Top five articles of last week
1. The 20-year-old interest-only timebomb about to explode
2. Halifax increases SVR cap for 40k customers
3. Disaster or storm in a teacup? The interest-only crackdown
4. Northern Rock bailout to net taxpayer £11bn profit
5. 100 families claim enough housing benefit to fund £1m mortgages
Exploding times
On Monday, Steve Wilkie, managing director of Responsible Equity Release, revealed that thousands of borrowers on interest-only mortgages from the ’80s and ’90s are approaching the end of term with huge shortfalls, leaving few viable options for repayment.
On the rise
HSBC’s annual results proved it to be one of the few big lenders notably increasing its gross new mortgage lending, which was up 12.2% in 2011 to £13.2bn, securing it a 9.6% market share.
Sympathy required?
After Lloyds’ research found that 61% of second steppers are trapped and unable to move on from their first home, Melanie Bien asks whether they deserve sympathy or should be grateful for what they have.
Justice at risk
The Treasury Select Committee has warned that allowing the new regulator to publish early warning notices poses a risk to ‘natural justice’ and urged the government to reconsider the issue.
Claims complainers
Sesame blamed claims management companies (CMCs) for a near-100% rise in the number of complaints against it being referred to the Financial Ombudsman Service (FOS).
Mutual growth
Building societies flew in the face of stalling gross mortgage lending across the industry, with the BSA revealing on Wednesday that mutual lending was up 15.6% in 2011 compared to 2010 at £23.6bn.
Mountain out of a mole hill?
In Market Watch, we asked the experts whether the recent crackdown by lenders on interest only really mattered.
Withdrawal
Accord Mortgages temporarily withdrew its entire residential mortgage range after receiving “higher than expected” levels of applications over the last few weeks.
On hold
On Thursday, Bank of England policymakers revealed that market participants expect interest rates in the UK to remain on hold until late 2014.
Bad banks, good profits
On Friday, taxpayer-owned UK Asset Resolution, made up of failed lenders Bradford & Bingley and Northern Rock (Asset Management), reported pre-tax profits of £1.09bn for 2011, up from £444m in 2010, and repaid £2.15bn of government funding.
Rush to the top
More than 120 Legal & General employees took on the Vertical Rush challenge, racing up 600ft to the top of Tower 42 in the City of London and raising £18,000 for Shelter through their efforts.
And finally….top tweets
Matt Smith @mattsmithwpb
Upon Davy Jones passing my ten-year-old remarked “the one from pirates of the carribean?” Time is a great leveller.
Robert Peston @Peston
Barclays took £6.7bn of three-year money from European Central Bank. Eurozone taxpayers are doing their bit for UK banks. Spiffing, eh?
Martin Reynolds @ReynoldsRambles
Everything will be alright in the end. If it is not alright yet, then we’re obviously not at the end.
Jonathan Southgate @jrsouthgate
@Peston – There are only 10 types of people in the world: those who understand binary, and those who don’t.
Lea Karasavvas @Mortgage_Mind
Rates are literally being recycled quicker than my dustbins at present.
Ariane Buteux @ari_ane
RT @nedsimons Parliament spent £8,110.70 on bottled water between April and December 2011. It is now ‘trialing’ tap water.
Elizabeth Windsor @Queen_UK
Edward is so excited about Eurovision now. He just adores Engelbert Humperdinck.
