View more on these topics

Societies&#39 mortgage lending soars as rates fall

Building society gross mortgage advances have increased for the second


consecutive month, rising to £2.66bn in June from £2.37bn in May.


The Building Societies Association says the rise is due to mortgage rates


being at their lowest levels for 30 years. But it stresses the market is


not gearing up for a 1980s-style housing boom, dismissing fears of


overheating and subsequent collapse on the grounds that many regions are


experiencing very little demand for property.


Its monthly figures show the number of approvals dropped to £2.75bn in


June from £2.88bn in May.


The amount of money invested in building societies fell to £706m in June


from £1.05bn in May. But the BSA says £440m was ploughed into cash Isas in


June, bringing the total invested in building society cash Isas to more


than £1.4bn.


The association points out that only £1.7bn was invested in building


society Tessas in the whole of 1998.


Director-general Adrian Coles says: “The current health of the market


reflects the affordability of house purchase at the moment with mortgage


rates at their lowest for decades. This should not be interpreted as a


1980s-style housing boom.”



Mortgage Brief, p33

Recommended

Advice could be built into stakeholder pension charges

Stakeholder pension provider could be allowed to exceed the 1 per cent annual management charge according to a report in today&#39s Financial Times.The paper says providers will be able to charge a higher fee if the product includes detailed advice. The charge will take the form of an upfront fee.The FT says the stakeholder pension […]

FSA sets misselling review deadline

The FSA has set a final deadline of June 2002 for the remaining pensions misselling review cases to be cleared up, according to the Financial Times.The report says there are more than two million outstanding cases which are expected to be finished by this date, at a total cost to the industry of £11bn.The deadline […]

Scottish Equitable highlights the need for stakeholder advice

Scottish Equitable believes professional advice is the only means to absolve employers from liability should their chosen scheme underperform.The life office says there is a general reluctance among employers to be held accountable should a stakeholder scheme underperform.In its response to the second stakeholder consultative brief, Scottish Equitable is calling for the Government to encourage […]

PIA fines three IFA firms over pensions misselling review

The PIA has fined and reprimanded three IFA firms over compliance failings resulting from the pensions misselling review.Buckles of Independence House, Clwyd Street, Rhyl and Capital Planning & Finance of 11 Kingsway, London are both fined £15,000 and ordered to pay PIA costs of £4,500 and £4,200 respectively.Newman Houghton & Co of The Old Station, […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment