Mortgage approvals 'on the rise'

The number of mortgages approved for house purchases rose at the end of last year, according to figures from the major UK banks. 

Some 45,897 home loans were approved for house purchases last month, double that of December 2008.  However, the total number approved in 2009 was still 27% lower than 2008, and the lowest since records started in 1997.

Stamp duty

Gross mortgage lending by the High Street banks also rose, from £9.6bn in November to £10.2bn in December. This was 12.5% higher than December 2008, and was boosted - according to the British Bankers' Association (BBA) - by borrowers bringing loans forward before the stamp duty holiday came to an end.

The temporary stamp duty holiday on properties worth between £125,000 and £175,000 ended on 1 January 2010 so buyers will again have to pay 1% tax on the value of homes worth more than £125,000.

"Historically, we would see a drop off in mortgage purchases in December, but with the stamp duty holiday expiring at the end of the year, this has led inevitably to a lot of rushed-through house purchases," said Brian Murphy, head of lending at mortgage brokers Mortgage Advice Bureau.

"What we are likely to see in January and February is an unusually large drop off in mortgage purchases, because sales which would normally have been concluded in the first two months of this year have been pushed through in December."

According to the BBA, the level of those remortgaging remained low in December - at 23,480 - as people continued to choose to move to their lender's standard variable rate (SVR), rather than move to a new fixed-rate deal when their term came to an end.

It remains to be seen whether this trend will continue after a recent move by Skipton Building Society to raise its SVR sharply, and whether this will produce any possible response by other lenders.

Posted at 08:53PM Jan 28, 2010 by Kelly Board in The Economy  |  Comments[0]

H&M Profits climb by 21% due to large expansion

Swedish clothing retailer Hennes & Mauritz (H&M) has announced that their profits have risen by a huge 21% in their final quarter of 2009 to 30 November.  This has been due to the opening of 250 new stores throughout the year, 25 more than originally envisaged.

Those 3 months saw profits hit 6.2 billion kroner (£524m), an increase from 5.1 billion the previous year.  This was in spite of the fact that like-for-like sales fell by 6% in the period.

A statement from H&M representative said that the weak sales figures were due to a ‘mild autumn’ that they claim affected the sales of key products at that time such as coats and heavy knitwear.  They have also stated that they are positive about the coming year with further expansion planned with 240 more stores being opened, taking the total number to around 2230 stores worldwide.

More good news for the company came in the fact that overall net profit for the year was up by 7% as well as pre tax sales also rising by 15% to 16.4 billion kroner.

Further plans for the new year include entering the Israeli market with plans in place to open outlets in Tel Aviv, Jerusalem and Haifa.

Posted at 03:26PM Jan 28, 2010 by Kris Wigfield in The Economy  |  Comments[0]

Crystal Palace Latest

Following on from yesterday's article:-

Finance7 understands that the debt owed to HMRC equates to approximately 5% of the total club debt.  Exact figures cannot be provided until Creditors submit a Proof of Debt form to the Administrators.

On the face of it this would suggest that HMRC will hold little sway when it comes to an eventual vote on a CVA proposal.  However, their share of the vote is likely to be far higher than the aforementioned 5% because some of the reported £30 million relates to football related debts and they will be paid in full under Football League rules and will therefore not be part of the vote.  Furthermore, it is usually the case that certain Creditors will simply not bother to vote, this will again increase the weight of the HMRC vote.

In addition, other Creditors could also vote against any CVA proposal.

The Administrators will be hoping that there are many interested parties resulting in a bidding war.  The more money that is received, the higher the dividend to Creditors and the more likely they will be to accept the CVA proposal.

Posted at 09:22AM Jan 28, 2010 by Kris Wigfield in Sport Finance  |  Comments[0]