Andy Hornby, the boss of Britain's biggest mortgage lender HBOS, predicted yesterday a "fundamental shift" in the lending markets that will leave homeowners paying considerably more for new loans than they have in recent years, The Independent reports.
"Looking forward, we can already see that mortgage pricing is starting to adjust to reflect increased wholesale funding costs," he told a banking conference in London. "Increased mortgage costs to consumers will inevitably lead to a slowdown in the mortgage market."
Recent weeks have already seen price increases in some types of mortgages, particularly tracker products, offered by Abbey, Alliance & Leicester and Nationwide as well as HBOS's Halifax business. These loans are closely reliant on the short-term money markets, where lending rates have soared above the Bank of England's base rate.
FINANCIAL INFORMATION BILLIONAIRE Michael Bloomberg has warned that both London and New York will be hit if a continued downturn in financial services occurs as a result of the global credit crisis, according to The Telegraph.
Mr Bloomberg speaking in his capacity as the Mayor of New York, urged the need for caution in both cities' economies. "London and New York are both very dependent on financial services. If financial services slows down, we're all going to feel some pain," he said.
Mr Bloomberg speaking in his capacity as the Mayor of New York, urged the need for caution in both cities' economies
"I keep warning people that we need to be more cautious. You just have to understand we've had a number of years of continuous growth, and nothing rises forever."
BAA, WHICH HAS a monopoly on operating Britain's largest airports, has been criticised strongly by the Competition Commission today for overcharging airlines and failing to deliver acceptable levels of passenger service at Heathrow and Gatwick, The Times reports.
The regulator said that BAA, which was bought by the Spanish construction Grupo Ferrovial this year in a debt-ladened £16 billion, charged passengers more than its levels of service justified.
It said that the airports had "acted against the public interest" by failing to manage security queues to avoid "unacceptable delays to passengers".
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