Darling – I underestimated the severity of the recession
“It's worse than we thought,' he said in an interview with The Sunday Times, signalling the Government was preparing a marked downgrade for the country's economic prospects in this month's budget.”
http://tinyurl.com/ccaajz

FSA to cap mortgage borrowing?
Interesting article in the Telegraph re income multiples for mortgage calculation purposes. Looks like when the brakes finally come off they still might be binding a tad... Lord Turner, chairman of the Financial Services Authority, will also declare a ban on 100 per cent mortgages....
http://tinyurl.com/cmfw3d

What does the last housing recession tell us about this one?
Given that the current downturn in activity and prices is sharper than in the early 1990s, does this mean its duration will be longer or shorter than last time?...
http://tinyurl.com/cpkmmc

Vorderman quits slump-hit property firm
TV star Carol Vorderman has become the latest victim of the credit crunch after a property company she fronted was forced to start winding down. The former Countdown presenter and her agent attended a crisis meeting with executives at Carol Vorderman Overseas Homes last week, telling them they were no longer willing to have her name and face associated with the firm....
http://tinyurl.com/ddw35f

Mortgages to cost more after crackdown
Millions could face higher mortgage and loan charges under sweeping reforms of the banking industry designed to prevent a repeat of the financial crisis. The chairman of the City watchdog vowed yesterday to come down hard on High Street banks, whose reckless lending has brought the economy to its knees....
http://tinyurl.com/dlwvb5

Nationwide raises mortgage tracker rates
Nationwide Building Society announced plans to increase some of its mortgage rates by up to 0.3% today. The lender has repriced its two-year tracker mortgage for people remortgaging with a 40% deposit to 3.93%, up from 3.63% previously...
http://tinyurl.com/cm8toz

House prices 'could drop another 55%'
House prices 'could drop another 55%, a respected City forecaster warns. It also predicts a deep recession lasting throughout next year and a 'very real probability' that Britain will go bankrupt. The report leaked yesterday from financial analysts Numis Securities says that the collapse in house prices is not 'anywhere near over'....
http://tinyurl.com/chhdz4

Virgin eyes a return to mortgage market
Virgin Group is preparing for a return to the mortgage market and wants to obtain a licence to become a High Street bank, billionaire founder Sir Richard Branson has revealed....
http://tinyurl.com/co7wdp

Interest rates could go back up quickly
The Bank of England's chief economist warned today policymakers will hike interest rates back up with 'vigour' when needed to keep inflation in check. In a speech to insurers, Monetary Policy Committee member Spencer Dale stressed the Bank's focus will remain centred on the need to keep inflation on track with the Government's 2% target...
http://tinyurl.com/c3ka7t

Five-year fix is back as lenders look to future
Five year fixed-rate mortgages are making a comeback as lenders judge base rate to be at or near rock bottom. Abbey is offering a five-year fix at 3.95% with a £995 fee for borrowers with a 40% deposit. It means someone borrowing £150,000 over 25 years on a repayment basis would pay £788 a month. Total cost over the five years is £48,252, according to London & County. HSBC also has a competitive 3.99% for a five-year fix for those with a deposit of 40pc. It has a £999 fee and would cost £792 a month on the same loan basis. Total cost over five years is £48,454...
http://tinyurl.com/ddqfth