Housing aid will raise prices, lenders warn


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Housing aid will raise prices, lenders warn

Housing aid will raise prices, lenders warn
George Osborne’s policy of kick starting the housing market with subsidised mortgages may inflate prices to pre-crash peaks and hit the potential first-time buyers it is designed to help, according to the Intermediary Mortgage Lenders Association. In the latest warning about the impact of the Help to Buy programme, lenders said property prices could rise by 11% by the end of 2016, with artificially inflated valuations the biggest threat to its success. House prices in London are above their 2007 peak, according to the Nationwide building society, but taken across the entire country they remain 9% lower, as IMLA warned that under the scheme the average UK home would cost £180,256 by the end of 2016.
The Guardian, p. 21
Also appeared in : City AM London, p.5

Why your Facebook friends could soon determine if you can get a mortgage
The Facebook and Twitter accounts of would-be borrowers could be analysed by banks to decide whether they should approve a loan or mortgage.
The Daily Telegraph, p. 14

Shares in RBS on the slide as Tyrie renews call for bank to be split
Shares in Royal Bank of Scotland fell 4 per cent yesterday after the chairman of the Parliamentary Commission on Banking Standards again called for the taxpayer-owned bank to be split up.
The Independent, p. 57
Also appeared in : Evening Standard London, p.36, The Daily Telegraph Business, p.4

Regulator warns of the risks of mobile banking
The Financial Conduct Authority has warned that mobile banking faces a number of problems such as fraud, malicious software, IT meltdowns and difficult interfaces.
The Guardian, p. 26

Silverstone’s cash injection
LDC, owned by Lloyds Banking Group, is in advanced talks over spending “millions” on backing a management buy-out of Silverstone Circuits, which promotes and hosts the British Grand Prix.
The Daily Telegraph Business, p. 4
Also appeared in : City AM London, p.6

Nationwide at odds with Bank over lending
Nationwide is embroiled in a row with the Bank of England. It is reported to have delayed launching a loan service for small businesses until 2016, in part because of new rules from the Bank forcing all lenders to hold capital equivalent to at least 3 per cent of total assets.
The Times, p. 41
Also appeared in : The Daily Telegraph Business, p.4, Financial Times Companies and Markets, p.13, The Guardian, p.21

Be wary of cold calls, warns watchdog
Financial Fraud Action UK has warned that a quarter of the population is at risk of being targeted by a new “vishing” scam and phoned by fraudsters posing as bank or police asking them to hand over personal details.
The Daily Telegraph, p. 12
Also appeared in : The Times, p.16

Support services
Four banks have hit back at the Competition Commission’s plans to make blue-chip companies review their auditors every five years as part of a shake-up of the accountancy market.
The Times, p. 36

The above articles appeared on 28/08/13 reproduced with the kind permission of Kantar Media UK. All rights reserved.

Charterbridge Private Financial Planning, Independent Financial Advice, Thornbury, Bristol.