For those of you who think times are more than a little tough at the moment, the news that there are still major fears about the strength of the European Banking System, is not really what you will want to hear.
However, this week sees the release of a major report involving the “stress-testing” on a range of European Banks to determine their health and, perhaps more importantly, whether they are in a position to cope if anything goes seriously wrong again. These “detailed” tests have been undertaken on 91 banks, including names such as Deutsche Bank and Commerzbank in Germany, HSBC and Barclays in the UK, as well as Societe Generale and BNP Paribas in France.
Also posted in Coreco, Economic Recovery, Inflation, Interest Rates, Mortgage Market, The Economy | Tagged Bank of England, Credit Crunch, Economy, House Prices, London Mortgage Broker, Mortgage Market, mortgage products |
So the silly season seems to have crept up on us and all of a sudden another year has almost flown by. It’s been a funny old year really, tough for most, with a lot of anger and frustration directed at our “leaders”. The Iraq War enquiry is in full swing, strike news abounds, war has been declared on everyone from MP’s and bankers to company directors, (see BA and Consignia for further details), and especially dear old Simon Cowell.
Last week I found myself on stage as part of a panel addressing 50 of Australia’s top mortgage brokers who were interested in how their own impending regulation will impact them. What they soon realised, a year after Lehman’s went, (a year tomorrow 15th actually), was just how lucky they have been and how hard things have been here.
As I am sure you can imagine, the Aussies were not shy in coming forward and the questions were fast, furious, incisive and intelligent. I was very grateful to have met such a great bunch of people and whilst I left with visions of answering the phone Coreco Sydney in my beach wear and thongs it was a sharp reminder how a year ago we all seemed to fall off a cliff with no parachute.
Yesterday the main news was all about the fact that the UK’s obsession with borrowing seems to be at an end, or at least put very firmly on ice. The latest figures showed that for the first time since records began in 1993, debt repayments outstripped borrowing.
The Evening Standard called this an historic “Micawber Moment”, after the Dickens character in David Copperfield who “lectures on the benefits of financial prudence”.
I was up at the crack of dawn today for a quick comment on Wake Up To Money on BBC 5 Live, where the topic was the fact that LIBOR rates have now fallen substantially. 3 month LIBOR, which was so far out of kilter a few months ago and used as the main excuse behind lack of funds is now down at 0.75%, basically back to a “normal” level.
If this is the case, then why have rates not decreased?
For me Lenders at the moment are pricing based on three areas; cost, profit and fear.
Andrew Montlake, Communications Director at Coreco and ‘Mortgage Personality of the Year 2008’, gives his views — honest and no holds barred — on the latest developments within the mortgage and property markets.
