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.
Posted in Coreco, Credit Crunch, Economic Recovery, Inflation, Interest Rates, Mortgage Market, The Economy | Also tagged Bank of England, Credit Crunch, Economy, House Prices, London Mortgage Broker, Mortgage Market |
It has been a dismal World Cup for the average England supporter, but whilst the Scots rejoice in our misfortune, we can reflect on the fact that with every negative there is a positive and lessons to be learnt for all of us.
So what can a bunch of overpaid, oversexed and overinflated egotists teach us all? The answer is simple. In order to deal with adversity and to move forward it is the team that is more important than any one individual, no matter how talented they may feel they are.
One of the biggest changes in the Mortgage Market occurred a few days ago when the massive Lloyds Banking Group announced that they will no longer provide loans on an interest only basis above £500,000.
Given that it is the very customer base who most want to use interest only this is quite a big deal.
They have also gone further with loans below £500,000 in that applicants can no longer just say they will pay the loan off via the sale of the property, their buy-to-let portfolio or general bonus payments, but must have either a pension or some kind of savings plan. Is the return of the Endowment nigh?
We are finally on the cusp of the General Election with the outcome still not assured and whilst there are a few other trifling matters for the politicians’ to worry themselves about, (apparently we owe someone a lot of money for example), there are some other issues in the mortgage market that are provoking much discussion.
The main issue is around the nature of advice, especially with the news that Tesco, yes Tesco that well known bastion of professional independent advice, aim to enter the mortgage market. The question to ask therefore, is should mortgages be put on the same shelf as the weekly vegetables?
The latest figures from the Council of Mortgage Lenders, (CML), showing a modest improvement in the number of loans month-on-month is a welcome sight. What is more striking is the fact that loans for house purchases have increased by 49% year-on-year, albeit from a low base.
Given the amount of activity we have seen in the last few weeks, I would expect to see this figure increase further in the coming months as the traditional Spring uplift filters through.
Taken together with the latest report from the Royal Institute of Chartered Surveyors, (RICS), that says that the number of sellers has hit the highest level since May 2007 it would seem that a healthy property market is returning.
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.
