Barclays aims to make vehicle purchase more affordable
May 29, 2008
Barclays Bank is aiming to make vehicle purchasing more affordable and convenient for potential buyers with decent credit, and has put together a new package to try and do this. The car loan deal, which was recently introduced by the bank, targets those looking to buy either a new or a used car, and enables borrowers to enjoy affordable repayments, competitive rates of interest, and a host of other benefits that will prove valuable to those purchasing a vehicle. Read more
What sort of mortgage help is the government proposing?
May 29, 2008
The mortgage meltdown that has occurred over recent months has not only affected the business of lenders, but has also left many homeowners in dire straits, particularly those that are due to come off cheap fixed rate mortgages over the coming months. Many homeowners that are due to come off cheap fixed rate deals will find it impossible to find another affordable deal in the current financial climate, and this means that many could struggle to keep on top of higher repayments, resulting in defaults and eventually repossession.
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Most borrowers will receive full 0.25% cut
May 27, 2008
A recent report has predicted that most mortgage payers in the UK will in fact benefit from the full 0.25% base rate cut, despite initial fears that some consumers would never see the cut reflected in their mortgage interest rate. The Bank of England cut the base rate by 0.25% following the December Monetary Policy Committee meeting, taking the base rate from 5.75% to 5.5%. This came as a relief to many homeowners who had been struggling with rising interest rates and rising repayments. Read more
Don’t look upon insolvency or equity as an excuse to get into debt
May 26, 2008
A recent report from the Personal Finance Research Centre has suggested that many people in the UK may be looking upon equity or insolvency opportunities as an excuse to get into high levels of debt, as they think that they can easily get themselves out of financial problems by bailing out using either the equity from their homes or through declaring themselves insolvent. Read more
Sub-prime lenders slated by CAB
May 23, 2008
Sub-prime lenders in the UK have come under fire from the Citizen’s Advice Bureau, with officials from the CAB accusing sub-prime lenders of dishing out loans to consumers that cannot afford them, and then getting aggressive when the borrower naturally falls behind with repayments. In response the Council of Mortgage Lenders has stated that the CAB is being ’simplistic’ and ’sensationalist’. Read more
Save money by switching your loan mid-term
May 21, 2008
According to some industry officials many borrowers that have unsecured personal loans that they are halfway through paying off could actually save money by switching their loan provider and changing to a cheaper deal halfway through the loan term. Many borrowers have avoided this process in the past for one of a number of reasons, such as assuming that their existing lender would impose hefty penalty fees, thinking that the whole process is too much hassle, or not even realising that this could be done. Read more
Loan fraud cases increase due to credit crunch
May 20, 2008
According to a recent report the level of fraud cases in relation to loan and credit applications has gone up as the result of the global credit crunch, which has made it increasingly difficult for consumers to get the finance that they need without resorting to omitting information off their applications, lying on their applications, or exaggerating information such as income. Worryingly, some of these lies may not be caught out, as another recent report indicated that a number of lenders were failing to carry out adequate checks when it comes to finance applications. Read more
Some borrowers may be entitled to mortgage holidays
May 19, 2008
According to some industry officials many homeowners may find that they are actually entitled to take mortgage repayments holidays as part of their mortgage loan contract, which could help out many homeowners from time to time when they are struggling to meet the repayments on their mortgage. Read more
Interest rates left on hold
May 16, 2008
The Bank of England has announced that interest rates are to remain on hold following this month’s Monetary Policy Committee meeting. The bank cut interest rates in April by 0.25% taking the base rate from 5.25% to 5%. However, most analysts and economists had predicted that the bank would not cut interest rates for two months in a row, so the decision to keep rates on hold for May came as no surprise to most industry professionals. Read more
First time buyers struggling more than ever
May 15, 2008
First time buyers are thought to be facing their toughest challenge yet when it comes to getting onto the property ladder, with officials warning that whilst income levels have only gone up by 53% on average over the past ten years, house prices have rocketed by 200%. Officials from the housing charity Shelter state that in addition to these figures the mortgage meltdown in the UK is making the prospect of homeownership even more impossible for the average first time buyer. Read more
Homeowner that bought properties within last four years could face capital loss
May 14, 2008
According to a recent report homeowners that purchased their properties under four years ago are worst placed to face capital losses from the effects of the ongoing house price falls, as many will have paid a fortune for their homes by could see the value of the property plummet in a relatively short period of time. However, experts have stated that whilst this group is most likely to face capital losses due to falling house prices not all will face negative equity depending on how much deposit they put down on the property when they took out their mortgage. Read more
Many sub-prime borrowers are turning to brokers
May 12, 2008
A recent report has shown that many sub-prime borrowers, such as those with poor credit and those without any proof of income, are now turning to brokers in order to get their loans and mortgages, as many think that they will be unable to find finance on their own in the current financial climate. Whilst it is true that lenders in all sectors have tightened up on their lending criteria, and that sub-prime consumers are one of the worst affected groups, there are concerns that some borrowers are not even bother to look for themselves and are going straight to brokers in the hope that they will find them the best deal. Read more
Two year mortgage range taken off shelves by Cooperative
May 10, 2008
Officials from the Cooperative Bank have revealed that they are withdrawing their range of two year mortgage deals, stating that their best buy two year mortgages have become so popular that they cannot keep up with demand. An official from the bank said: “The Co-operative Bank is fully committed to providing quality mortgage products in the current economic climate and developing strong and growing relationships with both new and existing customers.” Read more
Higher mortgage costs for many homeowners
May 10, 2008
A recent report has shown that nearly one and a half million homeowners could be facing soaring mortgage repayments costs as a result of their cheap fixed rate mortgages coming to the end of their fixed rate terms. The figures come from the Financial Services Authority. The report also stated that the Council of Mortgage Lenders and the Money Advice Trust Charity are now working on putting together advice for homeowners that are set to find themselves in this situation. Read more
Interest rate cuts may not be passed on right away says Darling
May 3, 2008
Many homeowners in the UK breathed a sigh of relief at the end of last year, when the base rate fell for the first time in over two years, following a series of five interest rate hikes. Following the 0.25% base rate cut in December of last year, interest rates have fallen a further twice, each time by another 0.25%, taking the base rate to 5%. However, not all borrowers have benefited from these rate cuts as some lenders have failed to pass on all of any of the rate cut. Read more