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Home loan figures up

Latest information on net lending figures in May from the Major British Banking Groups (MBBG) have been revealed today.Figures show that gross mortgage lending was up two per cent on April, but eight per cent lower than the same period last year.In addition, May saw 186,442 mortgages approved, worth £16.5 billion.

Loans and overdrafts were also up on April’s lending, although credit card borrowing was weaker than the last six months.BBA director of statistics, David Dooks, said: “Whilst mortgage lending was slightly stronger in May, it is noticeable that all measures were below comparable data a year earlier, when May was a relatively weak month.”The MBBG make up around two-thirds of all mortgage lending outstanding and around 70 per cent of gross lending.

Posted in home equity loan, home loan, loan, loan calculator, home equity loan rate, loan rate, home equity loan comparison, interest only loan, home equity loan bankruptcy, home purchase loan, home finance, loan finance, home loan finance uk | Comments(0) October 2007



Home loan interest rates: Real estate sector set to consolidate

Indian real estate sector, the growth of which has been constrained by rising interest rates and falling inflow of funds, is now set to consolidate, industry experts feel.

“For big developers there is no impact of rising interest rate but small players are finding it difficult to raise money for their proposed projects. They would need to sell their projects to big developers,” said, Ansal API Vice-President (Marketing) Kunal Banerjee, was quoted in a Business Standard article. Distress sale of projects is already happening, he said, adding the industry would witness more of it in days to come.

Seeking to check excessive capital inflows in real estate sector, the government last month decided to bar developers from raising money abroad to develop integrated townships.

Though tightening of External Commercial Borrowing (ECB) norms was related to only integrated townships, the spill-over effect is felt across the sector.

Besides, RBI has raised risk weights on housing loans, followed by interest rate hikes to curb demand in the sector.

Edelweiss Capital Senior Vice-President George Mathew was also quoted as saying that RBI is squeezing all sources of funds gradually to rein in inflation and a possible correction in this sector could be in the offing.

“Higher funding cost is expected to reduce attractiveness of real estate projects, reduce the land banking run and bring prices down,” he said, adding debt financing is not available for land acquisition.

Posted in Uncategorized, home loan, loan, home improvement loan, loan rate, home owner loan, interest only loan, mobile home loan, home purchase loan | Comments(0) July 2007