Lending to landlords and first-timers soars

Charterbridge

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Lending to landlords and first-timers soars

Lending to landlords and first-timers soars
New Bank of England data published yesterday shows that mortgage lending to landlords is growing as fast as lending to first-time buyers. Overall lending for the three months from April to June was 23% higher than for the previous three months – a rate of growth, according to the Bank, which was “the highest in any year since the series began”. Against the same period in 2012, total lending for the quarter – excluding remortgaging – was up 18%.
The Daily Telegraph Business, p. 1
Also appeared in : Financial Times, p.3, Independent i, p.42

Mortgage rates drop to record low but borrowers warned they will not last long
The Bank of England announced yesterday that the average mortgage interest rate fell to 3.43% in the three months to June, down from 3.47% the previous quarter. Meanwhile, the average rate for new mortgages fell from 3.65% to 3.47%. The total value of new mortgages advanced in the second quarter of the year rose by 23% on the first three months of the year to £41.6bn. The value of loans given to first-time buyers has risen by 31% year on year, reaching £8bn in the second quarter.
The Daily Telegraph, p. 2

Banks blasted by watchdog on PPI claim failure
Britain’s biggest banks face more fines and punishments for failing to deal with payment protection insurance (PPI) claims effectively, Financial Conduct Authority head Martin Wheatley told MPs yesterday.
City AM London, p. 11
Also appeared in : Evening Standard London, p.47, Independent i, p.42, Independent i, p.42

Lloyds sale set for green light from regulator
Regulators are set to rule that Lloyds’ proposals to sell hundreds of branches will boost competition to an acceptable degree, accelerating the chances of an imminent sale of the part-state-owned bank. It is thought the Office of Fair Trading (OFT), which is examining how disposals will affect competition in the banking sector, will approve of plans by Lloyds to dispose of hundreds of branches, which are going to form the newly minted bank TSB.
City AM London, p. 10
Also appeared in : The Daily Telegraph Business, p.1

Here’s your change: notes are going plastic
Plastic notes will replace paper notes from 2016, in a bid to make notes more durable and cleaner. The Bank of England said it began experimenting with substrates more than three years ago, and will have its first public consultation on the new notes this week. Using polymer is expected to save the bank £100 million over 10 years as fewer notes will need to be replaced.
The Guardian, p. 3
Also appeared in : Financial Times, p.2, Independent i, p.2, The Daily Telegraph, p.11, The Daily Telegraph Business, p.3, The Independent, p.55, The Independent, p.25, The Times, p.23

Bank reform plans could backfire, warns ABI
The Association of British Insurers has written to senior politicians and regulators attacking plans aimed at reforming banking, claiming that they are too prescriptive and risk making top executives “unable or unwilling” to do their jobs.
The Times, p. 42

Top ECB official calls for more transparency
Publishing monthly minutes of the European Central Bank’s (ECB) meetings would increase transparency and help make policy decisions clear to markets, top official Jorg Asmussen stated yesterday. The publications also give more information on how policy could change in coming months, based in policymakers’ view of the economy and financial markets.
City AM London, p. 14

BoE ‘needs secret alert path to ailing lenders’
The Financial Stability Board has said that the Bank of England needs a secret warning system to tell a bank it is about to go bust.
The Daily Telegraph Business, p. 5

Bank of America relegated from Dow
Bank of America is being pushed out of the Dow Jones Industrial Average in favour of Goldman Sachs under the index’s biggest shake-up in nearly a decade.
The Daily Telegraph Business, p. 5

FCA joins global rate rigging investigation
The Financial Conduct Authority has confirmed for the first time that it has joined an international inquiry into alleged rigging of the multi-trillion dollar trade in interest rate derivatives.
The Daily Telegraph Business, p. 3

The above articles appeared on 11/09/13 reproduced with the kind permission of Kantar Media UK. All rights reserved.

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