I'm a pro union although technically scottish being born here not into the Brave heart mentality of hundreds of years ago, you have to move on, if I was English I would be sick of the bleeding heart poor scots, it's a bit worn out! Anyway, heavens forbid but if independence beckons it surely will result in higher interest rates and a number of companies like Lloyds, RBS, Standard Life and others relocating down South and who would blame them. Pensions, new state agencies being set up, spiralling taxes to pay for them, await the future with trepedition! Hope to God there's some news on a dividend, feels like the curse of the ancient mariner! Nothing but bad news, the abysses! But, onwards and upwards! Tomorrow's a new day everyone, plonkers or not!
BUSINESS COMMENT: Britons give the thumbs up to Carney
BANK of England Governor Mark Carney and colleagues have had their critics among parliamentarians, being likened to an "unreliable boyfriend" with regard to hints on future interest rate rises. But they will take heart from the results of the Bank's quarterly survey of 2,000 Britons last month showing a net balance of people that are satisfied with the way it is doing its job to set interest rates to control inflation at plus 30 per cent.
The penny is also starting to drop that consumers will have to get used to higher borrowing costs, most likely sometime in the first half of 2015. Forty-nine per cent of people now expect interest rates to increase from record low levels over the next 12 months, the highest proportion in over three years compared with 42 per cent in May.
They also seem to be buying into the Bank's message that when rates do rise, they will do so more gradually than in previous cycles.
Given the importance of consumer spending to the UK's wider economic health and the continuing squeeze on disposable incomes, the importance of managing people's expectations cannot be overstated.
Average UK house price to hit £780,000 by 2040, says leading think tank
Prediction: The Policy Exchange said the average house will cost £780,000 in 26 years time The Policy Exchange calculated that the average first-time buyer, currently aged 32 years old, will be paying nearly £800,000 for a home in 26 years time
"Faced with the increased costs and difficulties they might simply decide not to lend in these circumstances," she said.
Mortgage broker Mark Harris of SPF Private Clients, said: 'A buy-to-let is an investment, whether the property was inherited, a let-to-buy or purchased independently, and should be treated as such. Regulating some buy-to-let loans but not others will add another layer of cost and confusion for lenders, brokers and borrowers alike."
Blow for 'accidental landlords' as EU rules threaten to kill off 'let to buy' mortgages
People who want to let their former homes even for short periods may be denied mortgages, thanks to an EU directive
Homeowners who become "accidental landlords" - because they need to relocate for work or because they can't sell their property, for example - could find it harder to get a mortgage, thanks to European legislation.
The Treasury today indicated that if lenders are going to abide by the new European Mortgage Credit Directive, a necessity by 2016, certain types of landlord mortgage will face tougher regulation.
This could mean that banks simply refuse mortgages in these circumstances.
Currently, buy-to-let mortgages fall outside the regulation which applies to mainstream, owner-occupier mortgages. This is why older people can obtain landlord loans, for instance, and why the latter are also available on an interest-only basis even where there is no plan in place for the repayment of the capital borrowed.
The distinction has arisen because landlords are generally viewed as "business" borrowers, requiring less supervision. Owner-occupiers are viewed as "consumers" requiring more protection through tougher regulation. "Riskier" forms of lending have been all but banned under rules applying to owner-occupier mortgages. Under current rules if a homeowner decides to let their property for whatever reason - perhaps because they cannot sell it, or want to wait to sell it at a later date - the normal process is to switch over to a landlord loan, which most existing lenders will permit. This is often referred to as "let-to-buy".
In future this looks unlikely to be allowed by many lenders. In a document published today, the Treasury has said there will be circumstances in which certain landlord lending will be viewed as "consumer" lending and should there fore be regulated more tightly.
The Treasury said: "There are some situations where borrowers do not seem to be acting in a business capacity. Examples of this may be where the property has been inherited or where a borrower has previously lived in a property, but is unable to sell it so resorts to a buy-to-let arrangement. In these cases, the borrower is a landlord as a result of circumstance rather than through their own active business decision."
Banks and building societies, as well as mortgage brokers, have responded angrily to the idea of even more regulation where "there is no obvious consumer need".
The Council of Mortgage Lenders, representing the mortgage industry, said the regulation the Treasury now proposed "is based not on any evidence of a need for additional consumer protection, but purely on ensuring that the European legal requirements are met."
A spokeswoman added that lenders might in many cases struggle to distinguish between "consumer" la
Maybe your right and all the problems in Europe will just melt away, personally I'm not so sure, one thing is for sure, I wouldn't want to be holding a long pound position this weekend, it could go into free fall Monday after tonight's scottish poll
Have no fear about Europe. The EB has prepared the way for QE by warming the bell and lowering interest rates to a fraction above absolute zero. The next step will be QE, not could be but WILL be. Drhagi will pump whatever it takes to prevent Italy, Portugal et al from leaving the zone. 1.5 TRILLION has already been quoted. NOTHING, repeat NOTHING will destabilise the EU, it is in the DNA of every European politician. Watch and learn, watch and learn...........
Reporting a poll suggesting the yes campaign now have a lead, surely the scots aren't going to go it alone?, as far as the markets go the real problems I feel are going to continue to be in Europe for the foreseeable future, way too much unemployment in Spain and greece and banks not lending so little chance for businesses to grow, just wondering how long until fear becomes panic there again because throwing cash at it isn't working, the trouble is that Europe has the ability to drag us all down again, and the markets aren't budging, strange times
there's a difference between a mess and "they have problems,ok you have high debt and growing it china,you have sky high inflation in brazil,but with those problems and probably more,the plus's outway the negatives atm. relatively high gdp growth in all of them(even tho they are slowing,which is the main indicator,us stockmarkets in a bull cycle.us dow transports at an all time high,us fuel independency(nearly) bond markets at record lows,us corporates sitting on a $4 trillion cash pile,uk on a shedload aswell,around a trillion I think,maybe a bit less,but like your probably gonna say,the markets are wobbling atm and the china pmi;s have been dropping for the last six months. but on the whole,it aint looking like a crash,just the eurozone starting to drag everything down a tad,will it get worse?who knows.
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