Scottish Housing Market Continues to Recover
The housing market continues to recover with most areas of Scotland showing price increases, according to the latest Scottish House Price Monitor from Lloyds TSB Scotland.
Struggling Mortgage Owners Can Defer Mortgage Payments For Two Years
The Government is launching a new scheme to help homeowners where their income has been hit by redundancies or loss of overtime payments.
MPs Accuse Lenders of Being Too Cautious
The Council of Mortgage Lenders has defended its members against MPs’ accusations of being over cautious with mortgage lending. Some MPs have said lenders are hoarding cash while the market sorts itself out.
Libor Stays High as Base Rate Cuts are Forecast
Although the three-month Libor rate is remaining frustratingly high, there are expectations for the base rate to be cut again this year and throughout 2009, as forecasts are for inflation to come down, maybe as low as 1% in 12 months time.
Borrowing Still Tough as Deposits Go Up
As Nationwide announced requirements for higher deposits, and reduced borrowing limits, the cheapest tracker rate on the market comes from First Direct.
Mortgage Lenders Slow to Respond Positively
Some mortgage lenders have reacted to the Bank of England rate cut or the Government rescue package by raising tracker rates or by increasing their demands for deposits. It is hardly the response the Government would have hoped for.
Libor Unmoved by Government Rescue Package
It is going to take time for the Government’s financial rescue package to have an effect on the markets. That much was evident after the FTSE continued to fall and Libor rate did not follow the base rate down.
Welcome Rate Cuts for Mortgage-Owners
The Bank of England unexpectedly cut its base rate by 0.5% yesterday, bringing financial relief to thousands of homeowners as monthly mortgage repayments will now fall.
Bank Cuts Interest Rate a Day Early in Co-ordinated Move
Following the Government’s £50bn rescue plan for banks on Wednesday morning, the Bank of England cut the base rate by 0.5%, announcing the move a day early. The US Federal Reserve, the European Central Bank and other European central banks made similar moves. The Stock Market responded favourably.
UK Government Rescue Plan for Banks
The UK Government is to inject £50bn worth of capital into the banking system in an attempt to get the banking system moving again. In return the Government will receive preference shares. So far, eight banks are listed as taking part in the plan.
