In the midst of the credit crunch it is not positive to see Bradford & Bingley, a buy-to-let loans specialist, has reported a loss for the six months up to 30th June.
B&B made a loss of £26.7m compared to the profit that they made against a £180.4m profit the previous year. Due to the circumstances it is not a surprise that they have made a loss but it is quite worrying to see the extent of this loss.
The conditions mean that it is harder to get access to credit and therefore people may struggle when it comes to purchasing property.
Looking to the future B&B have said that they would reduce the volume of buy-to-let mortgages until the market becomes more favourable. Therefore, for the time being people may find it difficult to get there hands on a buy-to-let loan.
Friday, 29 August 2008
Thursday, 28 August 2008
House prices fall by 10.5% in one year
The latest survey from the Nationwide has found that house prices have fallen by 10.5% in the last year. This is the first time since 1990 that there has been a double digit fall.
The average price of a home has fallen by £19,000 in the last year and indicates worrying times for people who are looking to sell their house.
The market is likely to stay subdued according to Nationwide after gloomy forecasts expressed by builders. The survey showed that house prices have fallen for the past 10 months in a row and are at their lowest level since early 2006.
House builders were pointing to a lack of consumer confidence which was encouraging the fall. To add to this mortgage lending is continuing to fall with a lot more people being refused mortgages because of the uncertainty within the market.
The average price of a home has fallen by £19,000 in the last year and indicates worrying times for people who are looking to sell their house.
The market is likely to stay subdued according to Nationwide after gloomy forecasts expressed by builders. The survey showed that house prices have fallen for the past 10 months in a row and are at their lowest level since early 2006.
House builders were pointing to a lack of consumer confidence which was encouraging the fall. To add to this mortgage lending is continuing to fall with a lot more people being refused mortgages because of the uncertainty within the market.
Wednesday, 27 August 2008
Mortgage lending “levels off” in UK
Major banks mortgage lending has levelled off in July but the amount borrowed for day-to-day spending slowed according to today’s figures.
The amount lent for mortgages in July rose by £4.3bn, which was the same amount as in June according to the British Bankers Association (BBA).
However, there was a prompt warning about predicting a housing market recovery as there was still only a low number of mortgage approvals. The overall rise in consumer credit rose by £0.1bn which is down from £0.3bn in June.
The overall number of approvals for house purchases increased marginally in July from June but is still 65% lower than the same time last year.
It is still too early to suggest that the housing market is starting to recover but let’s hope approvals continue to grow in the coming months.
The amount lent for mortgages in July rose by £4.3bn, which was the same amount as in June according to the British Bankers Association (BBA).
However, there was a prompt warning about predicting a housing market recovery as there was still only a low number of mortgage approvals. The overall rise in consumer credit rose by £0.1bn which is down from £0.3bn in June.
The overall number of approvals for house purchases increased marginally in July from June but is still 65% lower than the same time last year.
It is still too early to suggest that the housing market is starting to recover but let’s hope approvals continue to grow in the coming months.
Monday, 4 August 2008
Insolvency figures reduced
Today has seen the surprise news that individual insolvency has decreased in the last quarter. The total number of individual insolvencies in England and Wales was down by 2% to 24,553. It was also 8.3% below the figure at the same time in 2007.
It may be that less people are wanting to get into debt due to the credit crunch and banks are also less keen to offer credit as they are unsure of what the economy will pan out like.
However, company liquidations were up by 11.6% on the previous quarter to 3,560.
‘Surprised’
The results came as a surprise to analysts as they believed that there would be a slight rise in the figures.
However, it is still expected that the number of individual insolvencies will increase over the next 12 months.
Provisional figures for Scotland are a lot more gloomy showing that individual insolvencies could rise to 4,735 in the second quarter of 2008. This is a 45% rise on the previous three months and 36% up on the same period a year ago.
It may be that less people are wanting to get into debt due to the credit crunch and banks are also less keen to offer credit as they are unsure of what the economy will pan out like.
However, company liquidations were up by 11.6% on the previous quarter to 3,560.
‘Surprised’
The results came as a surprise to analysts as they believed that there would be a slight rise in the figures.
However, it is still expected that the number of individual insolvencies will increase over the next 12 months.
Provisional figures for Scotland are a lot more gloomy showing that individual insolvencies could rise to 4,735 in the second quarter of 2008. This is a 45% rise on the previous three months and 36% up on the same period a year ago.
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