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Higher commercial lending limit for mutuals is laughable

I was surprised to read that the Financial Services Authority could potentially increase the cap – currently 25% – on commercial lending for mutuals (Mortgage Strategy Online).

Apart from one building society, the others seem to be doing okay. They are struggling to meet the fees imposed by the Financial Services Compensation Scheme to pay for failed banks and have been downgraded, but they have not managed to ruin the economy like banks have.

The sentence attributed to Adair Turner, chairman of the FSA, that the restriction on commercial lending might be justified on the ground that societies are “less likely than large banks to have the credit skills required to do good commercial real estate lending” makes me laugh.

Has he been asleep for the last year and a bit?

Torild Bastien

Indepensdent Mortgage Adviser

Iver Mortgage Company

By email

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Abbey (and Alliance & Leicester) announces good Q1 figures

Abbey announced its results (unaudited) for the first quarter of 2009 this week and these confirmed a further increase in the bank’s (now also including Alliance & Leicester) market share of gross lending, pushing the figure back up to an estimated 15%, compared to only 11.0% in the previous quarter.

Repossessions fall 50% at Co-operative Bank

Figures from The Co-operative Bank show the number of repossessions at the bank have halved over the past 12 months.Figures from the Council of Mortgage Lenders estimated that the number of repossessions during 2009 will jump by 67% to 75,000.However, over the last six months The Co-operative Bank has only been involved in eight repossessions, […]

Bolton to bolt

And finally, industry consultant Michael Bolton was apparently left reeling from last week’s Budget.

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