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14/04/2008
PM And Chancellor To 'Squeeze' Big Banks
Another type of credit squeeze is about to be applied to the UK's major banking institutions.
Alistair Darling, the chancellor, has called a meeting with the country's biggest banks to urge them to pass on lower interest rates to hard-pressed mortgage holders in return for the billions of pounds of extra funds that have been pumped into the financial system.
The PM, Gordon Brown disclosed the planned summit between mortgage lenders and Darling as he upped the pressure on the banks.
He was calling for them to ease mortgage costs and come clean about any nasty shocks on their balance sheets.
The PM will also host a breakfast with the big banks tomorrow to discuss the wider issues of global market turmoil and regulation before a trip to the US where the credit crunch will be high up the agenda.
Mr Darling's meeting with bank chiefs - around a week later - will be more domestically focused, to discuss what can be done to ease mortgage charges on homeowners and make more loans available for new buyers.
This comes on foot of the Bank of England cutting base rates to their lowest level in more than a year.
However, lenders are likely to argue that the issue is more complicated than headline mortgage offers.
Bankers say mortgage rates have been cut in line with base rates for many customers on variable rate packages and linked products, such as trackers.
Despite three rate cuts since December, banks have struggled to borrow on the financial markets, so have raised charges to many mortgage holders.
New mortgages have also been getting more expensive. Experts predict mortgage rates could rise further, adding to pressure on households already hit with higher food and fuel bills.
Overall, the government is wary of letting the UK economy succumb to the same widespread problems as seen in the US, where the financial sector turmoil has spilled over into the jobs market, manufacturing and consumer spending.
Darling noted that the Bank of England's governor, Mervyn King, has vowed to do whatever is necessary to provide liquidity to the financial system, recently offering £15bn for a further three months.
(BMcC)
Alistair Darling, the chancellor, has called a meeting with the country's biggest banks to urge them to pass on lower interest rates to hard-pressed mortgage holders in return for the billions of pounds of extra funds that have been pumped into the financial system.
The PM, Gordon Brown disclosed the planned summit between mortgage lenders and Darling as he upped the pressure on the banks.
He was calling for them to ease mortgage costs and come clean about any nasty shocks on their balance sheets.
The PM will also host a breakfast with the big banks tomorrow to discuss the wider issues of global market turmoil and regulation before a trip to the US where the credit crunch will be high up the agenda.
Mr Darling's meeting with bank chiefs - around a week later - will be more domestically focused, to discuss what can be done to ease mortgage charges on homeowners and make more loans available for new buyers.
This comes on foot of the Bank of England cutting base rates to their lowest level in more than a year.
However, lenders are likely to argue that the issue is more complicated than headline mortgage offers.
Bankers say mortgage rates have been cut in line with base rates for many customers on variable rate packages and linked products, such as trackers.
Despite three rate cuts since December, banks have struggled to borrow on the financial markets, so have raised charges to many mortgage holders.
New mortgages have also been getting more expensive. Experts predict mortgage rates could rise further, adding to pressure on households already hit with higher food and fuel bills.
Overall, the government is wary of letting the UK economy succumb to the same widespread problems as seen in the US, where the financial sector turmoil has spilled over into the jobs market, manufacturing and consumer spending.
Darling noted that the Bank of England's governor, Mervyn King, has vowed to do whatever is necessary to provide liquidity to the financial system, recently offering £15bn for a further three months.
(BMcC)
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In a bid to curtail the effects of the burgeoning credit crunch, the Bank of England has confirmed a £50 billion cash boost for UK banks. According to leading mortgage lender, Halifax, house prices have fallen by 2.5 per cent in March marking a significant decrease since September 1992.
£50 Billion For UK Banks
In a bid to curtail the effects of the burgeoning credit crunch, the Bank of England has confirmed a £50 billion cash boost for UK banks. According to leading mortgage lender, Halifax, house prices have fallen by 2.5 per cent in March marking a significant decrease since September 1992.
27 July 2009
Darling Tackles Banks On Loan Costs
Lending to small businesses is growing - that's what the UK's leading banks told the Chancellor today. Alastair Darling met with the nation's most high profile institutions this afternoon, and pressed for more details on the financial charges small firms face.
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Lending to small businesses is growing - that's what the UK's leading banks told the Chancellor today. Alastair Darling met with the nation's most high profile institutions this afternoon, and pressed for more details on the financial charges small firms face.
16 September 2008
Darling Calls For Global Effort, Amid Further Market Turmoil
UK Chancellor Alistair Darling has called for a collaborative global effort to stabilise international markets, amid mounting financial pressures being felt across the world. Mr Darling said governments, regulators and central banks should act jointly to combat the current worldwide market turmoil.
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26 September 2013
Mortgage Customers To Be Compensated For Banks Error
Thousands of mortgage customers of Clydesdale and Yorkshire Bank are to be compensated following a ruling that they were treated unfairly. It is understood that the bank miscalculated some 22,000 customers' variable rate home loans, with the customers subsequently paying too little over a four-year period.
Mortgage Customers To Be Compensated For Banks Error
Thousands of mortgage customers of Clydesdale and Yorkshire Bank are to be compensated following a ruling that they were treated unfairly. It is understood that the bank miscalculated some 22,000 customers' variable rate home loans, with the customers subsequently paying too little over a four-year period.
05 December 2008
Prime Minister Urges Banks To Pass Rate Cut On
Gordon Brown has urged banks to pass on the latest interest rate cuts, so customers can feel the full benefits of the 1% reduction. The cost of borrowing was cut by one percentage point, yesterday, pushing the base rate of interest to 2% - the lowest level since September 1939.
Prime Minister Urges Banks To Pass Rate Cut On
Gordon Brown has urged banks to pass on the latest interest rate cuts, so customers can feel the full benefits of the 1% reduction. The cost of borrowing was cut by one percentage point, yesterday, pushing the base rate of interest to 2% - the lowest level since September 1939.
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