Some savers could cash in from interest rate rises
July 15, 2007
Last week saw the Bank of England’s Monetary Policy Committee announce a fifth interest rate rise in the space of a year, with a further quarter point rise taking the interest rate to 5.75%.
For homeowners with variable rate mortgages and those due to come off fixed rate loan deals this spelled more bad news, as it means yet another £15-£20 per month on an average £100,000 mortgage. However, for savers the news isn’t all bad, as some leading Internet savings accounts have decided to pass on the most recent rate rise to their savings interest rates, giving savers the opportunity to cash in on the latest rise. Read more
Could Self-Build Work For You?
July 15, 2007
The ever increasing prices on the housing market have made getting on the first step of the property ladder increasingly difficult. People are looking for alternatives, and one is to build your own home.
Building your own home will still entail getting a mortgage, and that will be a self-build mortgage, a home loan to finance the building of your own home. In this type of mortgage the money is released in instalments, which includes an initial loan so that you can buy the land. Further money is then made available to you in stages. It is important to understand whether payments are made at the beginning of each stage or at the end, as this will make a crucial difference to the state of your finances as you progress. The amount you are able to borrow will depend on your mortgage provider, but a general rule is that a lender will not lend you more than 75% of the cost of the land, or about 60% of the cost of building. One notable exception is Buildstore, the self-build specialists, and they will lend up to 95% of the value of the land. Read more
Interest Rates Will Rise This Week
July 15, 2007
It has been talked about for weeks – ever since the last meeting of the Bank’s Monetary Policy Committee in early June – but the day is nearly here; the day when interest rates will rise again.
The new Prime Minister Gordon Brown had a tough first few days in office with terrorism coming to the fore again, and his replacement as Chancellor Alistair Darling is going to have a tough time of it as well, as interest rates are certain to be push up by another quarter point to 5.75%, taking them to their highest level since March 2001. Read more
Contingency fee firms focus on banks
July 13, 2007
Recent reports have shown that contingency fee law firms – those that work on a no win no fee basis – are now focussing on banks in the UK by offering assistance to customers that wish to reclaim their bank charges from the past six years.
Thousands of customers have been filing claims with their banks for the return of bank charges, which have been applied to the customers’ accounts for exceeding their overdraft limit and for returned cheques and credit cards. In some cases this amounts to thousands of pounds for some customers. Read more
First Direct continues to lose custom
July 13, 2007
The UK’s leading Internet bank, First Direct, is continuing to lose customers hand over fist following its introduction of a £10 monthly charge to certain customers, which came into force in February of this year.
The charge is applied to the accounts of those that do not have a certain amount of money coming into their accounts each month, or those that do not have any other financial products with First Direct other than a current account. Read more
Aviva Insurance could be hit hard after flooding
July 11, 2007
The recent floods across the UK have hit consumers hard, with many suffering severe damage to their homes and belongings as a result of torrential rain, thunderstorms, and strong winds.
However, it is not just the consumers that are facing difficulties – insurance firms are also counting the costs as claims worth millions in total come rolling in. One firm, Aviva, which is the parent company of Norwich Union is expecting claims in excess of £175 million as a result of the damage caused by the recent flooding. Read more
Is the new Abbey current account for you?
July 10, 2007
With all the controversy over banks failing to pass on interest rate hikes to customers in terms of current and savings accounts, many customers have been shopping around to find accounts that pay a more competitive interest rate than their current bank.
Also, many may have been tempted by a new current account made available through Abbey, which offers a generous 6.4 percent interest after tax. However, industry professionals are warning customers to look more closely at the account before making a decision. Read more
Government aims to aid credit unions
July 10, 2007
Credit Unions in the UK are to be given a helping hand by the government, which plans to try and help this sector to expand within the finance industry in the UK in order to give lower income earners greater access to finance.
There was an announcement made last week in relation to a treasury consultation that would be aimed at helping this sector to expand. It is the government’s aim that the availability of these credit unions and financial cooperatives be extended. Read more
Banks pay out to hundreds of customers
July 9, 2007
A number of banks in the UK have paid out refunds to hundreds of customers just prior to the customers’ cases against the banks going to court.
Hundred of thousands of pounds was paid out in refunds as a result of the court cases because the banks did not want to defend themselves in court and risk the judge setting a precedent by using the cases as tests cases which could have gone in the banks’ favour but could also have gone the other way. Read more
Norwich Union considered worst insurer for motorists
July 8, 2007
A recent survey has revealed that Norwich Union, one of the UK’s best known insurance companies, is actually considered the worst insurance choice for motorists in the UK.
The company is well known for its catchphrase ‘Let us quote you happy’, which is run in its advertisements. However, the results of the recent survey indicate that the insurer has not been quoting too many motorists happy at all, leaving them disgruntled and out of pocket.
Read more