May 29th, 2010
The number of UK homes for sale have increased by as much as one third following the new governments cancelling of Home Information Packs of HIPS, according to some of the country’s biggest estate and property agents.
hips cancellation: homes on sale increase
New for sale instructions are up 68% compared with the same period is 2009, almost to levels last seen in September 2007 when home information packs were first introduced.
The packs had been designed to speed up the selling process by giving buyers more of the information they need up front. However many vendors have complained that the typical cost of compiling a HIP deterred them from putting their home on the market even just to test the water.
In fact 91% of estate agents saying they thought house buyers paid little or no attention to them.
According to Robert Scarff, managing director of Countrywide’s estate agency: “The results speak for themselves and show that the timing of the suspension of Hips was crucial… This decision has provided homeowners with the incentive they need to put their properties on the market… Those sellers that were in two minds are now doing so and causing a big spike in activity for agents… The increase in activity kicked off as soon as the Government announcement was made…. This clearly shows how highly regarded Hips were and supports our view that the Government was 100% right in their decision to suspend the scheme.”
Posted in economy, finance, loans, mortgages, property | No Comments »
May 28th, 2010
lloyds-tsb ups mortgage rate
New mortgage borrowers with Lloyds TSB and Cheltenham & Gloucester will pay a higher standard variable rate when their initial mortgage deal expires.
Currently borrowers revert to a standard variable rate (SVR) of just 2% above bank rate, at 2.5%, but from Tuesday 1st June, any new borrowers, will revert to an SVR without a ceiling, which is currently 3.99%.
The change is a result of the cost of raising mortgage funds becoming more expensive now that it is no longer directly linked to the Bank of England’s bank rate.
According to a Lloyds TSB source, “It balances the interests of customers with the commercial imperative of managing the business in a sustainable and prudent fashion… The new rate, which reflects the ongoing substantially higher cost of funding, enables the group to continue to offer a competitive and innovative range of products.”
The change will not affect existing borrowers who have their SVR, of bank rate plus 0.5%, guaranteed for life, but the new SVR will not have a cap or be linked explicitly to bank rate.
Additionally, no-one one will pay the higher rate until at least June 2012, the earliest that any new deal fixed-rate or tracker-rate deal would expire. However the rate could change if for example a rise in bank rate puts up the general cost of funding mortgages.
Posted in banking, economy, finance, loans, mortgages | No Comments »
May 27th, 2010
Cameron: trade talks stimulate economy
British Prime Minister David Cameron believes a resumption in world trade talks could be the catalyst encouraging economic growth, at no cost to any of the countries involved. The Doha world trade talks were launched in Qatar in 2001, with the aim of stimulating worldwide growth through trade.
In a radio interview for the BBC, Cameron said, “I think if the world wants a stimulus, and it’s a stimulus that would really benefit, we should be pushing much harder on getting the Doha Trade Round going again…”
“There is now an international consensus that dealing with our budget deficits is vitally important, if you look at the threats to the euro zone and the threats to our economies around the world, excessive budget deficits are a big part of the problem,” he added.
Posted in banking, commercial, economy | No Comments »
May 4th, 2010
Barclays announces higher first quarter pre-tax profits in 2010 compared to 2009
barclays pre-tax profits up
Pre-tax profits of £1.82bn were up 47% with net earnings £1.07bn in the three months to March from £826m in the same period of 2009. The bank’s overall figures have been boosted by a fall in bad debts and signs of economic recovery.
According to chief executive John Varley: “I am pleased with the strong growth in profits which we have delivered this quarter… Diversification of our business and risk, and good underlying performance, have combined to produce this result… The improvement that we have seen in impairment reflects the signs of economic recovery now evident in many of the markets in which we operate.”
The bank has been criticised recently over bonus payments after shareholder advisory body Pirc warned that rewards on offer to Barclays senior management were deemed “potentially excessive”. The bank has set aside around £1.4bn in pay and benefits for investment banking staff from the first quarter but confirmed the figure would only be confirmed after the year-end.
Full story: Yahoo news: Barclays profits up
Posted in banking, commercial, finance | 1 Comment »
March 22nd, 2010
The availability of new mortgage deals for UK homebuyers has improved during the first few months of 2010.
mortgage availablity improving in 2010
According to financial information service Moneyfacts, at the start of March there were 1,798 mortgage deals available, requiring deposits from as little as 0% to 40%. The is a 68% increase in the number mortgage products available compared to the same period in 2009.
Michelle Slade of Moneyfacts commented: “There are a growing number of mortgage providers who are becoming a little more accommodating with their credit criteria and this bodes well for consumers who will benefit from a growing competitive mortgage market… It is pleasing to see that the average mortgage rate is falling at the same time as deposit requirements are getting smaller.”
Posted in finance, loans, mortgages | No Comments »
March 21st, 2010
Welcome to the new UK Mortgage and Finance Blog from Dorringtons Commercial. We will keep you informed of the latest property, mortgage, finance and insurance trends to affect UK home owners and small business owners. We live in exciting times!
The last year has been a tough one for many as the financial recession has bitten hard. However many people in employment and enjoying lower interest rates on their mortgage loan , meaning extra cash in their pocket at the end of each month.
The rest of 2010 could see tough times for many, but now is actually one of the best times for many years to apply for a mortgage or loan. Whilst there are not to many mortgages and load currently being issued by the lenders, those mortgages that are being completed are actually excellent deals for the home owner.
Posted in commercial, finance, insurance, loans, mortgages, property | No Comments »
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