Loans and Finance

Loans and Finance


News and information about loans, money, debt, finance and business issues.

Thursday, June 23, 2016

Brexit Will Not Be a Black Swan Event

The central banks and chancelleries of the world stand ready to steady the ship in the event of a Brexit.

There is nothing to fear, the hype and scaremongering is akin to Y2K which was a damp squib.

Wednesday, June 22, 2016

The Calm Before The Storm

BDI Chief Calls For No Trade Barriers Post Brexit

Tuesday, June 21, 2016

Housing Market Stagnates Because of Government Manipulation

Governments should learn that they cannot manipulate the housing market without causing blowback.

Monday, June 20, 2016

Sterling Continues To Surge

The markets have already called the result, it will be a vote to remain.

Pound Skyrockets

Traders will be pulling an all nighter on the 23rd, big bucks to be made on the volatility that will ensue as the votes are counted.

Friday, June 17, 2016

ESM Signs Off €7.5bn Greek Bailout

The European Stability Mechanism has given the green light for Greece's €7.5bn bailout.

However, it is not clear as to whether the IMF is onboard with this; as there has yet to be any debt relief offered to Greece.

Thursday, June 16, 2016

Britain's Booming - Brexit Worries Shrugged Off

FCA Kowtows To Banks Over PPI

Tuesday, June 14, 2016

UK Inflation Steady at 0.3%

UK inflation, contrary to expectations, has held steady at 0.3%.

NIRP Doomwatch

Monday, June 13, 2016

Property Bonanza On Brexit Win

Despite dire warnings from Project Fear, about a collapse in property prices, it transpires that international property investors are poised to “pile into” the UK snapping up office blocks, land and luxury homes if Brexit comes to fruition.

For why?

Theoretically, according to experts, sterling will fall thus making property cheap for international investors.

Guy Grainger, head of Europe, the Middle East and Asia for JLL is quoted by the Telegraph:
This is the big irony of the leave campaign – which is anti any foreign influence. In the event of a Brexit we may see a price correction in property and a fall in sterling which opportunistic international investors will view as a chance to pile in.” 
A recent report from the Royal Institute of Chartered Surveyors also showed that 80% of their members believed that the fear of an unknown future has held back investment flows. This, combined with high property values in the UK, has created pent up demand ready to react to a price correction.

In other words it is the uncertainty that is currently negatively impacting the economy, not the possibility of Brexit.

Friday, June 10, 2016

West Bromwich Rate Rise Overturned

The Court of Appeal has ruled in favour of 350 landlords who sued West Bromwich building society for raising their tracker mortgage rates in 2013, despite there being no rise in base rates.

The result means that 6,000 borrowers will receive a refund. 

Despite the fact that tracker mortgages are supposed to rise and fall in line with a central interest rates, such as the Bank of England's Bank Rate, West Bromwich had argued that smallprint in its contracts entitled it to raise rates even when the Bank Rate was stable.

It rationalised that its savers had been hard hit by low rates, and wanted to redress the balance by raising rates by 2%.

West Bromwich Building Society issued a statement, quoted by the Telegraph:
"We are disappointed with the judgement handed down today.

This judgement relates to the decision taken in 2013 to vary the interest rate margin charged  in line with the terms and conditions of their buy-to-let mortgages.

Savers, who represent the vast majority of the Society’s members, have suffered a dramatic fall in income due to lower interest rates. The Board of the Society therefore acted in accordance with its overarching duties to treat customers fairly and to act in the best interests of members as a whole, savers as well as borrowers."
That's very noble, but did the building society pass on the full benefits of the 2% rise to its savers?

Thursday, June 09, 2016

The ECB's Art of Timing

Monday, June 06, 2016

Fivefold Increase In 95% Mortgages

The Help to Buy mortgage guarantee scheme has led to a fivefold increase in the number of 95% mortgage products on offer since its inception three years ago.

Unsurprisingly, given the rise in property prices (especially in the South East) people are being forced to take on the largest possible mortgages in order to be able to afford to buy a house.

The Telegraph reports that when the mortgage guarantee scheme was introduced in October 2013, there were 56 mortgages available for 95% of a property’s value. Research conducted by Moneyfacts shows that the number on offer now stands at 271.

Ironically these mortgages are often not accessible for those in the South and South East, where they are needed the most. First-time-buyers in London had an average mortgage size of 77%, compared to 82% in the North West and 84.5% in Yorkshire.

The mortgage guarantee scheme is due to end this year. However, the equity loan scheme, also known as Help to Buy One, which launched in April 2013, will continue until 2020.