Personal Loan With Collateral

A leading consumer website has welcomed Alliance & Leicester's decision to launch a 125 per cent mortgage, saying that it will help first-time buyers get on the property ladder.Recently, Alliance & Leicester said that it would offer people a 125 per cent PlusMortgage, which combines a mortgage with an unsecured personal loan.While Citizens Advice Bureau and the National Debtline have criticised the lender for offering people a deal that means that are reduced to negative equity from the start, moneysupermarket.com has welcomed the move."I believe A&L is acting with full responsibility in bringing this product to market," said Louise Cuming, the head of mortgages at the price comparison website."It's not surprising to see another lender join the 100 per cent plus market when first-time buyers continue to find it increasingly tough to get a foot on the housing ladder."Ms Cuming explained that the deal was not encouraging people to take on more debt that was appropriate, as it will "be sold via brokers and therefore borrowers can only access [the mortgage deal] after a stringent advice process."She added: "A&L is only targeting people with the propensity to take on this large amount of debt – and, in fact, lenders have historically seen lower percentage arrears in the 100 per cent plus market versus the 95 per cent sector."A recent report from Nationwide suggested that first-time buyers now have to spend £120 a month more to pay for their mortgage than they did a year ago.

Consumers feel the heat as interest rates rise

NEW DELHI: For most, the interest rate increase has been a bolt from the blue. If you've taken the plunge and splurged recently on that luxe 4,000-sq ft penthouse apartment, you've been hit really hard. And if you've been window-shopping to upgrade your car or for expensive gizmos, chances are you've put your plans on hold. ET commissioned a survey to global market research company Synovate immediately after Monday's interest rate hikes were announced by housing finance companies and banks to take a peek into the mood of the nation. And you may have guessed it right, the results are definitely a dampner on the urge to splurge. In fact, such has been the reaction to the latest round of hike that 71% of those surveyed feel that it will hit their household expenses, while another sizeable chunk (71%) feels that they would not opt for a housing or personal loan now.

Special report: Inside the Kebble forensics

Even hardened cynics would concede that Investec, the investment bank, has been placed in an invidious position in the wake of the late Brett Kebble scandal. But litigation has silenced Investec. The key piece sits in the hands of London-based lawyer and entrepreneur Monty Koppel, who speaks for 20% of shareholders in JCI.

Investec was separately attacked last Friday by Johann Blersch and Tom Dale, simultaneous with their ousting (as independent directors) from the board of Randgold & Exploration (R&E).

Banks hike lending rates, but in no hurry to raise deposit rates

MUMBAI: Banks are likely to hike lending rates by 50-100 basis points in April itself, but may go slow on passing the benefits of rising interest rates to retail depositors. Already, Yes Bank and ICICI Bank have announced a hike in the prime lending rates (PLR), following the hike in the cash reserve ratio and repo rate announced by the Reserve Bank of India (RBI) on Friday. While Yes Bank raised its PLR to 14.75%, ICICI Bank's new PLR is 15.75%, probably highest in the industry. Sources said that HDFC Bank and home loan provider HDFC, too, are considering a hike in lending rate. HDFC Bank's PLR stands at 14% now, while HDFC charges 10.25% on floating rate and 12% on fixed rate loan. In this current round of rate hike, interest rates will move up even for existing home loan customers, unlike the case in the last round of rate hike.