View more on these topics

Newcastle introduces RESI bond IV and V

Newcastle Building Society is bringing in two new issues of its residential enhanced secure indexed (RESI) bond.

Issue four and issue five of the RESI bond are three-year guaranteed equity bonds which track the Halifax house prices index. The index follows changes in average house prices across the UK every month.

Issue four will offer an interest rate of 7.5 per cent for the first two years and will then pay a rate of interest equal to 50 per cent of the growth of the index over the term for the last year. Issue five will have an interest rate equal to two times any rise in the index over the three-year term. In the event that the index stays the same or falls in value, the original capital will be returned in full.

The housing market has seen a great deal of growth in recent years, prompting fears that the housing market is overheating. However rises in house prices have recently slowed slightly ahead of fears that the Bank of England might put up interest rates, and this has seen more sustainable growth.

In 1997 the Halifax house prices index stood at £68,504 for an average property. On October 4, 2000 it stood at £86,304, a rise of 26 per cent.


Polar Stations

The London Economics report too readily dismisses keeping the status quo.Of the four scenarios listed, the least damaging to consumer interests is the approach known as “white-labelling”. Further consideration of polarisation should take into account not only economic analysis of competition effects but also consumer benefit, existing and potential, from clarity of status. Those who […]

Don&#39t sweep supermarkets under carpet

IFAs may to tempted to dismiss the launch of pension supermarkets as a non-event. The feeling is that although consumers may venture on to the internet to find a pension, the vast array of information they will encounter is likely to push them straight back into the arms of an IFA. Yet it is important […]

IFAs beware the pitfalls of ScotEq bond

I write to warn fellow IFAs of the problems I have encountered with Scottish Equitable and its Security Plus bond.My clients effected this contract in March 1998 and, in view of their need for caution, the 97.5 per cent guarantee contract was recommended. £15,000 was invested and, due to the fund&#39s non-performance, the value on […]

Share blow for Moneyextra

The future of The Exchange&#39s parent company Moneyextra has been thrown into uncertainty after a potential major shareholder pulled out of an option to buy 22 per cent of its shares.Deutsche Bank had taken an option to buy the stake, which amounts to more than 48 million shares, in June.But after a three-month window, the […]


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 thought leadership.

    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