Slump In UK Mortgage Lending

Problems at HBOS and Bradford & Bingley increased with the news of UK Mortgage approvals falling to a new low in August this year. Worries were already in with HBOS not doing too well and doubts over Lloyds TSB deal going through. It was also hit by the news of a possible US bailout. The decline gathered momentum with the announcement of UK houses prices dipping to 64% which is lower than last year. So, the impact felt on HBOS is more as it is down to 189.5p which is almost a fall of 9%. Bradford & Bingley were also down to 24.25p which is down by 14%. With Deutsche Bank moving from holding to selling and a cut in its price target to 45p from 65p, Trinity Mirror has fallen to 102.75p. Tate & Lyle also lost 55p after a judgement on a patent dispute involving Chinese sucralose importers and manufacturers went against their favour. The picture is also grim with pub companies after Mitchells & Butlers pointed towards increasing costs in areas of food and energy, employment and duty. They also warned of an additional expenditure of 3% to maintain profits at this year’s level. Mitchells & Butlers fell to 243.75p while Punch Taverns faced a dip of 25p.

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