View more on these topics

Borrowers opting for variable rates as interest rise fear fades

The Council of Mortgage Lenders and the Building Societies&#39 Association have both seen big increases in lending in July compared with last year.

The CML reported a record £21.8bn last month compared with £15.5bn in July 2001 and £17.1bn in June this year.

The total number of loans in July to 147,000, the highest since records began in mid-1998, and up significantly from 120,000 in July last year.

The CML says that with fears of interest rate rises receding, 82 per cent of borrowers opted for variable-rate mortgages, which is the highest proportion taking SVRs since the mid-1990s.

The figures show that the average first-time buyer borrowed £83,406 in July, 2.57 times their income. This time last year, the average was 2.33 times income or £66,846.

BSA figures show gross advances reached £3.5bn in July, up from £2.1bn last year and £2.8bn in June this year.

Approvals rose to £3.7bn in July from £2.3bn in July last year and £3.2bn in June this year.

In the savings market, societies had net inflows of £879m, up from £312m last year and £865m in June.

CML head of research and analysis Bob Pannell says: “The buoyant conditions in the housing and lending markets are likely to persist for much of the rest of the year as households continue to enjoy low interest rates as well as high levels of employment.

“But these highly favourable conditions cannot continue indefinitely. A combination of factors – including higher unemployment, lower salary increases and an increase in National Insurance contributions – will engineer an easing back in the housing market.”


Pru bids to undercut rivals in loan protection sector before rebrand

Prudential is cutting premiums on its Scottish Amicable mortgage protection products in a bid to improve its market share before its rebrand next year. It only entered the market 20 months ago, selling through IFAs and mortgage brokers. Market share in this sector is traditionally driven by price. The Scottish Amicable name is set to […]

Skipton Building Society – 2 Year Fixed Rate Bond

Tuesday, 27 August 2002 Type: High interest account Minimum-maximum investment: £1,000-£10,000 Interest rate: 4.5% gross a year Term: Two years Offer period: Until further notice Withdrawal penalties: No withdrawals permitted during term Tel: 0800 446776

Ombudsman upholds dual pricing complaint against Abbey

The Financial Ombudsman has upheld the complaint against Abbey National from a customer kept on its higher standard variable rate after it introduced a lower Classic Base Rate Tracker. Abbey says it is disappointed as it believes it has never operated a dual pricing strategy but to bring the matter to a close it has […]

Friends wins sole rights for Countrywide protection sales

Friends Provident has signed an exclusive distribution agreement for £25m with estateagency chain Countrywide in a bid to double its protection business. Countrywide has bought the 104 estate agencies in Southern England from Friends Provident for £21m. Under the terms of the deal, Countrywide, the UK&#39s biggest estate-agency chain, expects to get a further £250m […]

Global equities: time to de-risk?

While equity valuations have doubled since the financial crisis, Simon Edelsten explains that there are still pockets of value. But not where you might think Macro-economic uncertainty is causing turbulence in equity markets. Artemis Global Select Fund manager Simon Edelsten says his investment themes are taking him in a different direction to some of his peers – away […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm