Northern Rock borrowers running into financial problems
October 5, 2008
Recent research has suggested that Northern Rock mortgage customers may be running into financial problems at a far faster pace than other borrowers, with repossession figures showing that a large proportion of homeowners that have been losing their homes are Northern Rock borrowers. The research was carried out by Standard and Poor, and indicated that one in every thirteen repossessions was a Northern Rock homeowner. Read more
Level of borrowing on personal loans decreasing
September 5, 2008
Recently released figures have indicated that the level of borrowing on personal loans has been falling, as funding for both mortgages and unsecured loans continues to dry up. Officials from the price comparison service uswitch.com claim that the ongoing financial crisis in the UK’s money markets is now affecting unsecured personal loans, with fewer people able or willing to take out this type of finance. Read more
Even wealthier borrowers are now struggling to repay their loans
August 27, 2008
A recent report has claimed that suffering severe financial difficulty is no longer a problem that affects only low income consumers. The report shows that financial difficulties are now even hitting homeowners living in fairly affluent areas, indicating that the current financial climate is also impacting heavily on the finances of those that would normally be considered to be fairly well off. Read more
FSA accused of making unfair assumptions by lenders
August 26, 2008
The UK’s financial regulator, the Financial Services Authority, has recently released a report that has criticised all lenders over the practices that are used when it comes to repossession proceedings. The regulator has said that if lenders do not buck up their ideas when it comes to their practices in relation in repossessions then it will take action wherever necessary, but lenders are annoyed that the regulator has tied all lenders to the same brush, and have said that the FSA should not have implied that all lenders are to blame for problems such as these. Read more
NatWest threatened cancer victim with repossession
August 22, 2008
A household name bank has been accused of being inhuman after it was found that it had threatened a cancer victim with repossession for failure to pay a loan. The seventy year old widow ran into problems paying her loan after being diagnosed with cancer, and she contacted the bank to see if they could help under the circumstances. Until then she had put her cottage up for sale, but had to take it off the market so that she could focus on her treatment. Read more
The benefits of an unsecured loan
August 20, 2008
There are many different loan types available these days, and consumers that are looking for finance can choose a loan that caters for their individual needs and circumstances. There are loans available for all sorts of people, including homeowners, non-homeowners, and even those with bad credit. It is important that you find a loan that is suited to your needs and your circumstances before you apply otherwise you risk wasting your time applying for a loan that you are not eligible, and also damaging your credit as a result of rejection. Read more
Searching for the right loan
August 18, 2008
In the past finding the right loan could be a difficult and time consuming process, even though credit conditions were pretty relaxed and there was a wide range of loan products on the market to choose from. These days things have changed for the worse when it comes to finding the right loan, with the global credit crunch resulting in such tight credit conditions that the whole process has become increasingly difficult and time consuming, particularly for those with less than perfect credit. Read more
Payday loan popularity increases
July 15, 2008
Over recent months many consumers have faced increasing difficulties when it comes to getting finance of any sort, with the global credit crunch resulting in far tighter lending criteria and far tougher credit conditions. Many of those looking for a loan have found that they are unable to get finance from a mainstream lender, particularly of they have damaged credit or are on low incomes, and according to some industry officials this is resulting in a larger proportion of consumers turning to payday loans in order to fund shorter term emergencies. Read more
Consumers warned to be careful about doorstep lenders
July 14, 2008
It seems that some doorstep lenders are enjoying a healthy year this year, as the global credit crunch continues to take its toll on households, and an increasing number of consumers, such as those with damaged credit or low incomes, find it increasingly difficult to get credit through mainstream lenders. The credit crunch has resulted in far tighter credit conditions coming into effect, and this has resulted in some people being forced to take finance from doorstep lenders. Read more
Competition Commission states still a problem with loan insurance sales
June 29, 2008
Officials from the Competition Commission have stated that there is still a serious problem with the sale of payment protection insurance, which is sold alongside loans and other forms of credit. This type of cover can be very costly, and in the past there have been a number of investigations, as it was found that many lenders and providers were selling the cover inappropriately. It was found that many were selling the cover to those that could never benefit from it, such as the retired or self employed, some were pushing consumers into taking out the cover even if they were reluctant, and others were adding the cover onto the finance deal without the knowledge of the borrower. Read more
Borrowing rates still rise despite base rate cuts
June 23, 2008
There have been three base rate cuts since December of last year, with the Bank of England reducing rates by 0.25% each time, taking the base rate from 5.75% to 5%. Over the past couple of months inflationary pressures have resulted in the central bank leaving rates on hold, despite concerns over the slowing economy. Inflation has now soared to 3.3%, which is way above the government target of 2%. 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
PPI still being mis-sold to millions
June 10, 2008
Over the past couple of years there has been a major crackdown on the sale of Payment Protection Insurance to consumers that were not suited to the plans. However, according to consumer campaign officials and watchdogs, there is still evidence of large scale mis-selling of this type of cover to millions of people that can never actually claim on the insurance, and are therefore wasting their time. Read more
The base rate cut failed to benefit credit card customers
June 5, 2008
There have been three base rate cuts over recent months, with the Bank of England cutting the base arte by 0.75% between December 2007 and April 2008. Despite these rate cuts not all lenders have passed on the cuts to borrowers, and there has been a lot of controversy over lenders that have failed to pass on the base rate cuts to mortgage and loan customers, with many claiming that the lenders in question are adding to the slowing economy by leaving borrowers to struggle despite the base rate cuts. 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
Bank of England under pressure to cut rates
April 12, 2008
The Bank of England has found itself facing pressure to cut interest rates again, following reports that house price growth had fallen to its lowest level in twelve years. According to officials from Nationwide house prices today are just 1.1% higher than they were at this time last year, and this reflected the smallest increase since 1996, when the Conservative Party was still in power. 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
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