Rpt-fitch: Help-to-buy Positive For Uk Rmbs, Risks Need Monitoring
UK to give budget update, fiscal forecasts on December 4 – Osborne
Credit: Reuters/Toby Melville WASHINGTON | Fri Oct 11, 2013 8:49pm BST WASHINGTON (Reuters) – The government will release a budget update and new fiscal forecasts on December 4 and the focus will remain on reducing the country’s deficit, Chancellor George Osborne said on Friday. “Britain continues to have some very serious public challenges that have to be addressed,” Osborne told reporters during a visit to Washington for an annual meeting of the International Monetary Fund. Britain’s budget deficit widened sharply during the global financial crisis but has come down by about a third as the economy improved. “It’s still too big,” Osborne said. On September 30 he told members of his Conservative Party that he would return Britain to a budget surplus during the next parliament, due to run between 2015 and 2020, as long as the economy continued to mend. Earlier this week, the IMF raised its forecasts for Britain’s economic growth by more than for any other big advanced economy. Also this week, British business leaders urged Osborne to do more to ensure the recovery gains speed. In his comments on Friday, Osborne declined to say how the improved outlook for public finances might influence fiscal policy. But he said the government’s focus was on reducing the national debt. “When we’ve got resource available, we have got to make sure that we are doing what we can to reduce our deficit and our debt,” he said, citing the 3.2 billion-pound ($5.10 billion) sale of state-owned shares in bank Lloyds last month. The government has also sold a majority stake in the postal service, Royal Mail, which made its market debut on Friday. Britain’s government gives an update on public accounts in November or December each year while the budget is usually announced in March.
UK breaks ground on $65 million expansion of business college (Video)
But a number of provisions in the scheme, combined with generally improved underwriting standards since the financial crisis, will help offset these risks. If it succeeds in getting a range of lenders comfortable with high loan to value (LTV) lending, the scheme could increase prepayment rates in UK RMBS transactions as it becomes cheaper to refinance existing high LTV borrowing with another lender. Data from Fitch-rated UK RMBS transactions show that annual prepayment rates fell to 5%-15% in 2009-2010, and remain below the range of about 20%-40% before the financial crisis. However, while they might increase, we would not expect prepayment rates to recover to pre-crisis levels, as total exposure of RMBS pools to high LTV loans would probably be relatively low, due to the presence of seasoned loans. Rising house prices and increased turnover in the property market would also be modestly positive for existing UK RMBS transactions. The Royal Institution of Chartered Surveyors (RICS) said Tuesday that the balance of surveyors reporting an increase in house prices last month had hit its highest level since June 2002. Borrowers who struggled to make payments would be more inclined to try and resume repayments if they were not in negative equity, and could potentially sell their house to repay their loan. The post-crisis rise in UK mortgage arrears stabilised in 2010 when house prices bottomed out, suggesting a connection between prices and arrears levels. Similarly, banks selling repossessed properties would recover more of their original advance in a rising and busier market, not just because prices are higher but because forced sale discounts would be lower. By increasing the availability and lowering the cost of high LTV lending, the government mortgage guarantee scheme arguably poses risks to the longer-term performance of the UK mortgage market, by encouraging riskier lending. However, we think these risks are mitigated by certain provisions in the scheme. These include affordability tests, the limited duration of the scheme, which will last for three years, and the fact that lenders are still exposed to some losses, and that once a lender provides a guaranteed mortgage product at a particular LTV, all of its lending at that LTV has to be guaranteed, limiting adverse selection. Nor can borrowers use the guarantee to re-mortgage with the same lender or to finance second homes or buy-to-let properties. In addition, the scheme is going to be monitored by the Financial Policy Committee at the Bank of England for its potential of raising systemic risk.
The project is part of UKs overall capital improvement plan , which was approved earlier this year by the Kentucky General Assembly and signed by Kentucky Gov. Steve Beshear. No state tax dollars will be used in any of the UK construction projects, which also include a new science building and improvements to UKs football facilities and Commonwealth Stadium. The Gatton College expansion and renovation calls for an increase in space for educational programs, as well as technology enhancements to classrooms and laboratories. Beshear joined UK president Eli Capilouto and Gatton College Dean David Blackwell at todays groundbreaking, according to a news release. The project is slated for completion by spring 2016. Highlights include: Expanding the footprint of the college by 40 percent to 210,000 square feet; Adding a 500-seat auditorium designed for special events and large lectures; Creating 20 new classrooms and 40 collaborative study or breakout rooms; Building a special events hall with audio-visual components to accommodate dinners and lectures seating between 75 and 200 people. John R. Karman III covers these beats: Economic development and government, commercial real estate, transportation, utilities, sports business, lottery, tourism/conventions, higher education, nonprofits, Jeffersontown, Downtown, Central Area. Industries:
Microsoft Takes Its ‘Bing It On’ Campaign To The UK, Where Google Has Royal Grip On Search
Experian Hitwise UK shared data showing that Googles UK search share had dropped below 90 percent for the first time in five years. StatCounter currently reports Google with 88.8 percent of the UK search engine market in September down from 91.4 percent a year ago. It shows Bing rising from 4.3 percent to 6.7 percent in the same period. Bing & Google Spar Over Bing It On Googles Matt Cutts shared the study with his Twitter followers , and in extended comments on Google+ , said that Bing It Ons flaws were pretty obvious. Bing behavioral scientist Matt Wallaert responded via blog comments and eventually wrote an article for the Bing search blog defending the Bing It On challenge . Ultimately, searchers get to decide every day which search engine they prefer and whether Bings results are comparable to Googles. But it seems to me that Google, by spreading the word about that study, is giving the Bing It On challenge even more publicity and legitimacy. Related Entries Related Topics: Channel: Industry | Microsoft: Bing | Top News About The Author: Matt McGee is Editor-In-Chief of Search Engine Land. His news career includes time spent in TV, radio, and print journalism. His web career continues to include a small number of SEO and social media consulting clients, as well as regular speaking engagements at marketing events around the U.S. He recently launched a site dedicated to Google Glass called Glass Almanac and also blogs at Small Business Search Marketing . Matt can be found on Twitter at @MattMcGee and/or on Google Plus .