Rivals lift Abbey

Article Abstract:

Abbey National shares have risen in price and have been boosted by the conversion of the building society Woolwich into a bank. HSBC James Capel rates Abbey National shares a buy, and sees the shares as likely to benefit further from building society conversions. Credit Lyonnais and Merrill Lynch also rate the shares a buy for a number of reasons such as increases in dividends. BZW and Panmure Gordon are neutral. ABN AMRO Hoare Govett rate the shares a sell and is concerned about low interest rates offered to Abbey savers and the impact of expected rises in UK rates for savers.

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Abbey ahead - how long?

Article Abstract:

Abbey National has seen a rise in its share price as the UK housing market has recovered and brokers are divided as to whether this rise will continue. Two brokers from a sample of six rate the shares a buy, two rate them a sell and two rate them a hold. The buyers include HSBC James Capel which is less concerned about deteriorating margins than is Kleinwort Benson, a seller. UBS and BZW are holders. BZW sees price competition among mortgage lenders becoming less intense, and UBS sees benefits from the UK housing market, though changes in sentiment could affect the stock.

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Why British home loans are such a bad deal

Article Abstract:

United Kingdom home loans are more expensive than those of the US, where rates can be fixed for 30 years. Rates can be set for ten years for some UK mortgages, but there are heavy penalties for early redemption. UK lenders have difficulty finding liabilities to use to use long-term fixed mortgages, but this problem could be overcome. Competition has increased inthe UK market, and borrowers should seek fixed rate mortgages with terms that are more flexible and transparent.

Prices and rates, Mortgages

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