|
A recent report by the Organisation for Economic Cooperation and Development (OECD) suggests that the recession has reached a bottom. OECD, who represent the 30 most industrialised nations estimates that these economies would shrink by 4.1% this year. The OECD stated that recovery would be 'weak and fragile, and the economic and social damage caused by the crisis will be long lasting'. Zero growth is predicted for the UK economy in 2010 and output is expected to decline by 4.3% this year. Output for the world economy as a whole is expected to decline by 2.2%. |
|
|
The Association of British Insurers have warned that the recession will mean an increase in fraudulent insurance claims. Official figures showed that insurance fraud increased by 30% in the past year totalling £730 million.
Fraudulent household and motor claims were the highest with motor claims accounting for £360 million. One case involved a man who reported his car stolen from a car park. He later admitted that he pushed his car over a cliff and was planning to use the insurance payout to repay debts. Fraudulent claims add £40 to the average insurance premium. |
|
Take up of fixed-rate products increased further as the interest rate cycle has now reached its floor, according to new data from the Council of Mortgage Lenders. In April, 69% of borrowers took out fixed rate mortgages with an average rate of 4.83%, the highest share since June 2008. There was a modest improvement in the number of loans for house purchase. However, activity is still very low by historical standards with 35,600 house purchase loans in April, compared to an average of 88,000 loans in April over the last seven years. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 98% of all residential mortgage lending in the UK. There are 11.1 million mortgages in the UK, with loans worth over £1.1 trillion. |
|
|
Thursday, 11 June 2009 07:34 |
|
Shareholders of the partly nationalised Lloyds Banking Group have strongly supported a rights issue buying 87% of new shares that were offered. This share issue had been backed by the government who had promised to buy any unsold shares. This means that government stake will remain at 43%. If the share issue had failed the government would have been the majority shareholder and would have owned 65%.
Lloyds Banking Group merged with Halifax Bank of Scotland in September 2008 in a government backed deal. HBOS made a pre-tax loss of £10.8 billion in 2008. |
|
Research conducted by the University of Ulster has shown that house prices fell by 10.8% in the first three months of this year and are already at the pre-property boom prices. The average house price in Northern Ireland is now £157,000.
Many experts still believe that prices have not yet reached a bottom. Detached bungalows and semi-detached bungalows were the worst affected by the house price drop with prices falling by 15.4% and 14.5% respectively over the three month period. Detached houses performed much better with prices only falling by 1.8% over the same period. |
|
|
<< Start < Prev 1 2 3 4 Next > End >>
|
|
Page 4 of 4 |