Credit crunch on the way for the UK ?

More signs of credit tightening.

Following yesterdays decision to abandon lending for 'buy-to-let' on newbuild flats by mortgage broker 'The Mortgage Works', the Portman Building Society, has today announced a similiar decision.

Along with the big banks agreeing to share data to prevent people from borrowing too much on credit cards from different providers, the removal of 0% credit card deals, and the introduction of balance transfer fees to deter the "rate tarts" it looks like the credit cycle may be turning and tightening is on the way.

What chance a credit crunch in the foreseeable future ?........................

Financial Times

Portman refuses to lend on buy-to-let new flats

By Jim Pickard,Property Correspondent. Published: December 7 2005 21:58 | Last updated: December 7 2005 21:58

The Portman Building Society on Wednesday became the first lender in the UK to refuse buy-to-let mortgages on new flats in a sign of growing fears about the stability of the sector.

The Portman, third largest buy-to-let lender in the UK, said it would avoid lending on new properties until "the market forces of supply and demand" had returned to equilibrium......

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Reply to
Crowley
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Debt fears weigh down on bank stocks......

Financial Times

Lending arrears worries weigh on FTSE By Michael Hunter Published: December 8 2005 08:41 | Last updated: December 8 2005 08:41

London equities markets slipped lower in opening trade on Thursday, as worries about the extent of personal lending arrears at Royal Bank of Scotland outweighed gains for PartyGaming after an upbeat trading statement................................

.....Royal Bank of Scotland's shares fell 1.8 per cent to £16.81 after it said it was too early to be certain that arrears from unsecured personal loans had peaked, despite signs that the rate of bad debts was levelling off.

The news from the second biggest player in the sector weighed on the rest of the high street banks after their recent sustained rally. HBOS lost 1.1 per cent to 915p whilst HSBC fell 0.8 per cent to 921p. Barclays fell 0.8 per cent to 599p and Lloyds TSB was 0.4 per cent lower at 483.5p.

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Reply to
Crowley

The Mortgage Works are a lender, not a broker, and it's hardly surprising Portman did also, TMW is Pormans 'specialist' lending arm.

Reply to
Matt Robertson

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