Lending appeals process launched by banks
April 14, 2011
It has been announced that banks in the UK have launched a new process whereby small businesses that are turned down for a loan when they make an application can appeal against the decision to refuse them the loan. Officials from the British Bankers’ Association said that this was one of a number of new initiatives that were being launched by the banking industry.
Under the new process any small business that has its application for a loan turned down by regular loan assessors will have the automatic right to escalate this issue and have a reassessment by a more senior member of staff at the bank with a view to getting the original decision overturned. However, despite these efforts small business groups are said to be sceptical about the scheme.
An official from the Federation of Small Businesses said that banks still had ultimate control over whether small businesses were granted vital loans or not and that this new process would not make much of a difference. He said that the process did not trigger any independent appeal and would simply mean that it was looked at by another member of the same bank.
Angela Knight, head of the BBA, said: “We are trying to set out very clearly what is the commitment of the industry in how it is going to deal with small businesses. If the answer is no [to a loan application], and most of the time it is yes, businesses want to have a more senior person look at [their application] and they want to have a better discussion about why it’s a no.”
However, the FSB said: “The banks still hold all the cards. Businesses still have to go through each individual bank’s appeal process, and can still be turned down without triggering an independent appeal.”
Consumers more interested in credit card limits than rates
March 1, 2011
According to one recent report many consumers in the UK who are looking for a credit card are more interested in the credit limit that they will get on the card rather than on the rate of interest that they will pay on their borrowing. Experts have said that people should use credit cards very carefully in the ongoing difficult financial climate. It is recommended that consumers use credit cards to help with cash flow and then repay the balance as quickly as possible to avoid spiralling debt and interest charges.
However, worryingly there are many people that are more concerned about how much they can get on a credit card rather than how much interest they will pay on their borrowing. Many of these people are also using the credit on their cards to splurge out and buy luxuries that they do not need just because they have the means to do so because of their credit card limit.
There are concerns that with the rising level of personal debt in the UK this sort of mentality could lead to increasing debt levels amongst consumers who could actually avoid large levels of debt by not spending unnecessarily on high interest credit cards. Those looking for a credit card should focus on only borrowing what they need to and getting the best rate possible on their borrowing.
An official has also warned on the use of price comparison sites to get the best deal on a credit card, warning that whilst these sites could sometimes be effective many focused on trying to get consumers to take out cards with providers that paid them the highest levels of commission, which could lead to more expensive borrowing for consumers.
Gold companies reprimanded by OFT
February 15, 2011
A number of gold buying companies have been issued with a warning from the Office of Fair Trading after it was found that they were treating their customers unfairly. Many people have started selling gold jewellery and items over the past couple of years due to difficulties in getting loans and finance when they need money, and because of the difficult financial climate.
However, an investigation was carried out by the OFT showing that many customers were being forced into taking what had been offered for the jewellery even if they did not believe it was a fair offer. Companies were found to be limiting the amount of time that consumers had to refuse an offer, and by the time they did refuse their jewellery had already been melted down on the assumption that they were accepting.
Five firms are at the receiving end of OFT warnings and have been told to change their practices, and this includes CashMyGold, Cash4Gold and Postal Gold. The companies are said to be working with the OFT in order to improve their practices so that customers are dealt with more fairly. Following the investigation the OFT raised a number of concerns about the companies, and whilst two of the five have closed down the other three are said to be cooperating with the watchdog.
A Cash4Gold spokesperson said: “We have, and will continue to be, clear with our customers as to what they should expect, and appreciate the OFT’s efforts to ensure our competitors adopt some of the same practices that have been part of our service offering from day one. Unlike some other gold buyers who shut up shop, we were pleased to work closely with the OFT to fully resolve all concerns.”
Are you considering a packaged bank account?
January 25, 2011
Finding the right bank account is important for those that want to effectively run their day to day finances smoothly and efficiently. There are a number of different bank account options available to consumers these days, from the standard current account to a basic bank account or a packaged account. You should look into the details of each account and determine which is the most suitable based on your circumstances. This way you can be certain that your bank account will be well suited to your financial needs and personal situation.
One of the types of bank account that is available to consumers these days is called the packaged bank account, and it is known by this name because it comes with a package of benefits that accountholders can take advantage of. Different banks have different names for their packages bank accounts, but essentially they are the same thing with many offering benefits that are pretty standard across the board, although there may be slight variations.
Packaged accounts may be well suited to some people, but not everyone will benefit from this type of account. It really depends on whether you will use the benefits that come with the account. The reasons you need to ensure that you will use the benefits that come with these packages accounts is because you incur a monthly fee for these accounts. You therefore need to make sure that the amount that you save on the services that come with the account will outweigh the amount that you spend on the packaged account over the course of the year.
If you will use several of the benefits offered, and would have otherwise taken out the services yourself anyway on the open market, you may find that the amount you save by getting them as part of the package makes it worth going for the fee-charging packaged account. However, if you are unlikely to use the benefits that are part of the package then you will find that the packaged account could be a waste of money.
If you are considering a packaged bank account you should look into the benefits that you receive so that you can determine whether you will use them and save money before making your decision. Some of the benefits that you may get include car breakdown cover, travel insurance, mobile phone insurance, pet insurance cover, discounts at certain retailers, and a variety of other benefits.
Interest rates will increase according to King
June 17, 2010
The governor of the Bank of England, Mervyn King, has recently warned that the base interest rate will increase as and when the Monetary Policy Committee deems it necessary. If the base rate increases many could see their loan and mortgage interest rates and repayments increase, which could prove financially devastating for some people.
The base interest rate was dropped to its lowest level in the history of the Bank of England at just 0.5 percent in March of last year as the government took steps to try and revive the flagging economy. It has been at this low level ever since, and the low base rate has been welcomed by a number of industry groups and consumers.
However, Mr King has now made it clear that whilst the base rate is currently at its lowest level ever this is not something that can be sustained and that the base rate will be increased as and when the Monetary Policy Committee believes that this is necessary and justified.
King also hit out at those that have accused the central bank of being complacent for failing to take any action when it comes to the base rate, stating that doubt should not be cast over the central bank’s determination to tackle soaring inflation and that the most likely course of action to tackle this would be interest rates before other factors were considered.
King said: ‘There will come a time when our task will be to manage the exit from such an abnormal degree of monetary stimulus. The Monetary Policy Committee will not hesitate to withdraw the current degree of stimulus when we judge that is necessary.’
Will the base interest rate be increased?
May 27, 2010
It was not so long ago that borrowers and homeowners would wait with bated breath on the day of the Monetary Policy Committee meeting each month to see whether the base rate would go up or down, and whether their repayments on their borrowing would be affected. However, for well over a year now the base rate has been at its all time low having reached a rock bottom rate of 0.5 percent in March of last year and having remained there since.
This may have resulted in some people becoming complacent, and whilst they may have been careful with their spending a year ago for fear that the base rate and their repayment might increase they may now have stopped being quite so careful with their money with the thought that the base rate will probably remain at its all time low for at least the remainder of this year.
However, homeowners and borrowers shouldn’t be too confident, as some officials believe that the only way to combat rising inflation levels would be to increase the base interest rate, which could then mean that mortgage and loan repayments increase for many borrowers. Over recent months a number of economists and officials have predicted that the base rate is likely to remain at its all time low over the course of this year, but a recent report has said that the base rate must increase.
The report came from the Organisation for Economic Co-operation and Development, which has stated that inflation has spiralled out of control over recent months and that the only way to keep a lid on inflation would be to increase the base interest rate.
The report claimed that the base rate would need to be increased at least once over the remainder of this year, and that by the end of next year the base rate would need to stand at around 3.5 percent. The level of inflation has been soaring above the target inflation rate of just 2 percent that is set by the government. It is thought that this could be a tough challenge for members of the powerful Monetary Policy Committee, as they will have to perform a real balancing act.
The OECD report stated: ‘The authorities face the challenge of preserving credibility, with headline inflation and some measures of inflation expectations exceeding the targeted rate in the context of extremely expansionary monetary and fiscal policies.’
Travellers will get reimbursed by Ryanair
April 22, 2010
Worried travellers that were victims of the chaos caused by the recent volcanic eruption in Iceland have received some good news with regards to being reimbursed for their expenses whilst they were stranded abroad. British airspace was closed as a result of the volcanic ash that stemmed from the eruption, and many Brits found themselves stranded abroad having to make arrangements for accommodation and food.
Whilst most airlines made no fuss about having to cover the reasonable accommodation and food expenses that customers faced whilst they were stranded the low cost airline Ryanair took a different stance. The airline boss, Michael O’Leary, had stood his ground and said that he would go to court rather than paying anything other than the cost of the ticket to stranded customers.
However, just a short while after threatening to defy EU regulations O’Leary backed down and has now joined the other airlines in agreeing to cover reasonable expenses that travellers incurred for accommodation and food whilst they were stuck abroad during the flight ban.
Originally he had stated that the tickets to travel on Ryanair to many destinations are so cheap that it was unreasonable for the airline to fork out hundreds of pounds per person in some cases to cover the cost of food and accommodation when the traveller had only paid thirty or forty pounds for the seat in some cases.
He also said that the airlines were paying for the government’s mistakes, adding: ‘Why exactly are the airlines expected to be reimbursing people’s hotels, meals and everything else when the governments are the ones who made a balls of this? This is a great opportunity to expose this.’
Saving money on extras when flying on a budget
April 17, 2010
For many holidaymakers these days the most viable option when going abroad is to opt for a low cost, no frills airline, and there are now many of these airlines in operation. These budget airlines run flights on a regular basis from a wide range of airports across the UK, and many consumers find that they offer suitable times and convenience departure points.
However, another thing that grabs the attention of the average consumer looking to book a flight from the UK is the eye-catching headline rate that these budget airlines advertise. Some even offer flights for just a few pounds each way, making the consumer think that they have got an incredible deal.
However, there is inevitable disappointment when the traveller actually tries to make the booking only to realise that there are extras, all of which cost money, and all of which substantially bump up the price of the flight. Depending on the airline that you book through the range of extras can be vast, and the price suddenly doesn’t look so appealing.
Some of the things that low cost airlines charge for include checking in, priority boarding so that you can try and get your desired seats, meals and drinks on board, administration fees, and baggage fees. The baggage fees are charged on any checked baggage that the traveller wants to take, and can cost around £30 per piece of luggage per passenger.
Whilst some of the charges that are applied such as the check in fees for airlines where online check in is mandatory there are others that can be avoided by travellers. Try and cut out unnecessary costs such as paying for priority boarding. Also, for short haul flights have a big breakfast before you travel or get something to take on board from duty free to save you paying for food and drink on the flight.
Baggage can account for a huge rise in the cost of ravelling, but the allowance for carry on baggage is relatively generous. Therefore, see whether you can get away with just taking on hold baggage rather than checked - travelling lightly can save you a fair amount of money, and it is important to remember that you can get all of things that you cannot carry in hold baggage, such as hairsprays and deodorant sprays or razors, from your destination when you arrive.
Music industry wants next government to ensure availability of finance
April 13, 2010
It has been reported that groups from the music industry are calling on the next government to ensure that the availability of finance in the UK is increased. Officials from the music industry have said that the industry is at risk because banks are refusing to lend money to labels, entrepreneurs, and artists. Executives from the music industry have said that the industry is at risk because of the refusal of banks to lend to music start ups.
The music industry said that it wants to ensure that the next government will address the situation when it comes to the lack of finance being made available by the banking industry. They added that this was preventing the music industry from accessing state sources of funding.
Executives have claimed that in the past year £1.3 billion has been made available under the government’s Enterprise Finance Guarantee, but that none of this funding has been put into the music industry, even thought the Department for Business, Innovation and Skills said that ‘music composers and own account artists’ were worthy of funding. Both Music Manager’s Forum and UK Music have called for changes to be made to increase funding.
An official from the Music Managers Forum stated: “Whoever comes into power must recognise that we have naked discrimination against music and we need to do something about it: either fix the mechanism that we already have or create something new.”
UK Music has called for the next government to work with music labels and managers to improve access to finance over the coming years. The group has developed a manifesto that is focused on making improved funding a priority within the music industry over the next ten years.
Many businesses turned down for loans by banks
March 17, 2010
It has been revealed in a recent report that many businesses in the UK that have needed financial aid from their banks have been getting turned down, as banks continue to clamp down on their lending. Read more
Many people will be leaving Halifax
February 22, 2010
The High Street banking giant Halifax has always enjoyed a healthy database of customers, but there is evidence to suggest that a huge number of customers may be leaving the bank because of changes that they have brought in with regards to how they charge for customers’ overdrafts. Read more
VAT rise saw High Streets bustling
February 5, 2010
The few days following Christmas have been extremely busy on the High Streets of the UK, and this is partly down to the fact that VAT is due to increase again from 1st January 2010, when it will go back up to 17.5 percent, having been reduced to 15 percent last year in order to try and aid the struggling economy. Read more
Further pay freezes for workers this year
January 26, 2010
The Confederation of British Industry has made a number of predictions recently, and has issued a warning stating that workers should prepare themselves for another year of pay freezes. The CBI has stated that with unemployment levels expected to increase until the autumn of this year it is unlikely that employers will be willing to agree to pay rises, which means that workers will have to cope with a second year without any pay rises. Read more
Tesco moves closer to full banking service
December 23, 2009
Over recent years many of the UK’s major supermarkets have started offering far more than just household goods and groceries, with everything from mobile phones and electricals to insurance services and credit cards now available from some major supermarkets. Read more
Gordon promises economic recovery in recent podcast
December 8, 2009
The shock news that was released recently with regards to the economic growth in Britain - or rather the lack thereof - caused more unrest in the UK. It had been widely predicted that the economy would show growth in the third quarter of this year, which would mean that the UK was finally out of recession, but sadly the figures showed that the economy had actually shrunk further by around 0.4 percent, leaving Britain languishing in the longest recession it has ever had to face since records began. Read more
Staying focussed on your finances
October 9, 2009
With the financial climate still very turbulent in the UK it has become increasingly important for consumers to keep a tighter reign on their finances. Read more
King wants to reduce public borrowing
July 28, 2009
The Governor of the Bank of England, Mervyn King, has recently spoken out stating that he wants to see the government put greater effort into reducing public borrowing. Read more
Young would-be tenants getting ripped off online
July 25, 2009
It has been reported that an increasing number of younger people looking for a place to rent are being ripped off online. In fact, according to some officials younger would be tenants are finding themselves being conned out of thousands of pounds due to online scams. Read more
Surveyors hope for increase in property sales
March 24, 2009
A survey from the Royal Institute of Chartered Surveyors has recently suggested that over the coming months there could be an increase in the level of property sales in the UK. Read more
RBS splashes the cash on parties
December 17, 2008
Banking giant, Royal Bank of Scotland, has been revealing its financial woes recently, and has taken the largest cash injection from the government’s banking bailout fund according to recent reports. Having taken around £20 billion from the government, the bank’s major shareholders are now taxpayers, with a stake of over 50 percent in the bank. Read more
Mortgage still being sought by first time buyers
November 17, 2008
A recent report has indicated that despite high house prices and restricted mortgage availability, coupled with higher borrowing costs and the threat of negative equity due to falling house prices, many non-homeowners are still seeking mortgage loans in a bid to try and get onto the property ladder. It is thought that thousands of people are still trying to get onto the property ladder despite the depressed conditions. Read more
Problems with mortgage interest help from Government
October 10, 2008
According to a recent report many officials have pointed out that there are some serious flaws in the scheme that the government has in place to help people with their mortgage interest payments if they lose their jobs. In the event of job loss the scheme means that the government will cover mortgage interest payments on home loans of up to £100,000. However, from April of next year this will apply to home loans of up to £175,000. Read more
Inflation to fall sharply next year
October 7, 2008
According to government officials the soaring level of inflation is likely to drop sharply next year, and this could result in falling interest rates, which will come as good news to those with loans and mortgages. Some industry officials have predicted that once inflation starts to fall next year interest rates could plummet to as low as 3.5%. At present the base rate stands at 5%, and has remained at this level for the past five months, as the Monetary Policy Committee tries to keep a lid on soaring inflation. Read more
How to ease the financial strain at home
September 20, 2008
The global credit crunch, tighter credit conditions, rising bills, and soaring living costs have all taken their toll on household finances, and many consumers have found that it has become increasingly difficult to cope with their finances, with many finding that their income is way less than their outgoings. Many industry officials have said that the situation is set to get worse, with the Bank of England hinting that rate cuts could come to a stop whilst the government tries to bring inflation under control, energy industry officials stating that bills could soar in the autumn, and little hope of food and petrol prices coming down. Read more
Homeowners should keep their eye on interest rates
July 7, 2008
Following the recent cut in interest rates, announced earlier this month by the Bank of England following December’s Monetary Policy Committee meeting, homeowners with variable rate mortgages are being advised to keep an eye on the interest rate from their lender to ensure that they benefit from the interest rate cut. The interest rate was cur earlier this month from 5.75% to 5.5% after the Bank of England announced a quarter point cut. Read more
Three brokers found to be mis-selling sub-prime mortgages
June 24, 2008
A recent report states that three brokers that were found to be mis-selling sub-prime mortgages – which are mortgages that are for those with poor credit history or no proof of income – have had to face action from the UK’s financial regulator, the Financial Services Authority recently, and one of the brokers that was found to be mis-selling these mortgage has been closed down by the FSA. This comes just months after the mortgage meltdown in the United States, which was sparked in the sub-prime sector and created a widespread global credit crunch. Read more
House price growth could grind to halt in 2008
June 22, 2008
According to officials from the Nationwide Building Society 2008 could see house price growth grind to a halt in the UK. The building society states that there is to be a ’significant slowdown’ in house price growth over the coming year, adding that the current annual house price inflation level of 9.7% could plummet to 0% by the third quarter of 2008. Officials from the building society state that this forthcoming slump is down to a number of contributory factors. Read more
Consumers reluctant to switch mortgage lender
June 17, 2008
A recent report has shown that many UK homeowners are reluctant to switch their mortgage lender, even in cases where their existing mortgage becomes difficult to afford. The data shows that even where borrowers have been on a cheap introductory deal that has come to an end, and they are left facing the financial implications of moving onto the lender’s standard variable rate, they are often reluctant to switch to another mortgage lender in order to get a better deal. Read more
DWP loses sensitive information
June 16, 2008
There has recently been another blunder, with yet another government agency losing sensitive data about consumers. The Department for Work and Pensions has admitted that it has lost hundreds of budgeting loan application forms, each of which contained a range of sensitive data about applicants, which could prove to pose a risk if the information falls into the wrong hands. A union official has branded the loss of this information as ‘outrageous’. Those that have recently made budgeting loan applications to the DWP have been advised to contact the agency as early as possible. Read more
Abbey’s 125% mortgage offer not appropriate
June 15, 2008
High street lender, the Abbey, is being criticised by many industry experts after announcing the launch of a 125% mortgage, which is being made available to first time buyers along with other groups. Experts claim that this mortgage deal comes at a bad time, when severe difficulties and chaos have hit the financial markets. Whilst many other lenders are cutting back on their mortgage offerings, the Abbey is allowing some consumers to borrow over and above the value of the home in a 125% mortgage deal. Read more
BoE holds interest rates for fourth month
June 14, 2008
Following on from the November 8th Monetary Policy Committee meeting the Bank of England has decided once again to keep interest rates on hold at 5.75%. This is the fourth consecutive month that the Bank has decided to leave rates unchanged, giving rise to much speculation as to why the interest rate has been left at 5.75%. However, when the decision was announced the Bank of England gave no indication as to why it had decided not to change interest rates for another month. Read more
Sale and rent back described as ‘daylight robbery’
June 11, 2008
An official from the housing charity Shelter has described some sale and rent back schemes as conducting ‘daylight robbery’. Shelter, along with other campaigners and groups including the Citizen’s Advice Bureau have been pushing for the government to introduce regulations and measures to stamp out unfair practices by such companies, which it states is leaving the lives of some people in tatters when they lost their homes and are affected financially. Read more
Cheap fixed rate homeowners see light at end of tunnel
June 6, 2008
Customer who are on cheap fixed rate mortgages that are due to come to an end are finally able to see the light at the end of the tunnel after months of fretting over how they will manage to keep up with repayments once their low fixed rate comes to an end. Over the last half of last year many people voiced their concerns over the repayment leap that those with cheap fixed rates would face once their fixed rate term came to an end, and many officials predicted that there would be huge rises in repossession levels. Read more
Mortgage brokers given warning by regulator
June 5, 2008
Mortgage brokers across the UK have been warned by the financial regulator, the Financial Services Authority, that they must ensure that they are providing clear, transparent, and fair information to consumers to ensure that they get the best deal on a mortgage based on their needs and circumstances. Times are already difficult for many brokers, with many lenders turning away applicants, and others who are now offering deals directly rather than through brokers. Read more
2008 to be a tough year for mortgage lenders
June 4, 2008
Experts have stated that 2008 is going to be a very tough year for mortgage lenders in the UK, stating that the effects of the credit crunch, which has decreased liquidity for lenders, will make it difficult for lenders to find the money to finance loans. Inter-bank lending has become more difficult and expensive, which as increased the turmoil facing mortgage lenders. Officials from the Financial Services Authority have stated that the market conditions at the moment mean a very bleak year ahead for lenders. Read more
Mortgage lending still on the decrease
June 3, 2008
According to the Bank of England mortgage lending in the UK continues to decline. The Bank of England recently released figures that showed how mortgage lending was still going down in the UK, with around 20% drop in mortgage lending for September this year compared to September of last year. The figures show that in September of this year there were 102,000 new mortgage approvals, which reflected a drop of 25,000 from the same period of last year and a fall of 6,000 from the previous month’s figures. Read more
Consumers could be hit by rising mortgage rates from lenders
June 2, 2008
Since August 2006 the base interest rate has risen five times in the UK, taking it from 4.5% to 5.75% in just under one year. Since July of this year struggling homeowners have been relieved to find that the base rate has remained stable, although the Bank of England has failed to cave in to calls for interest rates cuts. However, although the base rate has remained stable at 5.75% since July 2007 recent reports suggest that a number of lenders are still raising their mortgage interest rates, which means that some homeowners may still feel the additional pinch. Read more
Data loss blunders still continue
June 1, 2008
The loss of sensitive information by big agencies, banks, and firms has always been a problem that has put consumers at increased risk of becoming victims of identity theft and fraud, but over recent months the problem seems to have really hit the headlines, with a number of agencies and financial institutions being found guilty of massive breaches of security when it came to the safety and security of consumers’ personal data. It seems that even our own government cannot protect us, as one of the most high profile data loss blunders of last year was made by HM Revenue and Customs, which lost two discs containing the personal and banking details of 25 million people. Read more
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
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
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
Consumers should put aside at least three months salary
April 18, 2008
Independent financial advisors in the UK are urging consumers to ensure that they have some savings put aside for emergencies, stating that consumers need to put aside the equivalent of at least three months salary wherever possible in order to cover a range of eventualities and possibilities. Consumers are advised that they need this sort of ‘financial cushion’ in order to protect them should unexpected emergencies arise. Experts are advising that this is very important for those that are self employed, as they may need the cash to subsidize their wages in the event that they earn far less than they expected to one month. Read more
Did FSA fail to do enough over Northern Rock problems?
April 16, 2008
The Financial Services Authority, the UK’s financial regulator, which was set up seven years ago, has responded recently after accusations that the agency failed to do enough when dealing with the Northern Rock crisis back in August and September of this year. Northern Rock became the victim of the first run on a British bank in nearly 150 years, and according to some experts the FSA’s failure to do enough has resulted in the agency’s biggest challenge since it was set up. Read more
Drop in insolvency numbers
April 11, 2008
A recent report has shown that the number of people that are being declared insolvent in the UK has fallen across England and Wales. The third quarter of the year saw a drop of 3% on the previous quarter in terms of personal insolvencies. The third quarter of the year also saw a drop of 5% in the level of personal insolvencies compared to the third quarter of last year. Read more
Some borrowers can still enjoy good mortgage deals
April 11, 2008
Some officials have recently stated that there are still some competitive mortgage deals available for borrowers despite the gloomy predictions and outlook that has been seen in the mortgage sector of late. Officials from the online comparison site, mform, have stated that the outlook and panic relating to the mortgage market in the UK has been ‘overdone’ and there are still some competitive and affordable deals around for those that meet the lenders’ criteria. Read more
Many say BoE should have reduced interest rates
April 3, 2008
In an announcement following the November Monetary Policy Committee meeting the Bank of England stated that interest rates would be kept on hold for a fourth month in a row, at 5,75%. They have been at this level since July of this year following a series of five 0.25% rises that took the base rate from 4.5% in August 2006 to 5.75% by July of 2007. Although the move had been widely expected by economists and analysts the Bank of England has been slated by many for not bringing down the interest rate following the meeting. Read more
Call to Bank of England to cut interest rates
April 1, 2008
A number of industry professionals and agencies have been calling upon the Bank of England to cut interest rates to benefit the economy, according to recent reports. Since August 2006 interest rates in the UK have gone up five times, each time by 0.25%. This has taken the base rate from 4.5% to 5.75% leaving many consumers struggling to keep up with mortgage repayments and debt repayments, and leaving many others to face crippling rises in repayments when their low rate fixed rate mortgages come to an end in the coming months. Read more
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.
Read more
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
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