock market, they also want a guarantee that they won’t lose their money.

“Post Office Fiveyear Saver is a secure investment which gives a guaranteed return, while still offering the growth potential of the FTSE-100 Index. There is no risk of losing your original deposit and you can invest from just £500.”

The maximum investment is £1 million, and the offer period is open until January 11 next year.

Tags: Fiveyear, Fiveyear Saver bond, offer, Post Office director, route, Hedge, growth, risk

Downturn for house price growth

House price growth finally changed direction for the first time since October 2005, as property prices began to fall in many areas of the country, the latest housing market survey from the Royal Institution of Chartered Surveyors (Rics) has revealed.

With higher interest rates and market volatility, demand continued to weaken throughout August, particularly in the West Midlands, the north-west and East Anglia.

During the month, 1.8 per cent more chartered surveyors reported falls rather than rises in house prices, although London has yet to be affected by the credit market situation and continues to show the strongest growth in England.

Ian Perry, a spokesman for Rics, said: “Potential house buyers have become far more cautious as they wait and see what affect interest rate rises will have on household finances. Affordability is at its most stretched in over a decade and many will worry that rising mortgage repayments will prove a step too far.

“The market will soften further, going into the autumn, reducing some impetus from those that have been chasing a rapidly moving target.”

According to a recent report from the National Association of Estate Agents, the introduction of Home Information Packs (Hip) for three-bedroom properties is likely to lead to a similar decline in the number of these properties on the market as that which was seen after the introduction of the four-bedroom Hip.

Tags: three-bedroom properties, house price, month, spokesman, interest, growth, Chartered Surveyors, home

Nationwide house price report shows slowdown

Nationwide house price report shows slowdown

Further evidence for a rapidly-cooling house price market comes today, with the release of the monthly report from lenders Nationwide.

Seasonally adjusted, house prices made a gain of 0.1 per cent for July – the slowest growth for over a year, and a negation of the gains from the last set of results in June.

The annual rate of inflation is also down, currently standing at 9.9 per cent: numbers had been in the double digits for the last three months.

Nationwide starkly stated that the “risk of monetary overkill” looms large over the housing market.

The lender also welcomed the government’s housing green paper, which proposes that more affordable homes be built; yet “as the recent flooding shows, the challenges ahead are substantial”, it adds.

Many analysts will be surprised by the results, with Reuters reporting that a 0.5 per cent gain and an annual reading of 10.6 per cent had been predicted.

Tags: Nationwide house price, Toronto, government, housing market, Real estate, growth

Foreign ATMs gain in popularity

The number of ATMs which can deal in foreign currency will grow, it was claimed today.

According to UK cash machine operator Link, a big cause of this growth will be the convenience of holidaymakers who want to withdraw the relevant cash before they jet off.

Traditionally only found in airports, Link predicts that foreign ATMs will move closer to the mainstream of British life, and will be found on the high street more and more.

Head of planning and development at Link Graham Mott said: “The theory is at the moment that, rather than the person waiting until they get to the airport to get their foreign currency as many people do, they’ll get their foreign currency beforehand, in the weeks leading up to the holiday. Therefore, putting them in the high street or supermarket would do well, as that’s where people are going on a regular basis anyway.”

He added that customers seem to “like the idea” of the expansion, though the company does not receive the exact statistics for customer uptake.

Due to most only having four cash cassettes, it is likely that the high street ATMs will only have the capacity to stock euros and US dollars in future. To Mr Mott, this would not be a problem, as these are the two most popular currencies.

Link’s comments follows Tesco’s recent decision to expand its foreign ATMs from four to 20.

Tags: airports, Link, stock euros, holidaymakers, Commerce

February increases saving mood

We all begin February with a good financial attitude, a desire to carry out sensible banking and a mood to save.

That is according to Legal & General which has published its Money Mood Survey for 2007.

In it, the firm tries to gauge the mood of the nation when it comes to saving and 2007 has proved to be the third year of growth.

According to Legal & General, 64 per cent of British adults were in the mood to save at the end of February.

This signals a rise of eight per cent compared to the same period in 2005. In addition, the mood to spend has fallen.

The study claims that 2007 saw the lowest mood to spend in February figures ever, with just 24 per cent of adults wanting to splash the cash.

“These latest figures show the Money Mood of the nation is firmly in save mode as we enter the Isa market this year,” remarked Claire Stacey, director of Legal & General.

“Money Mood also found that the percentage of households who said they have money to spend after paying bills and debt payments has not changed over the three years.

“That’s good news as it shows that the majority of households (58 per cent) are in a position to save rather than struggling to make ends meet,” she added.

This year’s Isa deadline is April 5th so if you are considering saving your money in a high-interest account you had better hurry.

Tags: addition, money, sensible banking, firm, growth, year, ISA, fallen.The study

More Brits banking online

Britain is becoming a nation of internet bankers, with new figures showing that we are becoming more comfortable with sorting out our finances online.

New research, carried out by Lloyds TSB, shows that over two thirds of us do the majority of our banking on the internet.

This is a huge leap when compared to 2005, when just 18 per cent of Britons said most of their banking was done online.

Despite the common perception that the internet is the plaything of the young and not well used by older people, Lloyds found that, when it comes to banking, the opposite is true.

A staggering 70 per cent of people over the age of 50 said that they prefer to do their banking online, while those aged between 18 and 25 are the least likely to manage their finances in this way.

“The growth of internet banking is phenomenal and this year is set to break records,” said Anita Hockin, head of internet at Lloyds.

“This popularity isn’t surprising given the convenience of banking online. It’s possible not only to check your balance, but also to pay bills, set up standing orders and direct debits and move money between accounts at the touch of a button.”

Lloyds’ research found that of the ten per cent of people that do not bank online, the main reason given was that they do not feel the need.

Tags: research, head, growth, Banking Services, majority, online, Business Finance, Technology Internet