View more on these topics

Northern Rock upbeat over lending prospects

Northern Rock predicts that gross mortgage lending will hit £360bn this year despite fears from some commentators that the sector could contract.

The UK’s fourth-biggest lender, which last week revealed profits of £627m and record gross lending of £33bn for 2006, giving it an 8.3 per cent market share, has made the bold prediction against the tide of market opinion. Last year’s total stood at £346bn.

The Council of Mortgage Lenders had predicted a £360bn market in 2007 before swap rates rose sharply over Christmas and New Year and the base rate increased to 5.25 per cent in January.

The CML has since said it might have to review its forecast, amid suggestions from many commentators that potential borrowers will be put off by higher mortgage rates.

HBOS believes that gross lending will be around £330bn this year but Hamptons International Mortgages puts the figure as low as £300bn, citing the increased use of retention strategies by lenders.

Northern Rock has pledged to expand intermediary distribution with a move into sub-prime via a partnership with Lehman Brothers.

A Northern Rock spokesman says: “We expect UK gross residential lending in 2007 to be a little higher than 2006 at around £360bn, underpinned by a stable housing market and sustained remortgage activity.”

Chief executive Adam Applegarth says: “We have low levels of arrears, strong credit risk management and a low-risk balance sheet.”

Recommended

Concordia agrees first exclusive with IF

Broker alliance Concordia has agreed its first exclusive deal following its launch last November.It has linked up with HBOS-brand Intelligent Finance to provide exclusive offset products. Concordia is also in talks with a number of other lenders about securing exclusive deals for customers of its five broker members Alexander Hall, Chase de Vere Mortgage Management, […]

Group to steer FSA on retail route

The FSA has set up a retail savings regulatory steering group to help ensure its retail initiatives are coherent and deliver a more principle-based approach to meeting its statutory objectives. Members include Standard Life’s Trevor Matthews, Which?’s Doug Taylor and On-line Partnership’s Stanley Lovell.

Canada Life introduces new CI definitions

Canada Life Group Insurance are the first group provider to introduce the Association of British Insurers best practice definitions on critical illness cover.Royal Liver and Prudential are the only individual protection providers to have introduced the updated CI definitions which have to be implemented by April.Canada Life will be introducing the new definitions on its […]

Online service gives free healthcheck and advice

Liverpool Victoria is offering an advisory service and free online healthchecks to all new protection policyholders.Healthy Steps, which launches on February 5, is an online service which will provide policyholders with a personal profile of their health, including their risk of suffering from heart disease and common cancers. This is the first service of its […]

Neptune video: Indian valuations and Modi’s pro-investment agenda

Kunal Desai, Head of Indian Equities, discusses his expectations for the Indian market and highlights the key indicators that he is watching for 2015.

In the video, Kunal addresses:

• Indian equity valuations and the importance of stock selection in gaining exposure to the earnings upgrade cycle

• The BJP’s strengthening ambition in its pro-reform, pro-investment agenda

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com