December 17, 2007

Aggressive tactics being used by banks

by Kay Murchie
The Citizens Advice Bureau (CAB) has said it is receiving several complaints about growing 'aggressive tactics' being used by banks and that they are preying on those in debt. The BBC has discovered that consumers who have an agreed debt repayment plan with a debt advice charity are being pressured to take out expensive loans in an attempt to ease ...

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Reshuffle at Advent

by Kay Murchie
Advent, the specialist Lloyd’s insurer, has announced the reshuffle of its underwriting team. Furthermore, Richard Finn has been appointed as the firm's new non-executive director of Advent underwriting Ltd. Mr Finn has extensive experience of business underwritten by Advent Syndicate 780. This knowledge will contribute to the board's supervision of the Lloyd’s operations. Advent has also announced the 2008 business plan for Syndicate 780 which ...

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Expansion programme for Abbey National

by Kay Murchie
Abbey National, owned by the Spanish Bank Santander, has revealed plans to open a further 300 branches nationwide over the next 5 years. This will increase its 700-strong branch network to 1,000. The news follows complaints about Abbey's customer service procedures, some of which involve dealing with overseas call centres. The announcement also follows expansion plans revealed by High Street names. HBOS, ...

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Goldman Sachs employed to assist with rescue of Northern Rock

by Kay Murchie
According to a UK Treasury spokesman, Goldman Sachs, the US investment bank, has been called in to use its global reach to help put in place a financing package to rescue crisis-torn Northern Rock. The spokesman said the package would be available to any buyer and that the 2 main bidders, Virgin Group and Olivant, would be treated ...

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Hidden costs in “free” sole-agency Hips

by Gill Montia
Following the full roll-out of Home Information Packs (Hips) last week, the BBC's Money Box programme has pointed out that house sellers who sign up for a free or discounted Hip with their estate agent could be liable for a charge, if they withdraw their property from the market or change agent. Estate agents maintain that the charges, which are frequently ...

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December 14, 2007

European markets gain as most global markets decline

by Elaine Frei
European markets saw gains on Friday after Thursday’s significant declines. The Eurofirst 300 added 0.41 percent to 1,516.07. The Dax was up 0.25 percent to 7,948.36 while the Paris CAC-40 was 0.26 percent higher to 5,605.36 and the IBEX gained 0.49 percent to 15,575.7 in Madrid. In London the FTSE 100 was up 0.52 percent to ...

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Hips remain unpopular as full roll-out arrives

by Gill Montia
Home Information Packs (Hips) are now required for all properties for sale in England and Wales. Hip requirement has been introduced in tranches and from today includes one and two-bedroom properties. The controversial packs, which cost between £300 and £500, include a sale statement, standard local searches, evidence of title and an energy performance certificate. While they are aimed at speeding up the ...

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December 13, 2007

Europe’s markets in significant declines

by Elaine Frei
Europe’s equities markets declined substantially Thursday, with no gainers at all on one index and only two on another. The pan-European FTSE Eurofirst 300 was down 2.37 percent to 1,509.82. In Frankfurt, the Dax was 1.83 percent lower as it lost almost 150 points to 7,928.31. Madrid’s IBEX fell 2.27 percent with a loss of 360 points to 15,499.2. ...

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NAEA forecast sees prices house holding steady

by Gill Montia
The National Association of Estate Agents (NAEA) is bucking the trend with a less than gloomy forecast for the UK housing market. The association believes that prices will hold steady in 2008 because basic supply and demand factors will dominate the market. However, the NAEA acknowledges that the movement of the market is even more difficult to predict than usual, and points ...

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House prices fall for fourth consecutive month

by Gill Montia
Latest figures from the Royal Institution of Chartered Surveyors (Rics) show that UK house prices have fallen for the fourth month in a row. In its November survey, 41% of Rics members reported a drop in prices over the previous three months. This compares with 23% of members who reported that prices were still rising. Prices fell across England, Wales and Northern ...

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December 12, 2007

European markets mixed on day

by Elaine Frei
In Europe, markets were mixed but mostly higher on Wednesday. The pan-European FTSE Eurofirst 300 added 0.38 percent to 1,546.34, while the CAC-40 gained 0.32 percent to 5,743.32 and the Dax was up 0.83 percent to 8,076.12. Madrid’s IBEX, however, dropped 0.19 percent to 15,860. London’s equities markets were mixed as well. The FTSE 100 added 0.35 percent ...

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Commercial property values could fall 25%

by Gill Montia
Predictions of a fall in UK property prices generally focus on the residential market but news that Aberdeen Asset Management is planning the launch a British property fund gives warning of difficult times ahead for the commercial market. Those behind the new venture expect the UK commercial property market to "bottom-out" from the middle of 2008 and analysts are forecasting that UK ...

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CAB attacks sub-prime lenders

by Gill Montia
The Citizens Advice Bureau (CAB) has criticised UK sub-prime lenders, accusing the sector of knowingly providing mortgages that borrowers cannot afford to repay. The charity goes on to describe lenders as "aggressive" with borrowers who fall behind with their repayments. In a report entitled Set Up To Fail the CAB maintains that: "Dubious advice from brokers, irresponsible lending decisions and aggressive arrears management ...

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CML urges lender forbearance and Government action

by Gill Montia
The Council of Mortgage Lenders (CML) is urging banks and building societies to be patient with borrowers who will be coming to the end of their fixed-rate mortgages in the coming year. The Council has joined David Cameron, the leader of the Conservative Party, in calling on the Government to acknowledge the fact that many of these homeowners will be facing ...

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December 11, 2007

New York markets decline after rate cut

by Elaine Frei
Wall Street saw declines in mid-afternoon trade after the Federal Reserve handed down its key funds rate by a quarter point to 4.25 percent. The markets fell, according to at least one analysts, because investors were disappointed that the rate cut wasn’t bigger. Shortly after the decision was announced, the Dow Jones Industrial Average fell 1.53 percent to ...

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Mortgage interest payments rise to 20.6% of incomes

by Gill Montia
The Council of Mortgage Lenders (CML) has published October data on mortgage affordability that reflects both higher interest rates and rising house prices. During the month, mortgage interest payments accounted for 20.6% of first-time buyers' monthly incomes. The figure was up from 20.4% in September, which was its highest level since 1991. For home-movers mortgage interest payments increased to 17.6% ...

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Government house price data leaves room for optimism

by Gill Montia
Latest figures the Department for Communities show a 0.1% increase in the average price of a UK home, in October. The data shows the average price of a flat decreasing by 0.7% while terraced houses fell in value by 0.4%, and detached homes saw a 0.8% rise. The figures, which are published over a month later than many other house ...

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December 10, 2007

European equities see gains on session

by Elaine Frei
European equities markets saw gains on Monday. The FTSE Eurofirst 300 added 0.6 percent to 1,547.8. In Madrid, the IBEX gained 0.08 percent to 15,832.7. Frankfurt’s Dax was up 0.49 percent to 8,033.36 while the Paris CAC-40 was 0.56 percent higher to 5,750.92. Equities markets were mixed in London, however, with the FTSE 100 up 0.16 percent ...

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Interest rate cuts may not boost property market

by Gill Montia
Mortgage borrowers will have felt relief at last week's cut in the Bank of England's base rate, to 5.5%, which as been followed by forecasts that interest rates are now set to continue falling, possibly decreasing to 4% or below by 2009. However, the reasoning behind the predicted slide in borrowing costs casts a shadow because it is ...

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December 7, 2007

Asia-Pacific markets see mixed session

by Elaine Frei
Asia-Pacific equities markets were mixed on Friday. Among gainers, the Straits Times index added 0.15 percent to 3,557.95 in Singapore. Taiwan’s Taiex index was up 0.32 percent to 8,722.38. In Australia, the Sydney Ordinaries gained 0.8 percent to 6,714 while the S&P/ASX200 was 0.82 percent higher to 6,654.7. The Sensex added 0.86 percent to 19,966 and the Shanghai ...

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