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Terrorist strikes accelerate housing slowdown

Lenders and brokers have taken last week&#39s drop in the Halifax house price index as sign of more sustainable increase in property value, rather than warning of a price collapse.

The 0.5% fall is the same size as that recorded by the Nationwide index two weeks ago.

It is the first fall that Halifax has recorded since December 2000, and shows a decrease in the number of mortgages approved during October. As such, it captures more of the fallout following the 11 September strikes than the previous month&#39s index, which showed house prices unchanged. The Halifax now puts the average price of a house at £93,616.

Halifax chief economist Martin Ellis says: “There are clear signs that house price growth is slowing down, but we think it is a slowdown rather than a crash.”


CML changes the role of packagers

Regulation will change the role of intermediaries and packagers, but mortgage experts believe that both will continue to be extremely important to lenders. Ian Balfour, marketing director at Solent Mortgage Services, says: “Packagers will work with lenders and intermediaries on all issues to do with CP98, because whatever happens to them is inevitably reflected back […]

Frustrated brokers threaten to quit in droves

Poor service levels and compulsory CeMAP exams threaten to drive a significant number of intermediaries from the market, according to Marlborough Stirling Mortgage Services (MSMS). Joe Bradley, MSMS chief executive, says: “Outdated IT systems and a lack of resources are largely to blame. The onset of regulation will make this worse as the complexity of […]

Boom time for specialist mortgage lenders

Specialist mortgage lenders have seen a 434% increase in new advances over the last five years, according to a Mintel survey of sub-prime lending published last week. Specialist mortgage lenders such as the Kensington Mortgage Company or igroup were responsible for £25bn – nearly 10% of new lending in 2000. The report suggests that sub-prime, […]

Borrowers have their collar felt by lenders

With interest rates at a 38-year low and possibly more cuts to come, borrowers are being advised to look out for collars – a lender-imposed minimum on how low mortgage rates can go. Although floors of 3% or 3.5% on discounted rates are not new, now there is a real prospect of these collars tightening […]

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Has Britain really stopped saving?

By Steve Webb, Director of Policy and External Communications Our latest policy paper reveals what the fall in the savings ratio does (and doesn’t) mean In June 2017, the Office for National Statistics published its estimates for the ‘savings ratio’ for the first quarter of 2017. This is essentially a measure of the percentage of […]


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