Homeowners struggled with mortgages in October
December 31, 2007
According to a recent report from the Council of Mortgage Lenders homeowners faced increasing repayment difficulties in the month of October, with high interest rates and property prices contributing to the financial difficulties faced by homeowners in the UK. According to the report first time buyers had to spend around 20.6% of their monthly income on interest repayments compared to 20.4% in September. October’s figure was the highest since 1991 according to the report. Read more
Another data loss blunder
December 31, 2007
Over recent months there have been more and more stories hitting the headlines with regards to loss of sensitive data, and it seems that the blunders keep occurring time and time again. Just a few weeks ago HM Revenue and Customs admitted the loss of two discs containing personal and bank account details of twenty five million people. This came just weeks after thousands of consumers’ pension details were lost on disc whilst being sent to Standard Life, the company through which they had their pension plans. Again, the discs were being sent from HM Revenue and Customs. Read more
Savers also have to look out for effects of interest rate cut
December 31, 2007
Earlier this month the Bank of England announced that interest rates were at last being cut by 0.25%, taking the base rate from 5.75% to 5.5%. This followed a series of five interest rate rises since August 2006, taking the base rate from 4.5% at that time to 5.75% by July 2007. For borrowers on variable rate loans this means five interest rate increases and rocketing monthly repayments that left many struggling with their finances. The interest rate cut therefore came as welcome news to many borrowers, who hope to see rates continue to fall over the coming year. Read more
Be careful about free or discounted HIPs
December 31, 2007
A warning has been issued to potential home sellers with regards to free or deeply discounted Home Information Packs that are being offered by some estate agents. According to reports some estate agents are offering these packs for just a couple of hundred pounds or even for free, which is tempting for many home sellers that want to save money. However, there is a sting in the tail that home sellers need to look out for, which could end up costing them a small fortune. Read more
Increased consumer awareness over savings protection could have helped Northern Rock
December 30, 2007
According to the Chairman of the UK’s financial regulator, the Financial Services Authority. Northern Rock could have been saved from becoming the first victim of a run on a British bank in 150 year had consumers been more aware of the savings protection that was in place with regards to their money.
When it became public knowledge that Northern Rock had taken an emergency loan from the Bank of England savers flocked to take out their savings, and in the space of just a few days over £2 billion was withdrawn from the bank by worried savers that were convinced that the bank was on the verge of collapse. Read more
Reduce the cost of insurance cover for younger drivers
December 30, 2007
Over recent months the insurance industry has been fighting back against the illegal process of fronting. This is where a younger driver has his or her car insured under a parent’s name in order to keep the premiums down. However, this is not only illegal but also means that the driver is unable to build up any no claims in order to enjoy cost effective insurance in later years. One insurance company, however, has been highlighting ways in which younger drivers can enjoy lower premiums in their own name. Read more
Former fixed rate customers feeling financial pressure
December 30, 2007
According to information from the Bank of England over one fifth of consumers that have come off cheap fixed rate mortgage deals this year have struggled to keep up with repayments on their mortgage as a result of the interest rate altering. The results of a survey involving two thousand people showed that around 22% of those that had been on cheap fixed rate mortgages had struggled to meet their mortgage repayments after their fixed rate period came to an end. Read more
Banks start to cut savings account rates
December 30, 2007
Earlier this month the Bank of England cut the base rate by 0.25% from 5.75% to 5.5% in a move that was welcomed by many industry officials and borrowers. However, the news is not so good for savers, who are now being hit with interest rate cuts on their savings. According to a recent report a number of banks have already cut the interest rate on savings accounts, and in a double whammy some banks may cut interest rates on savings twice with savers being hit with a 0.5% cut in the space of one month. Read more
New limits on ISAs for next year
December 27, 2007
It has been announced that as of April next year the limits on Individual Savings Accounts, known simply as ISAs, will be increased.
The cash and overall investment limits are to go up in 2008, but it could mean that the amount some people can invest in stocks and shares will go down. At present savers can invest up to £3000 each tax year in a mini cash ISA, up to £4000 per tax year in a mini stocks and shares ISA, or up to £7000 in a maxi ISA, £3000 of which can be in cash. Read more
Mortgage lenders to struggle in 2008
December 27, 2007
In a recent announce the UK’s financial regulator, the Financial Services Authority, has told top lenders to prepare themselves for a very tough year ahead.
FSA officials have warned that mortgage lenders are facing a very bleak year ahead, as a result of market conditions and the effects of the credit crunch that has swept across the country’s financial markets. The FSA states that in 2008 many people that come off cheap fixed rate mortgages will find it difficult if not impossible to get on to a more affordable deal. Read more