Slump in home loans as market stagnates

Charterbridge

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Slump in home loans as market stagnates

Slump in home loans as market stagnates
The British Bankers’ Association has concluded that mortgage lending declined in February by the biggest monthly amount in more than 15 years, with £7.8bn of home loans agreed to and net lending by banks declining to £982m.
The Guardian, p. 25
Also appeared in : The Times, p.40

Up to 630,000 borrowers are stuck in negative equity as house prices stagnate
Up to 630,000 borrowers are mired in negative equity, new figures from the UK’s consumer finance watchdog has revealed. The estimates have been included in the Financial Conduct Authority’s latest risk report, published alongside the new regulator’s business plan for the coming year.
The Independent, p. 7
Also appeared in : Independent i, p.6

Darling fears subprime ‘ housing bubble’
Paul Smee, director-general of the Council of Mortgage Lenders, and Alistair Darling have expressed concerns that the package of mortgage guarantees announced last week could repeat mistakes of the US subprime crisis.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 2

Foreigners could cash in on state-aided home loans
Foreigners will probably qualify for state-subsidised mortgages announced in the Budget, it has emerged. Analysis of plans set out by George Osborne, the Chancellor, to make it cheaper for people to take out loans suggests that people from inside and outside the European Union can qualify.
The Daily Telegraph, p. 4

European mortgage deal flurry as investors chase higher yields
It is reported that bankers are working on at least three new European commercial mortgage-backed securities deals, looking to take advantage of fresh investor appetite for an asset class that was one of the hardest hit by the US subprime crisis.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 31

‘Bad bank’ repays government £4bn
The government was paid back £4bn in 2012 by the “bad bank” responsible for winding down the mortgage books of Northern Rock and Bradford & Bingley, 40 per cent more than the year before.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 2
Also appeared in : The Daily Telegraph Business, p.5, The Independent, p.51, The Daily Telegraph Business, p.2, The Independent, p.53

We’re ready to take on toxic RBS debts, says ‘bad bank’ chief
The government-controlled “bad bank” created to wind down Northern Rock and Bradford & Bingley could manage the toxic debt of Royal Bank of Scotland as well, according to Richard Banks, the chief executive of UK Asset Resolution Limited.
The Times, p. 44

Lloyds Bank paid 25 senior staff more than £1m
Lloyds Banking Group has confirmed that it paid 25 staff more than £1m while continuing a redundancy programme that will likely result in 45,000 job cuts and offering front-line staff below inflation pay rises.
The Guardian, p. 25
Also appeared in : Financial Times Companies and Markets, p.16, Independent i, p.40, International Herald Tribune, p.17, The Daily Telegraph Business, p.5, The Guardian, p.27, The Independent, p.51, The Independent, p.53, The Times, p.39

Fears for savers all over Europe in wake of Cyprus bailout
Bank accounts in other troubled eurozone countries could be raided next, Jeroen Dijsselbloem, the Dutch Finance Minister, suggested yesterday, as Cyprus was left counting the cost of its revised bailout,
The Times, p. 8
Also appeared in : The Daily Telegraph Business, p.1, Financial Times, p.1, The Daily Telegraph, p.1

President pledges ‘temporary’ curbs on withdrawals
Cyprus’ government said it would imposing “very temporary” capital controls to prevent a sudden capital outflow from its banks which will begin to reopen today.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 6

Cyprus deal pulls markets back from brink
Investor sentiment in European banks stopped short of panic yesterday, as a deal was done to restructure the troubled Cyprus financial system and another round of worries over a potential break-up of the eurozone was laid to rest.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 7
Also appeared in : Financial Times Companies and Markets, p.32, The Guardian, p.30-31, The Independent, p.2-3

Britain’s oldest asset manager makes break with tradition
Britain’s biggest asset management business, Schroders, has broken with tradition by announcing a £424m all-cash deal to buy smaller rival Cazenove Capital.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 20
Also appeared in : International Herald Tribune, p.16, The Independent, p.54, The Times, p.40

Banks to continue Libor participation
Banks’ participation in compiling the Libor benchmark interest rate at the centre of a fixing scandal will remain voluntary when new rules come into force.
Independent i, p. 42

City braced for double whammy on watchdog fees
Banks, building societies and insurers will have to pay two sets of fees to two new City watchdogs, the Financial Conduct Authority and the Prudential Regulation Authority, leading to concerns about even higher charges for advice and services.The Association of British Insurers, which represents the interests of more than 300 members, attacked the proposals.
The Times, p. 39
Also appeared in : Financial Times, p.2

Global financial crisis far from over, warns Bank of England governor
Bank of England governor Sir Mervyn King has spoken at an event at the London School of Economics, where he warned that fundamental changes are needed to the international system before confidence can be regained that the global financial crisis can be brought to an end. A fellow event speaker, Axel Weber, a former head of the German central bank, also claimed that “We are not out of the woods yet”, claiming that run up by western countries in the aftermath of the banking crisis remained a huge drag on economy growth and stability.
The Guardian, p. 27
Also appeared in : The Times, p.41

Wider powers risk damaging Bank, warns UBS head
Axel Weber, a former head of the Bundesbank, has claimed that plans to give the Bank of England sweeping new powers to regulate the financial system are unwise, telling an LSE audience that he had “flatly refused” a similar role for his own institution.
The Daily Telegraph Business, p. 1

Bankia shares drop 40% after fresh capital injection
Shares in Bankia fell by as much as half yesterday as the final steps of the largest bank rescue in Spanish history crystallise a near total loss for its shareholders less than two years after it was floated on the Madrid stock exchange.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 18
Also appeared in : International Herald Tribune, p.17

Insurers may be made to offer fixed-price flood cover
Insurers could be forced by law to provide flood cover to every household in the country at a fixed price. Defra officials say that they are prepared to take the unprecedented step of introducing compulsory regulation if a new deal cannot be agreed. Malcolm Tarling, from the ABI, said the industry “couldn’t guarantee” that an agreement would be reached in time.”
The Times, p. 7

Finance/Share rally boosts Aberdeen
Aberdeen Asset Management has pulled in £3. 5billlion of new money during the first 2 months of the year as investors rode the stock market rally.
The Independent, p. 54
Also appeared in : Independent i, p.42

Coalition urged to boost firepower of ailing enterprise finance scheme
Lending under the Enterprise Finance Guarantee fell by 26pc in the final three months of last year, according to official figures, leading to Philip White, chief executive of asset-based lender Syscap, to call on the government to reinvest time and effort in making the scheme a success.
The Daily Telegraph Business, p. 8

The above articles appeared on 26/03/13 reproduced with the kind permission of Kantar Media UK. All rights reserved.

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