Interest rates on personal loans have been rocketing
March 31, 2008
According to a recent report the interest rates on personal loans in the UK have been rocketing over recent months, with consumers now having to pay significantly more for some loans than they would have paid a year ago, despite the fact that the base rate is now at the same level as it was a year ago due to recent rate cuts in December and February. Those taking smaller loans of around £1000 to £3000 are going to be hardest hit, as these are the loans that have seen the most significant rises. Read more
Much larger deposit required from first time buyers
March 31, 2008
Whilst industry experts are stating that first time buyers can at last look forward to increased affordability due to falling house prices and interest rates, both of which are expected to continue falling over the course of this year, affordability may not be as great as many think, as first time buyers are now having to stump up more money upfront as a result of increased deposits required be increasingly stringent lenders who want to cut back on their risks. Read more
2008 could see three interest rate cuts
March 18, 2008
Analysts and economists have predicted that 2008 could see the Bank of England cutting interest rates three times, which will make financial management and affordability easier for homeowner that have had to face five interest rate increases and repayment increases since August 2006. Many had hoped that the Bank of England would cut interest rates after November’s Monetary policy Committee meeting, but the rates stayed at 5.75%, which is the level that the base rate has been at since July of this year.
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Decline in business confidence due to credit crunch
March 15, 2008
According to a recent report the credit crunch that has swept across the UK and much of the rest of the globe has hit businesses hard in terms of confidence, with business confidence taking a real hit as a result of the effects of the credit crunch. The credit crunch was sparked in the US sub-prime mortgage sector and has spread quickly to other parts of the world, leaving behind a trail of turmoil in the financial markets. Read more
Debt advisors prepare for increased enquiries
March 11, 2008
With thousands of homeowners in the UK due to come off fixed rate mortgage deals in the coming months, debt advisors are preparing themselves for a massive influx in enquiries, as consumers see their mortgage repayments rocket and try to keep on top of their finances. Those affected are homeowners that took out fixed rate deals in 2004 and 2005 for a two or three year period. Many enjoyed a low fixed rate of just 4.24% but with their fixed rate period coming to an end will now see their interest rate shoot up to the lender’s standard variable rate. Read more
Interest rates kept on hold for moment
March 8, 2008
Following the most recent Monetary Policy Committee meeting the Bank of England has announced that it will be keeping interest rates stable at 5.75% for the moment, adding that the global credit crunch and the fall in the rate of inflation were both factors that had been considered in its decision not to raise interest rates further. Interest rates have already risen five times since last August, rising from 4.5% to 5.75% through a series of five quarter point interest rate rises. Read more
Mortgage lender goes into administration
March 5, 2008
According to a recent report Victoria Mortgages, which is a specialist lenders in the sub-prime sector, has had to go into administration as a result of escalating debts. The UK has seen turmoil hit the financial markets following a credit crunch that was sparked by high bad debt levels in the sub-prime mortgage sector in the United States. Victoria Mortgages appears to have become one of the casualties of this situation, and officials have confirmed that the company will no longer be funding new loans. Read more
Bank of England keeps interest rates on hold
March 2, 2008
Following this month’s Monetary Policy Committee meeting the Bank of England has announced that interest rated for October 2007 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