View more on these topics

Fitch downgrades Alliance & Leicester

Fitch Ratings has downgraded Alliance & Leicester, saying the action reflects the lender’s weak access to funding compared with higher rated banks.

A&L’s long term issuer default rating was cut to A+ from AA- and the short term IDR to F1 from F1+.

The outlook for A&L’s long term IDR was changed to stable.

Fitch says the ratings reflect A&L’s weaker prospects for reporting growth in profitability in 2008 and 2009, in view of higher funding costs and possible further writedowns on its structured credit portfolio.

A Fitch statement says: “These ratings also take account of the uncertainty surrounding the UK housing and mortgage lending market. A&L’s capitalisation is acceptable.

“The sound asset quality of A&L’s residential mortgage book and its ability to pre-fund its business into Q1 2009 are also incorporated into the ratings and underpin the stable outlook.”


Mutual bins deals and hikes rates

Nationwide has withdrawn its two-year tracker and fixed rate deals and hiked its remaining fixed rates by 0.2%.

US Fed Reserve offers $50bn funding

The US Federal Reserve has offered $50bn in 28-day funding to banks through a crisis auction today.The central bank has offered the credit through its Term Auction Facility.The auction was opened at 11am EDT and will close at 1pm EDT. The maximum bid amount per institution is $5bn.The minimum amount for a bid is $5m […]

Return to lender

As the mortgage market contracts remortgaging is becoming more important and brokers have a fight on their hands to stay in the game, says Bob Hunt

Nationwide pulls two-year fixes and trackers

Nationwide has followed in the footsteps of Abbey and repriced its product range. The mutual has withdrawn its two-year trackers and two-year fixes and increased all fixed rates by 0.20%. It has also increased the rates of selected trackers by 0.51% and 0.57%.


News and expert analysis straight to your inbox

Sign up