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.
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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
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
Avoid getting into too much debt if you are a student
January 30, 2008
Experts are warning today’s students to make sure that they do not get themselves into too much debt, and to keep the long term effects of debt in mind when taking on finance whilst at college or university. Being a full time student can be difficult in terms of finances, and many students end up getting into high levels of debt whilst at college or university, which can make life difficult when they leave education and go out into the ‘real’ world. Experts are therefore urging students to be careful about getting into debt for frivolous reasons. Read more
Turmoil in financial markets to affect the UK
January 29, 2008
The current turmoil in the financial markets, which was sparked in the sub-prime sector in the United States, is already having and will continue to have an adverse effect throughout the UK according to one industry professional. Professor Willem Buiter, who is a Former adviser to the Bank of England and former member of the Monetary Policy Committee, said that the UK mortgage and lending markets were already feeling the effects of the credit crunch that has been sparked by record levels of defaults in the United States’ sub-prime sector. Read more
Lenders may be able to flag up struggling borrowers more easily
January 27, 2008
Bad debt levels in the UK have caused huge problems for lenders and finance companies over recent years, and lenders have been increasing stringency and looking for new and inventive ways to not only recoup the losses from these bad debts but also to avoid taking too high a risk when it comes to offering finance. In the past this has proven difficult for many lenders, and they have fallen victim to bad debt despite running credit checks and credit scoring on potential borrowers. Read more
Personal loan rate cuts from Barclays
January 25, 2008
Over recent weeks a number of high street lenders have hiked up the interest rates on their unsecured personal loans, some by a whopping 4%, which has made borrowing far more expensive for consumers looking to take out a personal loan. Around nine lenders are thought to have upped the interest rates on their unsecured borrowing, many blaming the effects of the global credit crunch and the turmoil in the financial markets, coupled with increased bad debts. Read more
Credit crunch sends personal loan rates sky high
January 24, 2008
Borrowers in the UK could find themselves hit with extortionate interest rates on unsecured personal loans, as the credit crunch has resulted in a number of lenders raising interest rates by a significant amount, making unsecured borrowing far more costly for many people. Turmoil hit the UK’s financial markets over recent months, and was sparked by the credit crunch in the sub-prime sector of the United States. Read more
Consumers turning to secured loans for home improvements
January 22, 2008
Recent data has shown that many homeowners in the UK are taking advantage of soaring property prices, and are turning to secured loans in order to fund home improvements that could potentially further raise the value of their homes. Many homeowners have seen their property value rise by thousands of pounds in the last year – it is reported that the average property in the UK is rising in value by around £50 per day. With soaring equity levels homeowners are able to enjoy increased borrowing power in the form of secured loans. Read more