Home loans rise in subdued market

MORTGAGE lending rose by 6 per cent in February but housing market activity remains at low levels, according to figures from the Council of Mortgage Lenders.

Gross lending for home loans reached 9.2 billion over the month. The unusually high rise in lending in February follows a slowdown in January when housing market activity was hit by the weather and the end of the stamp duty holiday.

The February figure is still well below the 2009 average and 6 per cent lower than in the same month a year ago.

The first two months of 2010 are broadly in line with the CML's forecast for total lending of 150bn over the year. The CML predicts an uneven market with continuing price fluctuation in coming months.

Merger go-ahead

THE Financial Services Authority has confirmed the merger of Chelsea and Yorkshire building societies.

The merger was unveiled late last year and overwhelmingly approved by members of both societies in January. The FSA said the deal would go ahead even though it received complaints from some members of both societies that they weren't properly informed about the merger.

The combined society will have 2.7 million customers, 178 branches and 25bn in assets. The new organisation will be called Yorkshire Building Society, although the Chelsea Building Society name will remain as a separate brand.

Co-op ups payouts

THE Co-op is increasing the dividend payment to its members by 16 per cent following a huge rise in the group's profits in 2009.

The mutually owned company saw pre-tax profits rise by 85 per cent after the acquisitions of the Somerfield supermarket chain and Britannia building society last year.

The successful results mean that this year's dividend payment will be 55 million.

Rewards on a roll

BARCLAYCARD is rolling out its Freedom rewards scheme to more than eight million cardholders.

Customers can earn money by using their Barclaycard to buy goods and services in 30,000 participating outlets.

Cardholders will earn 1 per cent on purchases.

Shell is the latest company to introduce the Freedom scheme in its 900 petrol stations across the UK. Other participating retailers and brands include Npower and Pizza Express.

Account discount

SANTANDER has halved the cost of its Reward Bank Account, which pays 5 per cent fixed interest on credit balances for a year and offers benefits worth 460 a year including travel insurance.

The account will now cost 5 a month for the first three months.