Motley Fool: Barclays Still Doing Well

Barclays (LSE: BARC) gave further insight this morning into whether the bank can sustain its sector-beating share price performance with a third-quarter trading statement. As predicted, most areas of the bank contributed excellent performances, with the full year results expected to be “in line with current market consensus”, according to Chief Executive John Varley.

MoneyExpert: Newcastle Building Society Introduces New Fixed-rate Mortgage

A new five-year fixed-rate mortgage product has been launched by Newcastle Building Society.

The new mortgage is available up to £500,000, offering a 95 per cent Loan to Value. Newcastle hopes that the product will appeal to those who are uncertain about future interest rate rises.

“This product offers buyers the opportunity to fix their repayments for five years with the certainty that there will be no change; regardless of Bank of England decisions,” explains Steve Urwin of Newcastle Building Society.

Fixed-rate mortgages have proven popular in light of a rising interest rate, which currently sits at five per cent. Borrowers opt for these types of mortgage to avoid the risks of future interest rate hikes.

However experts speculate that fixed-rate deals are set to fall in popularity at the expense of cheaper variable rate deals, as consumers look for the best mortgage rate.

Figures indicate that the average mortgage fixed interest rate was 5.24 per cent in September, the highest level since June 2005.

MoneyExpert: BBA Reports Strong Mortgage Borrowing

The British Bankers’ Association (BBA) is reporting strong levels of mortgage borrowing into the end of the year, comparatively higher than like figures for 2005.

According to BBA reports, gross mortgage lending in October was £18.9 billion, six per cent higher than in September and eight per cent higher than in October 2005.

These figures are indicative of continued buoyancy in the UK housing market with strong demand for properties and high mortgage approval levels.

To this end, the BBA also found that over 198,000 mortgages were approved in October at a total value of £21.8 billion, 15.5 per cent more than last year.

BBA director of statistics David Dooks comments that activity in the UK housing market might not have increased significantly since 2005, despite high borrowing levels – which will have included those looking for the best mortgage rate.

“The secured lending market undoubtedly remains robust, but after discounting price growth, lending volumes are not dissimilar to the same time last year,” he explains.

“October’s loan approvals were boosted by remortgaging, as customers look to fix or reduce their mortgage costs, but this activity, with customers changing their lender, has no significant effect on net lending marketwide.”