Archive for the ‘Homeowner’ Category

Virgin Money To Launch Bank

Virgin Bank

Virgin Money the consumer credit wing of the Virgin empire has applied for a full banking licence.

Virgin Money made their application to the FSA(Financial Services Authority) two weeks ago. The application can take up to 6 months to go through the system but if passed, which is probably a given, Virgin Money plant to open an online bank offering to take deposits and provide mortgages.

Their strategy is to build an Internet presence and develop a branch network on the back of this. As a part of this process the new company will investigate acquisitions as part of this process. A second bid for Northern Rock is a possibility.

A consortium is probably the route, with private equity, that Virgin will take with the acquisitions. (more…)

Banks Lending More Mortgages

UK Lenders are predicting mortgage availability to increase in the next few months as the outlook for the economy improves.

The Bank of England’s Trends in Lending report revealed that projection comes after availability dipped in the third quarter of the year.

New mortgages rates rose in August to an average of 4.3% up from 4.2% in July.

Credit card borrowing and loans continue.

Lenders have stated that there has been no increase in demand for car loans in spite of the rise in car sales on the back of the scrappage scheme. (more…)

UK House Prices Are On The Rise

Asking prices for homes in England and Wales rose on an annual basis for the first in more than a year in October, property Web site Rightmove said on Monday, buoyed by a dearth of properties coming onto the market.

October saw the first annual based rise in house prices in England and Wales for more than a year stated property based website Rightmove, this is a result of new properties coming on to the market. (more…)

Mortgage Approvals Jump

Mortgage Approval

According to Reuters, Banks have approved 81.4% more home loans in August than they did in August 2008 a survey showed on Wednesday a rise towards pre-credit crunch levels.

The British Bankers’ Association stated 38,095 mortgage applications were approved in August. That was slightly lower than the 38,186 approved in July but a significant rise on August 2008 when activity in the housing market almost stopped completely.

Other surveys indicate that record low interest rates have helped to stabilise Britain’s housing market after sharp drops in value last year.

Loan applications for house purchases have recovered to early 2008 levels, but low levels of consumer demand and a low number of properties coming onto the market will continue to impact on lending.

Analysts stated that the figures provided evidence of a recovery in confidence, despite the the annual rise in approvals being flattered by a particularly weak month last year.

House prices in the UK fell by a fifth during 2008 but appear to be picking up in recent months. A Reuters survey earlier this month indicated that most analysts think property prices have bottomed out but predict growth will be slow as supply gradually increases.