How have homeowners been spending their increased equity? Perhaps a clue is that while mortgage equity withdrawals rose to 7.4% of disposable income in the first quarter of the year, car sales were up 15.8% in June (Guardian, 5 July).
HSBC has become the first UK high-street bank to offer Islamic mortgages. Customers neither pay nor receive interest, which is forbidden under Islamic law (Eastern Daily Press, 2 July). Such mortgages had attracted double stamp duty until this year's Budget.
As politicians failed to convince the European Central Bank to cut interest rates, business leaders and unions tried the same tactic on new Bank of England governor Mervyn King (Guardian, 7 July).
Source
Housing Today
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