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FTSE 100 up 0.7%, FTSE 250 up 0.2%

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Lloyds Banking Group ( LYG ) rises on lower motor finance scandal

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Gold miners jump after metal price hits record

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Unite Group ( UTGPF ) plunges after softer Q3 rental growth

(Updates after markets close)

Oct 8 (Reuters) - Britain's benchmark FTSE 100 closed at

a record high on Wednesday, buoyed by gains in heavyweight

financial stocks, while gold miners rallied as bullion prices

surged to historic levels.

The blue-chip FTSE 100 gained 0.7% to 9,548.87,

while the mid-cap FTSE 250 closed up 0.2%.

An index of bank stocks rose 1.9%. Lloyds

Banking Group ( LYG ) gained 3.7% after London's financial

services regulator proposed a lower-than-feared redress package

over motor finance mis-selling.

The sentiment propped up other lenders, with Barclays ( BCS )

adding 1.1%. HSBC ( HSBC ) also rose 1.5% after Morgan

Stanley raised its price target on the stock. Merchant bank

Close Brothers surged 5.4%.

Precious metal miners outperformed peers

after gold prices soared past $4,000 per ounce for the first

time.

Endeavour Mining ( EDVMF ) and Fresnillo rose 2.7%

and 3%, respectively, placing the miners among the FTSE 100's

top performers.

Industrial metal miners added 1.7%, tracking

gains in copper prices.

Real estate stocks, meanwhile, were the biggest

drag among sectors falling 1.9%.

Unite Group ( UTGPF ) dropped 10.8% to a more than five-year

low, the biggest loser on the FTSE 250, after the student

accommodation developer reported rental growth of 4% at the end

of the third quarter, compared with a 8.2% growth a year ago.

Investors also watched trade developments as Prime Minister

Keir Starmer began a two-day visit to India and said he wanted

the trade deal with India, inked in July, implemented as soon as

"humanly possible".

The FTSE 100 rallied to record highs last week, posting new

peaks in four out of five sessions, helped by resurgent

healthcare stocks, which had lagged in the first half of the

year.

On Wednesday, they gained 0.6%, while

AstraZeneca ( AZN ) gave up its earlier gains to end the session

nearly flat.

Among other stocks, Vertu Motors ( VTMTF ) fell 2% after

warning of an annual profit hit from a cyberattack at Jaguar

Land Rover, whose dealerships the motor retailer operates.