Jitters for Mortgage Lenders

Daily Mail (London), September 9, 1997 | Go to article overview

Jitters for Mortgage Lenders


Byline: SHIRLEY SKEEL

YOU might think with this rapidly reviving housing market that mortgage lenders would be having a whale of a time handing out money.

In fact, it is tough for them.

Moody's Investors Service points out that though house prices have jumped dramatically in some areas, the volume of UK house sales has risen only slightly over the past year.

Its 'increasingly cautious' view of the long-term outlook for selected UK mortgage lenders sent a shiver through the sector, nudging Alliance & Leicester back 13p to 647p, Halifax 12p to 714p, Abbey National 4p to 871p and Woolwich 1 / 2 p to 316p.

Moodys predicts fierce competition will drive margins even lower, while the pool of customers will be limited by banks' tougher lending criteria.

Broker Dresdner Kleinwort Benson also threw in a cautious note. It says mortgage margins have slid almost 5pc in a year.

Costly 'giveaways' like cashbacks are going out of fashion, but this could reverse if the economy slows next year, warns analyst Simon Samuels. An overnight recovery in Asian markets failed to dispel the generally cautious mood of the market after Friday's 44-point fall on Wall Street.

New York opened buoyantly after lunch, lifting the Footsie off its low.

In rather dull, thin trade, the UK index closed down 9 points at 4985.2.

Economic figures did not help. UK manufacturing output, up 0.4pc in July and up 1.6pc over the year, was stronger than expected. A 2.3pc rise in annual industrial output also beat expectations.

Deutsche Morgan Grenfell economist Ciaran Barr said output growth could be holding up better than thought. He still expects the Bank of England Monetary Committee to leave interest rates unchanged at this week's meeting.

UK gilts followed Continental bonds higher, finishing over 1 / 3 point better. Sterling edged down 1 / 3 cent to $1.5823 and slipped marginally against the German mark to Dm2.8646.

Star of the day was British Aerospace. It flew 31p to 1567 1 / 2 p on unconfirmed reports that it will announce a [pounds sterling]300m-plus flotation of its Arlington property arm when it reports interims this Thursday.

Broker SG Strauss Turnbull fanned the buying spree by recommending a switch from Rolls-Royce to BAe. Analyst Andrew Crispin says margins at Rolls-Royce (up 2p to 230p) are being squeezed, while BAe offers secure earnings and dividend growth. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Jitters for Mortgage Lenders
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.