Headline APRs may not be as impressive as they sound
February 26, 2008
Consumers that are falling for glossy ads advertising headline APRs on borrowing are being warned to watch out and act carefully, as the seemingly attractive headline rates offered by some lenders may not be quite as attractive when Payment Protection Insurance is brought into the equation. Many lenders advertise great rates in magazine, radio, and television advertisements. However, it has come to light that in some cases the APR may actually be incorrect because Payment Protection Insurance has not been taken into account when calculating it. Read more
UK sees rising repossession levels
February 24, 2008
According to recent reports the UK continues to see rising repossession levels after millions of homeowners with variable rate mortgages were left struggling to repay their mortgage following a series of interest rate rises over the past year. The base rate has gone up five times since last August, and has resulted in the base rate shooting up from 4.5% to 5.75% after five rises of 0.25% each. For homeowners with variable rate mortgage this has meant a massive overall rise in repayments. Read more
Valuations costing a fortune through mortgage companies
February 20, 2008
Many mortgage companies are charging fees that are way over the top for valuations according to a recent report, and this is despite the fact that many of the customers are not moving home but are simply switching mortgages to another lender. It is thought by many that this is one of a number of tactics used by mortgage lenders in order to get extra money out of customers, along with the extortionate fees that many charge when taking out a mortgage loan – an issue that has been at the centre of controversy over recent months. Read more
More and more people turn to Provident Financial
February 12, 2008
The effects of the credit crunch in the UK has made it increasingly difficult for consumers to get finance of any sort, and an increasing number of lenders are taking a firm stand when it comes to taking risks, refusing credit to many more people and creating ever harsh credit conditions. Many people struggled to get the finance that they needed in the run up to Christmas, and according to recent reports the level of approvals when it comes to loan, mortgage, and credit card applications has been steadily going down. Read more
Bank of England keeps interest rates on hold
February 10, 2008
Following this month’s Monetary Policy Committee meeting the Bank of England has announced that interest rated for October will remain unchanged at 5.75%. This was widely expected by most economists and analysts, although the decision has caused disappointment amongst those that had been calling for a cut in interest rates. This is the third month in a row where interest rates have been kept on hold at 5.75% following July’s quarter point rise, which took the rate up to its current level from 5.5%. Read more
New year is unlikely to see an end to credit crunch effect
February 8, 2008
Since summer of this year both consumers and industries in the UK have suffered as a result of the credit crunch that has swept across from the Atlantic, where it was sparked in the sub-prime sector of the US mortgage market. The effects of the credit crunch have been profound and damaging, and there have been some high profile victims, including the stricken bank Northern Rock. However, for those that thought that the problems were set to die down as the New Year dawned the news is not good. Read more
Potential borrowers could face a struggle
February 5, 2008
Experts have warned that consumers could be facing real problems when it comes to borrowing money and taking out credit in the months to come, and this comes as a result of the recent credit crunch that has impacted upon the financial markets in the UK and globally. Increased stringency from lenders in the light of the turmoil in the financial markets has resulted in many people finding it increasingly difficult to get finance or credit, particularly in cases where their credit is not very good. Read more