Low level of mortgage approvals points to further gloom for housing market
The number of loans for house purchase rose 8 per cent on March but levels remained 2 per cent below April 2010. Remortgage completions fell 28 per cent from the previous month.
Mortgages for first-time buyers increased by 7 per cent in April although the average loan-to-value crept up 1 per cent to 80 per cent.
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Hide AdMeanwhile, Santander cut up to 0.3 per cent off selected two and three-year fixed mortgages. Reduced rates include a two-year remortgage product at 4.69 per cent with a 15 per cent deposit and 995 fee and a three-year homebuyer deal at 3.79 per cent with a 30 per cent deposit and 495 fee.
The Post Office lowered selected fixed, tracker and buy-to-let rates by up to 0.64 per cent. The provider made significant reductions to its higher loan-to-value products which start at 5.39 per cent fixed for two year, down from 5.75 per cent, with a 10 per cent deposit and 995 fee.
Leeds building society extended its fees-assisted two-year discount mortgage to borrowers with smaller deposits. The product, which charges a 199 fee, is available at the existing rate of 2.8 per cent with a 25 per cent deposit, and at new rates of 3.4 per cent with a 20 per cent deposit and 3.9 per cent with a 15 per cent deposit.
Yorkshire building society lowered the deposit on its drop lock tracker mortgage to 10 per cent. The mortgage charges base rate plus 3.49 per cent and customers have the option of moving to a fixed rate at any stage during the product's three-year term.
Retailers feel the pinch
High fuel prices and job uncertainty pushed retail sales down 1.4 per cent in May, according to the Office for National Statistics. Food retailers Tesco and Sainsbury's also reported subdued UK sales, blaming rising fuel costs and a cautious consumer environment.
Separate ONS data showed that Consumer Price Index inflation remains at 4.5 per cent, more than twice the Bank of England's target of 2 per cent.
Scam 'HMRC' alert
HM Revenue & Customers is warning taxpayers to watch out for phishing emails sent out in the run-up to the tax credits renewal deadline. The email claims a tax rebate is due and directs the recipient to a cloned replica of the HMRC website which asks for the victim's credit or debit card details. More than 46,000 phishing emails have been reported since the first forms were sent out in April. HMRC has shut down 150 scam websites.
New Post Office bonds
The Post Office launched two new inflation-linked bonds paying retail price index plus 1.5 per cent for five years or plus 0.5 per cent for three. The rate of return is based on the annual RPI as measured in August. The bonds are available until 2 September 2011.