London’s housing market slowed sharply in the summer, industry figures show, while the market perked up in Scotland and Wales. The overall UK market is still rising fast, with a total of £11.8bn of mortgages approved in July, an increase of 15pc on the same time a year ago, according to the British Bankers’ Association. Mortgages to fund home purchases increased 11pc to £7.8bn, while remortgages rocketed by 29pc on the year to £4.1bn as home owners race to get a better deal before interest rates go up.
FUND manager James Anderson, who runs the £3.7 billion Scottish Mortgage Investment Trust, has warned there continues to be "unjustified greed" in a banking sector that has shown little appetite for change. Mr Anderson also states his belief that traditional banks are starting to become less central to the economic system as alternative models of financing emerge. In the Scottish Mortgage annual report he said: "There is still precious little evidence that the financial system has meaningfully reformed itself.
Virgin Money has reported a boost to profits with significant growth of its mortgage lending. The Edinburgh-based bank issued half-year figures showing underlying pre-tax profits up 37% to £82m. Gross mortgage lending was up 44% to £23.6bn. Virgin Money had 3.8% market share of the lending market at the end of May. Retail deposits were up 3% to £22.8bn, meaning 88% of lending is funded by depositors. Virgin Money is building its credit card business rapidly, following the transition of 675,000 accounts from
The growing buy-to-let property market in the UK could post a threat to wider financial stability, a Bank of England committee has said. Buy-to-let mortgage lending had the potential to "amplify" a housing boom and bust, the Bank's Financial Stability Committee (FPC) concluded. Lending in this sector has risen by 40% since 2008, the FPC said. It stopped short of suggesting any intervention by government or regulators at this stage. "The FPC is alert to the rapid growth of the market and potential
UK house prices rose by 3.2% year-on-year in August, according to the latest survey from mortgage provider Nationwide. That is the weakest annual pace since June 2013, and marks a slight slowdown from July. Month on month, prices rose by 0.3% in August, compared with 0.4% the month before. The average house value in August was £195,279, according to the Nationwide house price index. One reason why house price inflation has apparently weakened is a rapid growth in prices at this time last year, the Nationwide