August 28, 2007

Gloomy outlook for debtors

by Kay Murchie
The current lack of money in the debt markets is likely to cause a sudden increase in the amount of people in the UK who are denied mortgages, loans and credits. The shortage of money is caused by the crisis in the US sub-prime mortgage market. Last year, 7 million UK consumers were denied credit and this figure is expected to reach 8.6 million ...

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Rural property premium revealed

by Gill Montia
Halifax and Royal Bank of Scotland have been taking a look at the premium paid by those who want to live in a rural location. Recent house price inflation has increased the average cost of a rural property to £246,104, which is £30,000 higher than would be paid in an urban environment. According to the survey, Chiltern in Buckinghamshire is the most expensive rural ...

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Northern Rock raises sub-prime rates

by Gill Montia
Northern Rock, the fast-growing mortgage lender, is to raise its sub-prime mortgage interest rates, from August 29th. The lender is increasing the rates on products aimed at those with poor credit histories and those with low or irregular earnings, by 1.25%. Northern Rock's core mortgage range will not be affected by the review, which has been prompted by the crisis in the US ...

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Interest only mortgages increase

by Gill Montia
The Council of Mortgage Lenders (CML) has exposed a growing trend in its June data, which shows that a record number of first-time buyers opted to make a start on the property ladder by taking out an interest-only mortgage. According to the CML's figures, 29% of first-timers buyers opted for this method of securing a home. However, only 8% of this group of borrowers advised ...

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August 27, 2007

Inflation set to surge on food prices

by Brian Turner
A combination of falling supply and rising demand for basic food produce is set to bring serious inflationary pressures to central banks later this year. According to Brian Turner, executive editor of UK personal financial news site, Finance Markets (http://www.financemarkets.co.uk), the result is going to be a dangerous increase in inflation this Autumn, and threatens consumer spending for the Christmas season. Extreme weather around the world has already cut harvest predictions among ...

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European markets mixed

by Elaine Frei
European markets were mixed on Monday. The FTSE Eurofirst 300 added 0.33 percent to 1,514.43, while in Paris the CAC-40 gained 0.38 percent to 5,590.54. On the other hand, Madrid’s IBEX fell 0.2 percent to 14,305.5 while the Dax dropped 0.28 percent to 7,485.99 in Frankfurt. London’s markets were closed for a public holiday. Equities markets in the Asia-Pacific region were up ...

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August 24, 2007

Dax in slight decline among European gains

by Elaine Frei
European markets were mostly higher, but the Dax dropped 0.06 percent to 7,507.27 in Frankfurt. The FTSE Eurofirst 300 added 0.34 percent. In Madrid, IBEX was up 0.29 percent to 14,334.4 while the Paris CAC-40 gained 0.83 percent to 5,569.38. London’s markets were higher. The FTSE 100 added 0.37 percent to 6,220.1, while the FTSE 250 ...

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Bonus reductions may slow London prices

by Gill Montia
Whilst the increase in London house prices appears to have been little affected by the five rises in the base rate in the past year, some property experts are now predicting a slow-down in the market. In the past, City bonuses have fuelled property inflation in the capital but there can be little doubt that the recent turmoil in the stock ...

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August 23, 2007

Subprime Credit Bubble Yet to Burst

by Brian Turner
While politicians and inside analysts are attempting to put a brave face on the current turmoil on the financial markets, commentators are likening the current subprime mortgage crisis to a pyramid scheme. In a recent CNN interview, Nouriel Roubini pointed out that current Federal Reserve estimates of the problem may be extraordinarily undervalued at $100 billion. Instead, he points out that minority ...

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Sensex declines amid Asia-Pacific gains

by Elaine Frei
Most equities markets in the Asia-Pacific region were up Thursday. The Shanghai Composite added 1.05 percent to 5,032.49 to rise above the 5,000 level for the first time, while the Straits Times index gained 1.49 percent to 3,370.91 in Singapore. In South Korea, the Kospi index was up 2.29 percent to 1,799.72. The Sydney Ordinaries added 2.54 percent to ...

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Hips stumble on local searches

by Gill Montia
Hope Information Packs (Hips) are at the centre of more controversy because some mortgage lenders are unwilling to rely on the local authority searches contained in the packs. Leading lenders, including HSBC and Barclays, are insisting that those buying a property should obtain searches, which include information on drainage and building consents, through their solicitor. In practical terms this means that large numbers ...

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Decline in July mortgages

by Gill Montia
AWD Moneyextra, the price comparison website, recorded a decrease in the value of mortgages completed by it customers, in July. The figure for the month stood at £151,488.09, as compared with £166,732.43 in May, a record high for Moneyextra. The most popular lender in July was the Halifax, the UK's biggest provider of mortgages. Experts at Moneyextra believe that the July figures reflect the impact of ...

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August 22, 2007

Tokyo bucks Asia-Pacific gains trend

by Elaine Frei
Most equities markets in the Asia-Pacific region were higher on Wednesday. In Taiwan the Taiex index was up 0.17 percent to 8,493.46. Australia’s S&P/ASX200 gained 0.26 percent to 6,005, while the Sydney Ordinaries added 0.31 percent to 5,997.4. The Shanghai Composite was 0.5 percent higher to 4,980.08, while in South Korea the Kospi index was up 1.34 percent to ...

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Tax credits overpayment

by Brian Turner
When I first set up in business a few years ago, I had no idea what my annual income would be. Tax Credits were still relatively new, but they wouldn't take an estimate of my income. And I couldn't give an exact income figure until my accounts were finished at the end of the tax year. Which meant being able to provide an income figure that the ...

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Hips evasion strategies unlikely to profit vendors

by Gill Montia
This August's introduction of Home Information Packs (Hips) as mandatory for anyone selling a four-bedroom home has prompted a reaction amongst vendors seeking to find a loophole in the system. According to research by Abbey Mortgages, 4.5 million people living in four-bedroom homes would be prepared to market their property as having three bedrooms rather than pay the £400 to £600 ...

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UK borrowers count cost of US crisis

by Gill Montia
The crisis in the US sub-prime mortgage market, which sent stock markets into turmoil last week, is also having its effect on prospective UK borrowers with poor credit histories. Since the severity of the US crisis has become known, at least seven UK sub-prime lenders have raised their interest rates, or withdrawn their mortgage products. Sub-prime specialist, Victoria Mortgages, withdrew its ...

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August 21, 2007

Asia-Pacific, European markets mixed

by Elaine Frei
Equities markets in the Asia-Pacific region were mixed on Tuesday. Taiwan’s Taiex index dropped 0.43 percent to 8,479.08, while the Jakarta Composite fell 2.38 percent to 1,993.01, and the Straits Times index was down 2.82 percent to 3,228.66 in Singapore. In India, the Sensex fell 3.04 percent to 13,989.11. Gainers included South Korea’s Kospi index, which added 0.28 percent to ...

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HBOS resistant on SAMs compensation

by Brian Turner
HBOS, which comprises the Bank of Scotland and Halifax, is reportedly resisting implementing any rescue packages for those who took out Shared Appreciation Mortgages (SAMs). SAMs were interest-free loans secured against the future equity growth of the property purchased, with the bank able to claim as much as 75% of the property value. The aim was to provide accessible lending to people, who would ...

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July increases surprise mortgage lenders

by Gill Montia
The Council of Mortgage Lenders (CML) has reported that mortgage lending is still rising at a robust rate, despite five interest rate rises in the past year. The Council's figures for July show that lending reached £34.4 billion, a record amount for the month, in any year. Although new lending was down slightly from that in June, the figure is still 13% higher ...

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Dip in London house prices

by Gill Montia
Experts at Rightmove, the property sales website, have reported a decrease in the asking prices for London property, for the first time in a year. The August fall has been slight, at only 0.1%, but has to be seen in the context of a 2% average monthly rise in London house prices over the past 12 months. The average asking price of a home ...

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