View more on these topics

Hornby makes dire liquidity forecast

Andy Hornby, chief executive of HBOS, says it will be 18 months before liquidity returns to the market.

In an interview with the BBC Hornby says that it will take house prices rising in the US to stimulate lending in the UK as two-thirds of the funding for British mortgage market comes from overseas.

Hornby says: “My personal view, for what it’s worth, is that it will take 18 months to play through the system.

“It’s going to take 18 months before US house prices have started to rise again – which is what’s required for banks to have the confidence to start lending again.

“It will take a long time to play out.”

He also says that there is little the government can do to stimulate the market and that there is “no doubt” that the UK will see house price deflation similar to that experienced in the 1990s.

But he says unemployment will not be as affected as in the 1990’s and so people will still be able to pay their mortgages.

Recommended

Fees glorious fees

Yesterday I spent most of the day at the Royal Bank of Scotland Roadshow in London where among the speakers were Grenville Turner, group chief executive of Countrywide and Phil Spencer of Location, Location,
Location fame.

Conflicting confidence data

Differences have emerged between Financial Services Authority data and independent research into consumer confidence following the Northern Rock fiasco. YouGov recently carried out a poll of NR savers as part of the only consultation with customers since the run on the bank. It asked them how confident they are that financial firms have adequately qualified […]

FTB plan dubbed dangerous

Mortgage expert Jonathan Cornell has branded the government’s mortgage rescue plan offering first-time buyers interest-free 30% loans to buy new-build properties dangerous and short-sighted.The £300m scheme forms part of a £1bn plan unveiled last week to tackle the challenges posed by prevailing conditions in the housing market.The 30% equity loans will be jointly funded by […]

Skipton offers 95% LTV deals

Skipton is to offer first-time buyers 95% LTV deals through its Mutually Exclusive scheme.From September 15 its account holders can access the deals if they or a family member put 20% of the property’s value into one of the mutual’s savings accounts.

9 October thumbnail

Johnson Fleming set to host webinar on auditing auto-enrolment schemes

With 23 auto-enrolment compliance notices issued by the Pensions Regulator, and an evolving legislative landscape meaning previously compliant schemes may now be in breach of regulation, now is the time to think about auditing your auto-enrolment scheme. Johnson Fleming is hosting a webinar on 9 October at 11:00 on how to audit your scheme to ensure compliance, avoid breaches and fines and overcome data issues.

Newsletter

News and expert analysis straight to your inbox

Sign up