October 2008 - In the News

New Mortgages - Unanimous prediction of rate cuts

A recent poll of economists, financial institutions and business organisations found a unanimous prediction that the Bank of England will make further cuts to the base rate of interest.

Of the 13 respondents surveyed by the news agency Adfero, all of them were in agreement that the Bank's... More

Unsecured Loans - Darling urges banks to amend lending code

The chancellor of the exchequer Alistair Darling has called on the banking sector to amend its codes on lending, it has been noted.

Mr Darling made his plea following the revelation that the government had no power to set the terms or amounts financial services providers could offer small... More

Debt Consolidation - Osborne warns of debt legacy

Shadow chancellor for the Conservatives has warned that the government's borrowing amid the ongoing financial crisis will leave two generations of Britons in debt.

Speaking on BBC Radio 4's Today programme, Mr Osborne said that Gordon Brown was attempting to relieve the recession by going... More

Unsecured Loans - Student grants cut

Middle-income students who were due to receive government grants have seen them get cut by the government, it has been noted.

Underestimations by the Department for Innovation, Universities and Skills has left a £200 million hole in the sector's budget, leading some 40,000 student to... More

Unsecured Loans - Darling to raise taxes

Tax rises will be carried out in conjunction with spending cuts once the recession is over, the chancellor of the exchequer has stated.

Alistair Darling's pledge has been designed to pull the UK economy out of debt, yet it is unlikely that such increases will occur before polling day in ... More

Debt Consolidation - MPC member calls for further cuts

A member of the monetary policy committee (MPC) has urged additional reductions to be made to the base rate of interest.

Professor David Blanchflower was one of the first members of the Bank of England's financial advisory board to call for interest cuts earlier in the year.

He ... More

Debt Consolidation - UK and France call for increased regulation

The prime minister Gordon Brown and French president Nicolas Sarkozy have jointly called for greater global regulation of the international financial sector, following discussions this week between the pair.

Mr Brown claimed that the International Monetary Fund (IMF) needed increased ... More

Remortgage - 'Hundreds' of Britons losing their homes

The repossession rates in the UK have reached a level resulting in 120 Britons a day losing their homes, it has been noted.

According to the Mirror, this is a rise of 70 per cent in a year, while house prices have fallen eight per cent, seeing many people living in negative ... More

Unsecured Loans - Rate cuts are no "magic bullet"

A member of the Bank of England's monetary policy committee (MPC) has warned that further reductions to the base rate of interest will not act as a "magic bullet" to end the ongoing financial crisis.

Tim Besley stated that patience was needed by Britons as a rate cut was ... More

Unsecured Loans - Darling to deny irresponsible borrowing

The chancellor of the exchequer is expected to deny that the government is irresponsibly borrowing money to pull the UK out of the ongoing economic slump today (October 29th).

This follows criticisms from a group of leading economists in the Sunday Telegraph that officials were not taking... More

Unsecured Loans - Loan applications 'may rise'

The number of Britons applying for secured and unsecured loans is likely to rise as people attempt to protect themselves during the ongoing economic downturn, it has been suggested.

Tom Howard,... More

Debt Consolidation - UK spending plan 'condemned'

A group of the UK's leading economists have condemned the chancellor of the exchequer's proposed spending plan, it has been noted.

In an open letter to the Sunday Telegraph, Alistair Darling's scheme - which has been designed to aid the domestic financial sector through the economic ... More

Unsecured Loans - BOE predicts stability risk

The Bank of England (BOE) has claimed that a heightened risk has been posed to the UK's financial stability by the ongoing economic crisis and credit crunch.

In addition, the central financial services provider suggested that the international monetary community now faced the "most ... More

Debt Consolidation - Brown hints at joint rate cuts

The prime minister has suggested that falling oil prices and lower inflation may lead to international central banks opting to make further joint interest rate cuts, it has been claimed

According to the BBC, Gordon Brown said this downward movement could give scope to monetary ... More

Unsecured Loans - Level salaries 'create spending cutback'

People whose salaries are staying level during the ongoing credit crunch are now cutting back on their spending, one sector commentator has claimed.

Roger Edwards, an insurance expert for Bright Grey, said that these decisions had been made in order to meet the increasing prices of ... More

Remortgage - Homeowners 'should talk to lenders'

Homeowners who are finding it a struggle to keep up with their mortgage payments during the ongoing financial crisis should get in contact with their lenders "sooner rather than later", one sector commentator has claimed.

Al Elliot, advisor at the Homeowners Advice Centre, said ... More

Debt Consolidation - Recovery 'not expected until 2011'

It is unrealistic to begin talking about a proper recovery of the UK economy until 2011, one sector commentator has claimed.

Michael Baxter, economist at Defaqto, said that there was always a danger that lessons from the ongoing financial crisis would not be learned if governments ... More

Debt Consolidation - Businesses 'may impose bans'

With the prime minister admitting this week that the UK is heading for a recession and the credit crunch continuing to rumble on, many businesses are now looking to take cost-cutting measures.

Gill Upton, editor of The Business Travel Magazine, said that one such economic reduction may be... More

Debt Consolidation - Brits 'not ready for recession'

Seven out of ten Britons have admitted they are not ready for a recession, according to the results of a recent survey.

Fool.co.uk has reported that the Office of National Statistics is expected to announce later today (October 24th) that the economy is definitely heading for a ... More

Remortgage - Economy 'braced for recession'

It is believed that new figures set to be released today (October 24th) will reveal that the economy has shrunk in recent months and brought the UK to the brink of recession.

According to the BBC, Gross Domestic Product is likely to have fallen by between 0.1 per cent and 0.5 per cent ... More

Unsecured Loans - 'Take care' with outgoing reductions

Although many Britons may be keen to reduce their outgoings as the credit crunch continues and recession concerns increase, it is important that they take care when deciding where to make a cut, one sector commentator has claimed.

Graeme Trudgill, technical and corporate affairs executive... More

Unsecured Loans - 'Why wait' for interest rate cut?

One sector commentator has questioned whether the Bank of England (BOE) should wait until November to make the next cut to the base rate of interest.

New Star's Simon Ward said a big reduction to interest rates was expected to be carried out by the monetary policy committee (MPC) next ... More

Credit Cards - Britons advised to start saving

Britons have been advised to start budgeting their income and to make cutbacks where possible by one sector commentator.

Cesarina Holm-Kander, business and personal finance journalist and host of Channel 4's Your Money or Your Wife, said that some people may even consider seeking ... More

Remortgage - Brown admits recession

The prime minister used the term recession for the first time in public yesterday (October 22nd) as he spoke to the House of Commons.

Gordon Brown noted that the government had taken action on the collapsed banking sector and now was the time to address the issue of climbing property ... More

Debt Consolidation - Collapsed bank workers to receive bonuses

Workers at the collapsed Lehman Brothers bank are set to receive substantial bonuses amid the ongoing financial crisis, it has been noted.

According to the Mirror, staff at Lloyds TSB will also be getting bonuses, following the news that £37 billion of the government's rescue package... More

Unsecured Loans - Banks to help small businesses

Banking sector chiefs are due to attend a summit which has been designed to offer support to small businesses through the economic downturn, it has been noted.

According to Wales Online, business secretary Peter Mandelson and chancellor of the exchequer Alistair Darling will also be in ... More

Debt Consolidation - King warns of impending recession

The governor of the Bank of England has warned that the UK economy is heading for a recession, it has been noted.

Mervyn King said that Britain is now suffering its worst financial crisis since World War I and it was up to policy makers to prevent inflation from slowing even ... More

Unsecured Loans - Food inflation 'slowing'

Food inflation is beginning to slow down and is likely to continue to do so, according to one sector commentator.

Richard Dodd, head of media and campaigns at the British Retail Consortium, said in August price inflation for foodstuffs was at ten per cent, which fell to 9.1 per cent in ... More

Debt Consolidation - Young adults 'at risk'

Young Britons are likely to be the people left the most at risk by the government and financial institutions once the recession hits, a new study has found.

The Chartered Insurance Institute has claimed that Insecure, Pressurised, Over-taxed and Debt-ridden 18-34 year olds - IPODs - have ... More

Debt Consolidation - Lenders should 'pass on Libor rate cut'

Lenders need to begin passing on recent Libor rate cuts to the consumer, one sector commentator has stated.

Darren Cook, spokesperson for Moneyfacts, made his claims following the news that the British Bankers' Association had revealed the benchmark three-month sterling lending rate ... More

Unsecured Loans - Economic recovery 'could take years'

The recovery of the economy in the UK could take years, but there are still some opportunities, a number of sector commentators have agreed.

A roundtable discussion organised by Threadneedle saw Leigh Harrison, the firm's head of UK equities and Quentin Fitzsimmons, head of government ... More

Remortgage - Inflation 'has peaked'

Inflation levels in the UK have "almost certainly peaked", according to one sector commentator.

Jonathan Loynes, chief European economist at Capital Economics, said he believed rates would begin to fall sharply over the next year or so.

He added that this was partly ... More

Debt Consolidation - Darling eases spending rules

The chancellor of the exchequer is set to ease current spending rules in an attempt to beat the recession, it has been noted.

Alistair Darling has hinted that he will be using next month's pre-budget report to relax long-standing fiscal rules, the Guardian reports.

His move has ... More

Unsecured Loans - UK 'already in recession'

The UK economy is already in a recession following a difficult three months, some sector commentators have claimed.

According to the BBC, the Ernst & Young Item Club has claimed the British economy will decrease by one per cent next year and will not begin to recover until 2010, when ... More

Remortgage - FSA warns of tougher measures to come

The new chairman of the Financial Services Authority (FSA) has claimed that the UK banking sector will now face a much stricter regime of regulation, it has been noted.

According to the Times, Lord Adair Turner admitted that in the past the financial watchdog had supervised the industry ... More

Debt Consolidation - Global re-design of capitalism planned

European leaders are set to travel to the US to meet with President George Bush and urge him to re-design international capitalism, it has been noted.

According to the Guardian, the planned discussions will take place just days after a European Union summit on the issues closed with the ... More

Unsecured Loans - Mixed views on bailout success

A recent poll of five economists has revealed that there are still mixed views about the potential effectiveness of the government's rescue package for the UK banking sector.

While two of the respondents to the survey - which was carried out by the news agency Adfero - predicted the ... More

Unsecured Loans - Pension rise 'too little, too late'

The recent increase in the state pension is "much too little, much too late", according to one charity for Britain's older population.

A statement by Help The Aged claimed that, while the rise to five per cent would have been sufficient and was large compared to the standard of ... More

Remortgage - 'Too late to be saved' from downturn

It is probably too late to save the UK from a "fairly serious" slowdown, which is most likely to manifest itself as a recession, one sector commentator has claimed.

Ben Read, managing economist at the Centre for Economics and Business Research, said that the government's ... More

Unsecured Loans - Bailout at threat?

The government's internationally praised rescue package designed to support the collapsed UK banking system may be at threat, it has been claimed.

According to the Guardian, Lloyds TSB - which is in the middle of a planned merger with HBoS - is now requesting that the Treasury ease the ... More

Debt Consolidation - Dividends ban 'to be relaxed'

The five-year ban on paying dividends that has been imposed on the newly nationalised banks by the Treasury is set to be relaxed, it has been noted.

According to the Times, waiving the rule for financial services providers, which include Royal Bank of Scotland, Lloyds TSB and HBoS, could ... More

New Mortgages - Retirement savings being 'de-prioritised'

The ongoing credit crunch and rising levels of inflation could be leading many Britons to de-prioritise saving for their retirement years, one sector commentator has claimed.

According to Gordon Lishman, director general of Age Concern, government figures have revealed that some seven ... More

Remortgage - Concerns continue in Wales

Fears are continuing to mount among council workers in Wales, as leaders have warned that services may suffer.

The news comes following reports that finance minister Andrew Davies had ruled against a bail-out for local authorities that had invested in the collapsed Icelandic banking ... More

Unsecured Loans - Inflation reaches 16-year high

Inflation rates in the UK reached a 16-year high, recently released figures have suggested.

According to the Independent, the Consumer Price Index rose to 5.2 per cent last month, up from 4.7 per cent in August and exceeding sector commentators' predictions.

However, the ... More

Debt Consolidation - PM meets European leaders

The prime minister has travelled to meet European leaders to begin discussions on the model being designed to rescue the international banking sector, it has been noted.

According to the Telegraph, Gordon Brown is making the trip to a European Council meeting in Brussels as the planned ... More

Remortgage - UK package to become EU blueprint

The government's £500 billion bailout scheme, which was designed to rescue its flagging banking sector, will become the blueprint for a similar package being drawn up by the European Union (EU), it has been claimed.

According to the Telegraph, the EU will use the package in its ... More

Unsecured Loans - Iceland 'considers joining EU'

Iceland is to resume its consideration to join the European Union (EU), following a week that almost saw the collapse of its banking sector, it has been noted.

According to the Times, the country has once again started to speculate over the matter after Alistair Darling, the UK chancellor... More

New Mortgages - Government takes control of banks

The government will effectively take control over three of the UK's high street banks, it has been noted.

This will see Gordon Brown's party being accountable for the financial services providers to more than 40 million consumers and around half of the mortgage market, the Telegraph ... More

Debt Consolidation - Debt levels 'increasing'

The level of debt currently being seen in the UK is on the rise, according to recent figures.

Research conducted by Unbiased.co.uk has revealed that for every £1 spent between April and June, the British public has borrowed 15 pence, as the credit crunch takes its toll.

This... More

Remortgage - Government pledge "misguided"

The government's promise to protect all of the retail deposits that were invested in IceSave - the Icelandic bank - is the most "dangerous, misguided" act so far witnessed in the ongoing credit crunch, according to one sector commentator.

Independent policy advisor Dr Ros ... More

Unsecured Loans - World Bank leader speaks out

The leader of the World Bank has spoken out about the ongoing international economic slowdown.

According to the Telegraph, Robert Zoellick said the current financial crisis was a "man-made catastrophe" and that the response would be both fear and anger.

He went on to ... More

Debt Consolidation - Council workers' 'fears grow'

Concerns are growing that some public sector employees will not get paid this month, due to council payrolls being caught up in the economic crisis that hit Iceland's banks last week, it has been noted.

According to the BBC, leaders of such groups have now turned to the government to see ... More

Debt Consolidation - Loan rates 'still climbing'

The rates attached to loans in the UK are continuing to rise, according to one sector commentator.

Recently released research by Moneyfacts revealed that a few months ago it would be difficult for borrowers to find a rate that was less than seven per cent.

However, the website ... More

Unsecured Loans - Brown urges global support

Gordon Brown has called on his international counterparts and their governments to come up with a similar bailout scheme to the UK's in order to support their banking sectors.

Earlier in the week, Labour officials unveiled the new rescue package which will use £50 billion of ... More

Debt Consolidation - A new cold war?

Officials from the UK Treasury are set to travel to Iceland's capital to discuss the country's current bank crisis.

The delegation will fly to Reykjavik, following concerns that the nation is on the brink of bankruptcy, causing fears to rise over the safety of UK ... More

Debt Consolidation - Brits 'heading into the red'

One in ten borrowers feel that their debts are spiralling out of control, however, 62 per cent have continued borrowing, it has been claimed.

Such is the conclusion of recent research by the price comparison website moneysupermarket.com, which found that almost one in three of the people ... More

Remortgage - A new era of "global banking"

Recent developments in the UK financial sector suggest that the dawn of a new era of global banking has arrived, according to one sector commentator.

Paul Niven, head of asset allocation at F&C Asset Management, said the planned government bailout of domestic banking institutions - ... More

Unsecured Loans - 'Worse to come' for UK economy

Following the Bank of England's (BOE) day early interest rate cut yesterday (October 8th), economists have warned that worse is still to come.

According to the Guardian, the ongoing financial market turmoil will continue to put pressure on jobs, property prices and economic growth in the ... More

Debt Consolidation - BOE cuts interest rates a day early

The Bank of England (BOE) slashed interest rates by half a percentage point yesterday (October 8th) in a historic move that came one day before the monetary policy committee (MPC) was set to meet to vote on the issue.

It also came one day after the government announced plans to implement ... More

Credit Cards - Care urged on credit card use

Consumers in the UK have been advised that they should not use their credit card for a transaction if they know they do not have the available finances.

David Kuo, head of personal finance at ... More

New Mortgages - Pressure for "big" MPC move

The pressure is mounting for the monetary policy committee (MPC) to make a "big move" when it meets to vote on interest rates tomorrow (October 9th), one sector commentator has claimed.

New Star analyst Simon Ward explained that in the wake of the 9/11 terrorist attacks seven ... More

Unsecured Loans - Consumer confidence falls

Britons' financial optimism within the UK fell by three percentage points during September, according to new figures.

The 2008 Nationwide Consumer Confidence Index for last month revealed it now stood at 50 points, following two months of economic uncertainty as concerns over the ... More

Debt Consolidation - UK follows US with rescue package

The prime minister has welcomed a rescue package designed as a similar bail-out option for the domestic banking sector as has recently been seen in the US.

According to the Telegraph, Gordon Brown said the plan - which will use £50 billion of taxpayers' money - is a "far ... More

Unsecured Loans - Loan rates climb 'up to 9 per cent'

In the last month, eight financial services providers have increased the rates of unsecured loans by as much as up to nine per cent, according to recent figures.

Data compiled by uSwitch.com ... More

Debt Consolidation - Economists predict interest rate cut

Following a recent poll, the majority of financial sector commentators believe that the monetary policy committee will make a cut to the current base rate of interest on Thursday (October 9th).

Seven out of 12 of the economists, fiscal institutions and business organisations surveyed by ... More

Unsecured Loans - Interest rates 'won't reach 3.5 per cent'

Interest rates are likely to receive a cut by the end of the year, however, they will not reach 3.5 per cent as they did in 2003 and 2004.

Such is the prediction of Ross Walker, economist at Royal Bank of Scotland, who added that he believed the first reduction to the base rate would be ... More

Unsecured Loans - Darling: Government will not call for rate cut

The chancellor of the exchequer Alistair Darling has told how the government will not urge the Bank of England (BoE) to make cuts to the current base rate of interest, it has been noted.

In news that may be of interest to those seeking More

Unsecured Loans - "No good" being told to tighten belts

It is no good for the government to tell lower-paid public sector employees to tighten their belts when prices "are being allowed to spiral", one sector commentator has claimed.

In news that may be of interest to those seeking More

Debt Consolidation - Interest rates at '3.25 per cent next year'

UK Interest rates are likely to come down to 3.25 per cent by next year, according to one sector commentator.

In news that may be of interest to those on the hunt for debt consolidation advice, ... More

Unsecured Loans - FSA ban 'won't solve credit crunch'

The recent ban on short-selling by the Financial Services Authority (FSA) is not something that will solve the causes of the credit crunch at the moment, according to one sector commentator.

In news that may be of interested to investors looking for More

Unsecured Loans - A caravan for Christmas

Britons looking to celebrate Christmas in an unusual way this year have been advised by one sector commentator to consider a caravan holiday.

In news that may be of interest to those on the lookout for More

Unsecured Loans - Older generation "much more adventurous"

The older generation has become much more adventurous when it comes to picking their holidays, one sector commentator has claimed.

In news that may be of interest to people on the hunt for More

Unsecured Loans - BoE 'should send strong message'

The Bank of England (BoE) has been urged to send a strong message to Britons, pledging that they are set to deal with "the very real probability" of a recession, it has been claimed.

In news that may be of interest to those seeking More

Remortgage - Homeowners' development rights "could evaporate"

The permitted development rights of homeowners could "evaporate" under the new reform posed by the government, one sector commentator has claimed.

In news that may be of interest to those seeking to More

New Mortgages - First-time buyers urged to make sacrifices

First-time buyers have been advised by one sector commentator to make sacrifices in order to save for a mortgage.

In news that may be of interest to those seeking a new mortgage, Michael O'Flynn, ... More

Unsecured Loans - Wall insulation urged

Homeowners have been advised by one sector commentator to invest in cavity wall insulation in order to reduce their heating bills.

In news that may be of interest to those seeking unsecured ... More

Unsecured Loans - Government 'not doing enough' to guarantee savings

The majority of Britons believe the government is not doing enough to secure their personal savings.

In news that may be of interest to those seeking unsecured loans, a poll conducted in recent... More

Credit Cards - Holidays with a partner "is where it's at"

Going on vacation with a partner and enjoying some quality time with each other is "really where it is at", according to one sector commentator.

In news that may be of interest to couples who share a More

New Mortgages - Smart meters 'help save energy'

Fitting smart meters in the home can allow households to keep track of how much energy they are consuming, according to one sector commentator.

In news that may be of interest to those on the hunt for a More

Unsecured Loans - 'Better decisions' made through budgeting

People who keep track of where their money is going will be able to make the best financial decisions, one sector commentator has claimed.

In news that may be of interest to those seeking unsecured... More

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