Now five-year fixes fall to below 2.5%

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Now five-year fixes fall to below 2.5%

Now five-year fixes fall to below 2.5 %
Borrowers who want to lock into their home loan for five years can choose from some of the cheapest rates ever to hit the market. Last week, Yorkshire Bank launched a five-year, fixed-rate mortgage at 2.49pc. However, it is only for borrowers with a 40pc deposit and comes with a £1,999 fee. Monthly payments are £672 on a £150,000 loan and the total cost is £42,319. HSBC and First Direct have launched identical rates ? although with the First Direct mortgage you only need a 35 pc deposit.
Daily Mail, p. 46

Osborne under scrutiny over crisis at Co-op
The Chancellor George Osborne is to face awkward questions about the decision to approve the botched sale of 632 Lloyds branches to the Co-op. Sources close to the negotiations insist the Co-op’s offer was the only credible option on the table. But there are nagging suspicions in the City that the mutual’s bid may have been promoted by the Coalition. Yesterday the spotlight fell on the Treasury’s role in the debacle as it emerged that UKFI, the body set up to manage taxpayers’ stake in bailed out banks, was frozen out of the talks
Daily Mail, p. 66
Also appeared in : Daily Mail, p.65, City AM London, p.26, City AM London, p.12

German GDP to hit brakes
Growth in Germany will amount to just 0. 5 per cent this year, according to a downgraded forecast by Barclays.
City AM London, p. 20

European Central Bank plans to review asset quality next spring
Banks across Europe will have to have their assets analysed before the European Central Bank (ECB) starts supervising in the first quarter of 2014, according to ECB executive board member Joerg Asmussen.
City AM London, p. 20

Junk bond issuances soar to record high as demand surges
Junk bond issuances have soared to a record high this year, as a surge in demand and the evaporation of bank lending sees companies tap investors in greater numbers, writes Michael Bow. A mixture of low yields on government bonds and a pullback in corporate lending from banks due to regulations have helped drive up demand.
City AM London, p. 18

New boss to clean up the Bank of Cyprus
The Bank of Cyprus will be run by Greek banker Christos Sorotos from the end of this month, the central bank announced yesterday.
City AM London, p. 20

Bankia’s shares dip on its €11bn recapitalisation
Troubled Spanish lender Bankia received €11bn (£9.4bn) in bailout funds from Europe yesterday in the latest part of the plan to get the bank back on its feet.
City AM London, p. 8

Dow hits fresh high on central bank promises
US stocks have risen, with the Dow closing at yet another record high, in the wake of Wall Street’s first three-day losing streak of the year.
City AM London, p. 24

Call for ‘sceptical’ accountants as seriously flawed audits rise
The Financial Reporting Council claims that the number of seriously flawed audits of big companies jumped last year, in a finding that will add to the pressure on the accountancy profession.
The Times, p. 39

Finally, help through the closed account minefield
It has been announced that Barclays, Santander and Newcastle Building Society are about to make it easier for around two million savers to find out what rate they earn. In a landmark move these three big names will each move hundreds of thousands of savers, all paying different rates and with separate issue numbers or account names, into one simple deal. It will allow customers to figure out what rate they are on without having to plough through dozens of pages on a website. Barclays will write to more than one million customers in seven different accounts telling them they will be moved to a new deal.
Daily Mail, p. 47

Lloyds’ bond sale
It has emerged that Lloyds Banking Group is planning to shift more than £5bn of US mortgage bonds, the financial instruments considered by many economists to have been the trigger for the financial crisis. The state-backed bank inherited what are widely regarded as toxic assets when it saved Halifax Bank of Scotland.
Daily Mail, p. 65

French banker hits out at finance tax
Yesterday France’s top central banker launched a stinging attack on European plans for a Robin Hood Tax on finance. Christian Noyer, governor of the Bank of France and a senior official at the European Central Bank, said the proposed financial transactions tax could ‘destroy’ business and cost jobs.
Daily Mail, p. 65

Lloyds offloads bonds
Lloyds is auctioning USD8.7bn worth of US mortgage bonds in an attempt to raise capital by selling non-core assets.
The Daily Telegraph Business, p. 1

Raiffeisen Bank upbeat despite fall in net profits
Raiffeisen Bank International gave an encouraging assessment of its prospects for 2013.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 16

Bank of Ireland launches bond deal
BNP Paribas has been chosen to handle Bank of Ireland’s first ever senior unsecured bond.
The Daily Telegraph Business, p. 8

The above articles appeared on 29/05/13 reproduced with the kind permission of Kantar Media UK. All rights reserved.

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