Morgan Stanley And The Rogue Trader

Nationwide to raise mortgage age limit to 85 years

09/05/2016 Nationwide has announced that they will be increasing that age limit for paying off a mortgage to 85 years old, as of July. The changes will mean that somebody aged 65 years old could take out a 25-year mortgage, as long as they can demonstrate that they would be able to afford the repayments. The building society has said that these changes are being introduced as a response to growing demand for mortgages from older people, who have faced difficulties in getting onto the property ladder. Tougher mortgage checks were introduced as a result of the financial crisis, but this has made it particularly difficult for middle-aged people to get accepted for a mortgage...

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Thieves using identity of dead homeowners in scams

06/05/2016 New research has revealed that fraudsters are impersonating homeowners who have recently died, or solicitors, in the hope of stealing money in mortgage transactions. The number of thieves using the identities of those who are deceased to make mortgage applications to lenders is increasing, Experian said. More commonly, fraudsters are mimicking solicitors to trick buyers into putting a deposit in to the fraudsters account. This money, which is usually large sums, is rarely refunded by the banks. According to the City of London Police fraud investigators, the average loss to this fraud across England and Wales is £112,310. The type of fraud in which a deposit..

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UK construction activity falls to three-year low

04/05/2016 Growth in the United Kingdom construction sector fell to the lowest rate in nearly three years in April, as uncertainty over the result of the EU referendum and the stagnation of new business hit productivity. According to Markit, the trend is likely to continue into the coming months as uncertainty over the wider economy remains in place. Housebuilding was the only slight positive in the construction sector, rebounding from its 38-month low in March, while at the other end of the scale, commercial building dropped to its slowest growth rate since July 2013, according to Markit. Outside of construction, Markit also recognised that employment growth fell to one of..

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Warnings that Universal Credit is veering off track

03/05/2016 A think tank has warned that the government’s flagship benefit reform has ‘serious design flaws’ and has ‘veered off track’ because of cost-cutting. According to the Resolution Foundation, Universal Credit could leave 2.5 million families worse off, with some by more than £3,000 a year. The warning comes as the government announced a further expansion of the scheme. Stephen Crabb, Welfare Secretary, said the benefit payment was ‘transforming welfare’ and getting people into work faster. Universal Credit aims to provide incentives for people to move off benefits and get into work. They have replaced six current benefits, including Jobseekers..

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MPs criticise the government Right to Buy extension plan

29/04/2016 MPs have sharply criticised the governments plan to extend the Right to Buy to Housing Association tenants which has proven to be a controversial matter. A report from the Public Accounts Committee (PAC) has questioned how the policy will be funded and asked whether proper replacement homes will be built. The MPs have also stated that there was evidence that Right to Buy could increase overcrowding for those in housing need. The government has said that they make no apology for encouraging home ownership. The idea of the scheme proposed by the government is to allow Housing Association tenants to buy their own homes with discounts similar to those that are..

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UK house prices growth slowed down during April

28/04/2016 Following the surge of buying houses in March, the UK house price growth has slowed down this April, according to statistics released by Nationwide Building Society. In April, the annual pace of house price growth slowed to 4.9%, compared with 5.7% in the month before. House prices rose by just 0.2% in April alone which is the lowest monthly increase we’ve seen since last November. Nationwide’s research has shown that the number of property sales in March hit a record high as many landlords rushed to buy in order to beat the rise in stamp duty. Robert Gardner, Nationwide’s chief economist said: "It may be that the surge in house purchase activity..

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Over 230,000 withdraw money from pensions

27/04/2016 Over 230,000 people have withdrawn money from their retirement savings, since pension freedoms were introduced a year ago. In April 2015, the government introduced a range of pension freedoms to allow anyone aged over 55 to take money out of their pension pot, and only pay income tax. Prior to April 2015, those looking to withdraw money from their pension had to pay a 55% tax charge. Since the freedoms were introduced, the Treasury has suggested that 232,000 people withdrew around £4.3bn from their retirement funds. These figures include those taking flexible drawdown, where a person takes a regular income from their savings, which would remain invested. Annuities..

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Ofgem’s investigation shows how Scottish Power failed its customers

26/04/2016 Energy industry regulator has today announced its results of a recent investigation into Scottish Power, which found the firm’s billing, complaint resolution and call handling at inadequate levels. As a result of their findings Scottish Power will have to pay out £18m for their failings. The pay out, which is the third-largest penalty by the regulator, will be paid to vulnerable customers and charity. Ofgem advised that Scottish Power had failed to treat its customers fairly. More than 300,000 customers received late bills, which resulted in many turning to Citizens Advice for help. In some cases debt collection practices were started by Scottish Power for a bill..

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Study reveals fathers earn 21% more than childless men

25/04/2016 A study has found that fathers out-earn childless men by more than a fifth, whilst the effect is reversed for mothers. The study was commissioned by think tank IPPR for the Trade Union Centre (TUC), and was based on 17,000 people. One of its main findings was that fathers who work full-time earn an average of 21% more than their childless male counterparts. It was also found that fathers with two children earned 9% more than those with just one. However, female full-time workers with a child appeared to be penalised, as the study found that mothers with full-time jobs earned an average of 11% less than those without a child. While the reasons for the “fatherhood..

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Significant risk to pensioners who choose to sell their annuities – FCA

22/04/2016 Come April 2017 when the market for selling an annuity opens, the City regulator, the Financial Conduct Authority has claimed that many pensioners will be at significant risk if they opt to sell their retirement income for a lump sum. An estimation has been provided by the government that 30,000 people are expected to cash in their pension products when the changes begin. In response to the concerns the Financial Conduct Authority (FCA) has collated risks and potential dangers associated with selling retirement incomes. Some of the concerns include pensioners calculating good value for their annuity, the exposure and susceptibility to scams, and pressure being placed on..

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5,000 victims fooled by fraudsters during 2015

24/04/2016 It has been reported that more than 5,000 people were conned by fraudsters last year into sending planned payments to false bank accounts. Those who became a victim to the scam were tricked by emails, which required them to transfer money into the accounts of criminals, leaving the actual and genuine recipient unpaid. Police figures show that 5,480 similar cases were recording during 2015 compared to 3,206 the previous year. The scam, also know as ‘mandate’ or ‘invoice’ fraud is up 71% on 2014 figures. Total loses throughout the UK were £126 million. Police advice Police have advised that people need to be cautious of any persistent emails that suggest..

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High street sales dip by 3.9% due to recent cold weather

18/04/2016 UK high street sales have reported a 3.9% decrease during March compared to the previous year as online shopping proves to be a popular alternative during the recent cold snap. The latest figures have shown that the numbers of shoppers hitting the high street has decreased with footfall falling by 2.7%, the British retail Consortium (BRC) and Springboard have said. In response to the latest figures chief executive of the BRC, Helen Dickinson, has said: “The near four per cent decline in footfall on our high streets and in shopping centres is partially caused by the distortion of the timing of Easter. “It is, however, also a continuation of a longer term trend..

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Fall in wholesale energy costs creates call for price cuts

13/04/2016 UK gas and electricity wholesale prices have dropped to their lowest level in almost a decade which has sparked calls for suppliers to cut bills by 10%. Data from ICIS Power Index, which analyses energy markets, found that the prices have averaged at nine-year lows over the first quarter of this year. The big six energy firms (British Gas, EDF Energy, E.ON UK, npower, Scottish Power, and SSE) have cut gas bills by just over 5% this year, but not electricity charges. The comparison website, uSwitch told suppliers to reduce the standard tariffs by a further 10% in light of the new figures. Ann Robinson, a director of uSwitch, said consumers had been..

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Tesco to offer Sainsbury’s Brand Match to customers

11/04/2016 Tesco has announced that it will offer customers who have valid Sainsbury’s Brand Match money-off vouchers a two month extension to the scheme which is due to end on 26th April. This will mean that any customers who still have the vouchers after they have expired in Sainsbury’s will be able to use them until 30th June in Tesco. Last week Sainsbury’s announced that it would end the scheme that allows customers who have bought cheaper branded goods at to recoup the difference in shopping vouchers, after running the promotion for five years. This gives customers who already have the vouchers, or who receive them over the course of the fortnight, just two weeks to..

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EU vote could slow house price growth

08/04/2016 House price growth in the UK could slow down due to the uncertainty of the EU referendum, according to the Halifax. The lender claimed that property prices in the UK have increased by 10.1% over the past 12 months, which means that the average residential property is now worth £214,811. However, the mortgage lender has suggested that this growth could be set to slow down, because of the possibility of the UK leaving the EU when the referendum is held on the 23rd June. They also said that “worsening sentiment” towards the UK economy could be a factor in any downturn. Additionally, only parts of the UK are registering significant growth, according to the Office..

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Tax credit repayment rate could cause ‘financial hardship’

07/04/2016 Families could face “serious financial hardship” under new rules around overpaid tax credits, according to campaigners. Households that earn over £20,000 will be required to repay overpaid tax credits back at a much faster rate than previously. Claimants are often overpaid tax credits as they are calculated on a person’s income from the previous tax year. Because of this, changes in individual circumstances can affect how much a person is entitled too, for example if they receive a pay rise. In the past, repayments were made by reducing a persons tax credits by a maximum of 25%. Under the changes that recently come into force, this has now been increased by..

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Fixed mortgage rates fall to record lows

04/04/2016 Mortgage rates for two and three year fixed rate loans have fallen to record lows in February, according to research by the Mortgage Advice Bureau. The average rate for a two-year fixed rate mortgage fell to an all time low, from 2.56pc to 2.54pc, when compared to the previous month. A similar trend was also recorded for three-year fixed rate mortgages, which fell from 3.01pc to 2.92pc in the same time period. Additionally, five-year fixed rate mortgages fell from an average of 3.27pc to 3.25pc, which is just above the record low of 3.24pc recorded in August 2015. Mortgage lenders generally set their rates based on the predicted base interest rate, which is set by the..

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Lifetime ISA: Government urged to clear “muddy waters”

31/03/2016 The Chancellor has been told to urgently establish an independent pensions review after confusion over the role the Lifetime ISA has in pension savings has “muddied the waters”. Scottish National Party MP, Ian Blackman, called for the Tories to provide more information to savers about employer contributions and the potential dangers to retirement savings that sacrificing a workplace pension scheme for the Lifetime ISA could present. Blackford raised the concern that he feels that the introduction of the Lifetime ISA takes some attention away from the need to save enough for a secure retirement income, after NOW: Pensions released figures related to consumer attitudes..

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Landlords to face tougher mortgage affordability tests

29/03/2016 The Bank of England will try to cool the UK housing market by introducing tougher borrowing standards for buy-to-let investors, with the Bank hoping that this will prevent the market from overheating. The Prudential Regulation Authority (PRA) which regulates the mortgage market, said that action is required in order to ensure that underwriting standards from lenders do not slip, as they expect to substantially grow the number of buy-to-let investors on their books. Buy-to-let lending has increased ahead of the normal market rate in recent months with the 3 per cent stamp duty increase looming, but the PRA indicated that lenders expect a further 20 per cent growth in..

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Rudd: Leaving the EU could push up bills

24/03/2016 Energy bills could rise by more than £500 million by the 2020s if Britain left the EU on 23rd June, according to Amber Rudd, the UK’s energy secretary. In an upcoming speech in Kent, Ms Rudd will claim that staying in the EU has kept household energy bills down, providing access to cheap electricity from the continent, along with facilitating billions of pounds of investment in the UK's energy network and supply chain. In her speech, she will argue that the Britain vote to leave the European Union would result in a massive electric shock to the UK due to skyrocketing energy costs. If Ms Rudd’s claims are correct, it would mean energy bills would rise by more..

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