PROPOSALS to introduce long-term fixed-rate mortgages will fail, the CML's director general told Sco...
PROPOSALS to introduce long-term fixed-rate mortgages will fail, the CML's director general told Scottish mortgage lenders were told yesterday, according to the Scotsman newspaper.
Michael Coogan, of the Council of Mortgage Lenders yesterday told delegates attending their annual conference in Edinburgh the Chancellor had completely misunderstood the driving force behind the UK market in proposing 25-year mortgages.
The Scotsman quotes him as saying: "Consumers do not find long-term, fixed-rate products attractive because they cost too much," he said, adding that only huge financial inducements from the Treasury - in the form of a tax break - would change public opinion.
Coogan also warned the government against removing the capital gains exemption on sales of first homes, adds the Scotsman.
ASW WORKERS whose company went into receivership and their pension fund wound up may get compensation, after yesterday meeting with Andrew Smith MP, the Secretary of State for Work and Pensions, says the FT.
Former staff which saw in some cases saw their pensions cuts from £15,000 a year to £4,000 when the company went into receivership met with the minister, who in turn asked his experts to discuss proposals in more detail.
The Pensions Action Group says it would cost the government £64m a year for 40 years to meet their pensions in full, while the fund has enough to finance pension payments for the next 10 years.
THE FINANCIAL SERVICES AUTHORITY has criticized institutions and financial services support firms for failing to take enough measures to fraud from occurring, says the Daily Telegraph.
Carol Sergeant, managing director of the Financial Services Authority, told a symposium on economic crime at Jesus College, Cambridge that firms operating in the financial sector are far from organised when it comes to fighting because most firms fail to treat it seriously enough.
As well as increasing discussions with the relevant judicial authorities, the FSA is now working with a group of insurers and banks to encourage industry-wide research in problem areas.
AND AVIVA, the group behind life insurer Norwich Union, is planning to raise £1.2bn through the issuance of subordinated debt, in an attempt to strengthen its capital position and fund new growth, says this morning's FT.
Despite raising extra capital, the FT says analysts are happy about the deal because they are increasing assets through debt rather than a share issuance, and some of the assets are being used to restructure other debts.
It's a practice that many banks and insurers are adopting while interest rates are so low, as Prudential showed in June when it raised £1bn in the Asian debt markets.
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