The Week Unzipped: Scots property prices show signs of stabilising despite depressed sales

THE Scottish housing market is beginning to stabilise, albeit at depressed levels, with sales at half the pre-recession levels, according to the Lloyds TSB quarterly monitor.

House prices rose by 3.7 per cent in the three months to October, leaving them 4.6 per cent higher than a year ago. Yet house purchases fell 17 per cent compared with the previous quarter and were 10 per cent lower than the same three months last year.

Donald MacRae, chief economist, Lloyds TSB Scotland, said: "There are no signs of a precipitate fall in house prices. Likewise there is little prospect of significant house price gains in the immediate future."

From zero to hero

Virgin Money has extended the zero per cent introductory period on its balance transfer credit card from 14 to 16 months. Balance transfers attract a 2.89 per cent fee. After the initial period the card reverts to a typical rate of 18.9 per cent. The card also offers zero per cent on purchases for three months.

Right of return?

Christmas shoppers should check returns policies and keep receipts, as more than seven million Britons have had problems returning unwanted gifts, according to Which?

Around 9.9 million consumers tried to return a gift in the last two years, with eight out of ten experiencing difficulty getting their money back.

Half of those were refused a refund because they didn't have the receipt, and 16 per cent because the shop did not allow refunds for unwanted goods.

Less than half of those surveyed were aware that they had no legal right to return something simply because they changed their mind.

Santander launch

Santander launched a two-year remortgage tracker at 2.09 per cent available to its current account customers only.

The mortgage requires a 40 per cent deposit and charges a 995 fee. Borrowers must have credited at least 1,000 to their current account over the last three months and have a minimum of two active direct debits or standing orders.

Norwich and Peterborough reduced rates on its five-year fixed mortgage to 4.88 per cent and introduced a new two-year fix at 4.15 per cent. Both mortgages require a 15 per cent deposit and are available to homebuyers and remortgagers with a 995 fee.

Leeds launched a shared ownership mortgage, charging 5.99 per cent fixed for two years. The mortgage is available with a 25 per cent deposit and a maximum borrower share of 95 per cent.

The lender also introduced a two-year discount mortgage at 2.8 per cent and a five-year fix at 3.89 per cent. Both mortgages require a 25 per cent deposit and charge fees of 199 and 995, respectively. The deals allow 10 per cent capital repayments each year.

Bond rates on the up

Norwich and Peterborough increased rates on its one-year fixed-rate bond and one-year E-bond to 3 per cent on one-off investments of more than 1,000.

Leeds Building Society has reopened its short-term fixed-rate postal bond paying 2.5 per cent. The bond allows unlimited access to all the funds without notice or penalty.