First, APRs must reflect the total cost of a low-start mortgage over its entire life. For instance, under existing rules a 25-year mortgage with an introductory rate of 4.8 per cent for the first two years only could be advertised as 4.8 per cent APR. Stephen Byers, Secretary of State for Trade and Industry (DTI), said the regulations “will put an end to misleading advertising practices”.
The reforms implement an EC directive and come in three parts. HOME BUYERS will get a fairer picture of how much their mortgages will cost under a series of regulations unveiled yesterday by the Government, which aim to impose a standard way of calculating the annual percentage rate (APR). Shares in the company, which provides capital for Internet start-ups, jumped 28.5p to 113.5p after it boosted its warchest with a pounds 60m placing at 60p.Rumour has it that the company is looking at several deals with quoted and unquoted companies; one is said to involve an established Net player such as Freeserve.. Followers of the company are convinced that it is lining up a major contract with a blue-chip mobile telephone manufacturer such as Nokia or Ericsson.RECENTLY floated NewMedia Spark, led by Luke Johnson of PizzaExpress, is attracting a lot of interest.

Tadpole Technology rose 3.25p to 49.25p on returning whispers of a deal with a major telecom group for its portable hi-tech kit.Property group Wates City of London rose 2.75p to 85.25p after rival Grosvenor Estates increased its stake from 13 to 17.2 per cent, fuelling speculation of a bid.SEAQ VOLUME: 1.748BNSEAQ TRADES: 103,124GILTS INDEX: N/Af.guerrera independent.co.ukTHE HI-TECH minnow Telspec yesterday finally caught up with its peers with a 31.5p rise to 115.5p.While telecoms stocks were soaring Telspec, which makes switches for mobile phones, had been left behind somewhat and yesterday’s rise should go some way to redress the balance. There are rumours of an imminent multimillion-pound deal and of directors’ share buying.AIM-listed Internet group Meda invest rose 0.5p to 9.5p on rumours of two deals. However, rumours of a deal with Microsoft are believed to be wide of the mark.Money Control, a maker of coin validators for amusement machines, cashed in on a 25.5p rise to 155p after unveiling a 170p-per-share cash offer from US rival Coin Acceptors.Reflective ink manufacturer Reflec rose 0.7p to 16.87p after agreeing a distribution deal with US group Play Industries. E-commerce specialist Infobank confirmed merger talks and soared 162p to 1,207.5p. The company was also helped by a huge rogue trade which saw its shares go for 3,360p when the price was 1,331p to 1,370p.Computer-maker Psion, 270p higher to 2,404p, and digital TV box maker Pace Micro, 29.75p better to 498.75p, were helped by rumours of US deals.

The tech-laden techMark index ended 70.12 points higher at ,2949.10.Electronics Boutique bucked the trend, plumbing new lows after a 5.5p fall to 41p as the recent profit warning continued to hurt.Holiday struggler Thomson Travel stretched 5.5p higher to 95.5p on vague whispers that the Thomson family could sell its stake to a predator, while mining group Lonmin dug up a 38p rise to 542.5p on talk of corporate action.Small companies were their usual lively selves. Computer group Logica soared 183p to 1,381.5p on hopes of a deal. Rival Scottish & Newcastle brewed 23p higher to 461.5p in sym- pathy.As for the banks, Bank of Scotland plummeted 43p to 724p after raising its offer for NatWest, up 47p at 1,518p, to 1,532p per share. Royal Bank of Scotland, down 14p to 1,328p, is now odds-on to launch a counterbid with its results on Thursday.More deals in the sector should follow, possibly involving Abbey National, 43p lower to 1,084p, and Alliance & Leicester, down 2.5p to 884.5p.Hi-tech stocks continued to be in demand as the US Nasdaq index roared away. Rupert Murdoch’s satellite broadcaster beamed 61.5p to 820.5p on whispers that it would be the next media group to consolidate.The acquisition of a 24 per cent stake in German pay-TV channel is a foregone conclusion but there are additional rumours of a merger with French rival Canal+.Granada rose 9.5p to 540p amid whispers that it might counter the Carlton/United merger with an offer for Carlton or a strike at fellow ITV group Scottish Media, up 28.5p to 895p.There is also a chance that Granada might want to boost its leisure side by striking at Whitbread, 5.5p higher at 577p, or even Bass, 40p better to 675p, after being given the green light to buy Allied Domecq’s pubs in exchange for a series of undertakings. The shares were suspended after the close to allow GEC to change its name to Marconi.Energis missed out on the fun, plunging 82p to 2,631p after a downgrade from Morgan Stanley.In media, confirmation of the merger talks between ITV groups Carlton, 22.25p better at 576.5p, and United News & Media, 23.5p up to 769p, excited BSkyB.

Once again, telecoms, media and banks did most of the running among blue chips.Cable & Wireless rang up a 58p rise to 867p on late rumours of a bid, possibly from Deutsche Telekom. The market is convinced that a Sunday newspaper will splash on the story.Telecom equipment maker GEC soared 82.5p to a best-ever 962.5p on reports that it is cheap compared with its US peers and could be taken over. Much of the credit for the blue chips’ performance went to Wall Street.The Dow Jones came back from the Thanksgiving rest day with a convincing opening which helped to wipe out London’s mid-morning losses.Volume was a hefty 1.7bn shares, thanks to a 128 million turnover in Vodafone Airtouch, down 2p to 298.25p, on Mannesmann bid uncertainty – and an incredible 221m volume in minnow Pacific Media – up 1p to 4.715p ahead of a rumoured Chinese Internet deal.The FTSE 250 finally caught up with the leaders, rising 24.7 to a new all-time high of 6,182, while the Small Cap was also in record territory after a 10.4 point rise to 2,872.4. Rival Sainsbury’s fell 1.75p to 314.5p after Merrill Lynch downgraded.The overall market built on Thursday’s gains as the corporate action rush gathered pace. The FTSE 100 hit a fresh record – but only just – rising 2 to 6,684.8. Other potential M&S bidders include Kingfisher, 16p lower to 619.5p, and Archie Norman’s shell Knutsford, up 31p to 270p.The rest of the retail sector was also excited.