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6 June 2019

Credit and mortgage advances
South Africa - Absa
Continued stable growth in household credit and mortgage balances,br> Growth in the value of outstanding credit balances in the South African household sector (R1 660,9 billion) remained relatively stable in the first four months of 2019, recorded at 6% year-on-year (y/y) at the end of April this year.

Household secured credit balances (R1 255,5 billion and 75,6% of total household credit balances), which includes mortgage, leasing and instalment sales balances, showed growth of 5% y/y in the 4-month period up to end-April (4,9% y/y at end-March). Mortgage balances growth was only marginally lower at end-April (see below), whereas growth in instalment sales balances (R284,1 billion and 22,6% of total household secured credit balances) improved to 8,3% y/y from 7,5% y/y at end-March.

Growth in household unsecured credit balances (R405,5 billion and 24,4% of total household credit balances) was recorded at 9,4% y/y at end-April. General loans and advances growth came to 9,7% y/y at the end of April, with credit card balances also rising by 9,7% y/y and overdraft balances increasing by 7,3% y/y.
Credit and mortgage advances

Is property set for a post-election rebound?
South Africa - Financial Mail
Industry players are hoping for a post-election rebound in residential property sales and prices following SA’s worst housing slump since 2009.

Back then, the market crashed in the aftermath of the global financial crisis and subsequent recession. This time around, it seems political and economic uncertainty in the run-up to SA’s general election is to blame.

Seeff Property Group chair Samuel Seeff says buyer "analysis paralysis" set in late last year, as concerns about SA’s future mounted. This was particularly evident in the wealthier segment of the market, where people can afford to put buying and selling decisions on hold.
Financial Mail

LMS expands access to anti-fraud tool to borrowers
UK - Mortgage Strategy
Conveyancing solutions provider LMS has made its anti-fraud tool Bank Account Check to any borrower with an active case via the firm’s panel.

Bank Account Check has been in use for law firms since 2016, and works through four stages: authentication, in which LMS will check that the borrower has an active case; protection, which asks the user to set up a password; a law firm search; and then confirmation after information has been matched.

From that point, the client can be sure that the law firm’s bank details are correct before they transfer funds.

LMS points to FCA research to show that, in 2018, £350m was lost in ‘push payment’ fraud, of which only £83m was able to be returned. In total, 84,624 could count themselves as victims.
Mortgage Strategy

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