The bank boasts that it has helped 50,000 people with mortgages this year – although [...]]]> People coming to the end of their zero per cent deals might have seen the Lloyds TSB family are back on our screens again, narrated by Julie Walters telling people wanting to discuss mortgages to drop in and have a chat.

The bank boasts that it has helped 50,000 people with mortgages this year – although out of a total of a million mortgages taken out in the past 12 months, according to the Council of Mortgage Lenders, that is just 5pc.

Borrowers will be a step closer to taking up the advert’s offer when they hear about the 2.99pc two-year fixed-rate mortgage Lloyds has just launched. But don’t assume that you will qualify. It is more of a marketing gimmick than a product for the masses.

Don’t take my word for it: Lloyds as good as admits this itself in a letter to branch staff.

The letter says: “2.99pc is a fantastic market-leading rate and a great tool to start a conversation with customers about a mortgage. The mortgage, which does have a higher fee, should be used in branches to drive additional appointments. 

Speaking a year after the collapse of Lehman Brothers, the US investment bank, Mr Greenspan said: “The crisis will happen again but it will be different. They (financial [...]]]> Alan Greenspan, the former US Federal Reserve chairman blamed in some quarters for not doing enough to prevent the financial crisis, has predicted that more crashes are inevitable.

Speaking a year after the collapse of Lehman Brothers, the US investment bank, Mr Greenspan said: “The crisis will happen again but it will be different. They (financial crises) are all different, but they have one fundamental source,” he told the BBC. “That is the unquenchable capability of human beings when confronted with long periods of prosperity to presume that it will continue.”

He added that, although the current crisis was triggered by the trade in US sub-prime mortgages, any factor could have been the catalyst. “Something sooner or later would have emerged”, Mr Greenspan said.

The former US central bank chief claimed that the world’s financial institutions should have foreseen the looming crisis. “The bankers knew that they were involved in an under pricing of risk and that at some point a correction would be made,” he said. “I fear too many of them thought they would be able to spot the actual trigger point of the crisis in time to get out.”

He also warned that Britain would be harder hit than the US by the current recession and collapse in world trade.

“Obviously we’ve both suffered very considerably but … Britain is more globally oriented as an economy and the dramatic decline in exports globally and trade generally following the collapse of Lehman Brothers had dramatic effects in the financial system of Britain,” Mr Greenspan said. “It’s going to take a long while for you [Britain] to work your way through this.”

But he cautioned that the path to recovery should steer clear of protectionism as applying strict regulations could hamper recent developments that have opened up global trade. “The most recent endeavour to re-regulate is a reaction to the crisis. 

The year on year drop in industrial production is the biggest drop since the series began in 1968. The year on year drop in manufacturing [...]]]> UK manufacturing and Industrial production data has been released this morning- both slightly better numbers than expected but that still does not hide the fact that it is grim reading.

The year on year drop in industrial production is the biggest drop since the series began in 1968. The year on year drop in manufacturing output is the biggest since Jan 1981.

Comments from ECB members suggest that the ECB has neared its rate cutting cycle with the sentiment that the ECB and other central banks now need to be vigilant for an upturn in inflation.

With data still coming in progressively weaker in the euro zone and expected to weaken further, inflationary pressure will be very difficult to manage. The Irish government is set to announce its budget- the expectation is for higher taxes and less spending…the economy is contracting sharply and its economy boasts the worst deficit in Europe.

Overnight the Reserve Bank Of Australia cut interest rates to a record low of 3.0%, with unemployment still rising there could be further cuts moving forward, RBA governor Glenn Stevens said the board saw scope for a further modest reduction.

Elsewhere, the Bank Of Japan left rates unchanged at 0.1% and expanded their list of acceptable collateral for money market operations to help liquidate the economy.

Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.

The troubled insurance company is integral to insuring households and financial risk globally and would pose a systemic risk to the global economy if allowed to fall. AIG has already received support of $150bn [...]]]> AIG yesterday announced the biggest corporate quarterly loss in history as 4th quarter 2008 figures showed a $61.7bn loss.

The troubled insurance company is integral to insuring households and financial risk globally and would pose a systemic risk to the global economy if allowed to fall. AIG has already received support of $150bn and will now require further funding to sustain it.

The markets reacted swiftly to the news with US stocks falling to their lowest level in 12 years and the FTSE marking a slump of 5%. The bleak outlook yesterday was not helped by HSBC showing pre tax profits for 2008 down by 62% on the previous year and confirmation that it is seeking to raise 12.5bn from shareholders to help the firm through the uncertain economic environment.

The news released yesterday simply compounded the fact that the economic downturn is deepening and looking likely to continue. The knock on effect in the markets was a huge sell off in equities and a rush to the safe haven US dollar. Sterling was sold heavily against the majors- rapidly falling towards 1.40 against the dollar and retracing to 1.11 against the euro.

Thursday will confirm the decision on interest rates for the Bank Of England and the European Central Bank; it is expected that both central banks will cut rates by up to 50 basis points.

Interestingly the Bank of Australia kept rates on hold at 3.25% last night, citing confidence in recent policy easing and stimulus packages as being sufficient to maintain confidence in the economy. Could we see a similar stance from the BOE or ECB on Thursday?

Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.

The Japanese yen traded at 3 week highs against the dollar and the Euro yesterday amid concerns that the G7 [...]]]> The RBA kept Aussie rates on hold last night at 6.25%. Today we see the release of UK and German industrial production, across the water all eyes will be on non-farm productivity and consumer credit data.

The Japanese yen traded at 3 week highs against the dollar and the Euro yesterday amid concerns that the G7 may issue a statement censuring yen weakness. However, the likelihood of that materialising has continued to deteriorate, with US Treasury Secretary Paulson insisting that the currency is trading competitively in the open market and that there hasn’t been government intervention since 2004.

The dollar eased 0.3 per cent to $1.2955 against the Euro despite weaker Euro zone retail sales and German factory orders in December. The soft nature of these releases has had little impact on the view that the ECB will tighten rates again probably in March and then later in the year.

Sterling was buoyed by robust retail sales numbers released by the British Retail Consortium; the fastest growth of January spending seen for 3 years, another reason for Merve to think about surprising the market again this week?

Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and debt consolidation.