Home Sales Drop This January, Says HMRC
Property sales in the United Kingdom had the usual New Year decline this year. However sales during the month of January were noted to be higher compared to any first month since the year 2008. According to figures from the HM Revenue and Customs, there were 64,000 homes sold during the month of January which is way below the December’s sales which is 86,000. Back in January 2011, the total property sales recorded was at 52,000. Sales are still below the 115,000 transactions that were closed back in January 2007 which is the peak of the property boom in the country. For 2011, there were a total of 869,000 homes sold. This is quite the same to the property sales figures recorded in 2009 and 2010. The housing market usually experiences a dip during the beginning of the year and starts to come back to its normal activity as spring begins.
UK Banks Raised Doubts on Credit Easing Policies
A number of financial institutions in the United Kingdom have expressed their doubts in the government’s credit easing policy. Banks say that this may result to loans that are priced lower for small and medium sized businesses. The Treasury is still looking over the different details o the credit easing policy. This is going to aid in reducing the cost of loan for SMEs by providing a lower cost state backed funding for lenders. However, a month before the final policy is due to be released, banks such as HSBC, Barclays and Santander UK are not convinced that the policy will be able to give them the cheaper funding than they can find in other sources. This reaction from the banks is a big problem for the UK government as they now find ways on how to change the lending to SME sector following doubts on the Merlin targets for 2011 that were not good enough to clear the supply of credit.
Top 10 Things You Need To Know About Unsecured Loans
Taking out an unsecured loan is something at least worth considering if you have a stable history of well-managed finances, including always paying your bills in full and on time. There are several important differences between secured and unsecured loans that should be carefully considered by potential borrowers, with advantages and disadvantages that will affect the repayments. Your signature is the only security provided to the lender for an unsecured loan. This is in contrast to the assets such as your house that are given as security for a secured loan. In the latter case, if the lender is not repaid in full they may lawfully seize your assets as a last resort and sell them to recover their money, and there is nothing you will be able to do about it. With an unsecured loan the amount you borrow will be determined mainly by your credit rating. The lender may also look into your employment history and annual income.
Moody’s Will Probably Cut Credit Ratings of 17 Banks
The ratings agency Moody’s has issued a warning that it may cut down the credit ratings of 17 financial institutions that the firm is now evaluating. Moody’s has said that Morgan Stanley, UBS, and Credit Suisse may probably have their ratings cut down by up to three levels. Moody’s also said that the current credit ratings of the financial institutions are not a very good representation of how they are actually doing in the market. Nine out of the 17 banks that Moody’s is looking over include Barclays, HSBC and RBS. The ones that are most probably going to get a two level cut are Baclays, BNP Paribas, Credit Agricole, Deutsche Bank, HSBC Holdings and Goldman Sachs. The ones that may be downgraded by just one notch are Bank of America and Nomura. According to Alexander Potter who is a banking specialist at Berenberg Bank, “This follows a similar review by S&P and credit spreads highlight the fact the market is already, in most cases, well ahead of the slow-moving ratings agencies.
Inflation Rate of the UK Down to 3.6% in January
Inflation has decline during the month of January as the effect of 2011’s value added tax increase was not revealed in the reports. The Consumer Prices Index measure of inflation in the United Kingdom has declined to 3.6 percent during the month of January, which is a big jump from its previous record of 4.2 percent in December, according to the report released by the Office for National Statistics. The Retail Prices Index inflation declined to 3.9 percent from its previous record of 4.8 percent. The RPI includes mortgage interest payments. Value added tax increased from 17.5 percent to 20 percent which in effect also affected annual inflation rates. According to the UK Prime Minister David Cameron, “Inflation is coming down and that is good news, as the cost of living is the most important issue facing families up and down the country.”
