December 2008 - In the News
Remortgage - Brits get ready to save more
Saving more money has been given as a top new year's resolution by almost half of British consumers, according to the findings of new research.
The survey, conducted by the Association British Insurers (ABI), revealed that 47 per cent of people aim to put more of their cash to one side in... More
Debt Consolidation - Gloomy predictions for the economy
The majority of Britons consulted as part of a recent poll believe that the economy will not improve in 2009.
According to the survey, conducted in Leeds by the news agency Adfero, 59 per cent of respondents believed the economic outlook for the new year was bleak, while only 33 per cent ... More
Credit Cards - Banks 'to get tougher'
In the new year, the banking sector is likely to get tougher over what it will let customers have in terms of available credit, one sector commentator has claimed.
David Kuo, head of personal finance at money website Fool.co.uk, said that More
Unsecured Loans - Recession 'will start to improve in 2010'
Although the economic recession is not over and done with, according to one sector commentator it will start to ease and improve in 2010.
Mark Parker, executive chairman of Talkbiznow.com, said that his personal opinion was that the economy would remain in this situation for the next two ... More
Unsecured Loans - A worrying new year
Britons are becoming increasingly concerned about the cost of living, new research has found.
The study, which was compiled by reallyworried.com, found that the average person in the UK now spends two-and-a-quarter hours a day worrying.
And the top five concerns were found to be ... More
Debt Consolidation - Debt concerns 'mounting'
The number of calls to the government-funded National Debtline has increased by more than 40 per cent in a year, as Britons' concerns for their finances amid the credit crunch and an impending recession rise, it has been reported.
While in 2007, the average number of calls received by the... More
Remortgage - Pound closes in on euro
Sterling is coming ever closer in value to the euro, after the latter rose to an all-time high of €1.02 against the pound yesterday (December 29th).
It is now believed that these reports could highlight that the impending economic recession the UK is facing could be even worse than ... More
Debt Consolidation - Farewell to the post-Christmas headache
The post-Christmas financial headache is likely to be less painful this year than it has been in the past, one sector commentator has claimed.
Darren Cook, spokesperson for Moneyfacts, said that this was because as Britons became more aware of the effect the credit crunch could have on ... More
Unsecured Loans - A winter migration to the credit card
According to one sector commentator, there has recently been a migration in consumer spending from the debit card to the credit card.
Donald MacLeod, head of Sainsbury’s credit cards, said that ... More
Unsecured Loans - 'One million job losses' predicted
It has been predicted that up to one million UK workers could face losing their jobs over the course of the next two years as the country prepares itself for an economic recession.
A report by the Chartered Institute of Personnel and Development (CIPD) has revealed that as many as 300,000... More
New Mortgages - House prices 'to fall 12 per cent'
Property prices in the UK are likely to fall by 12 per cent, after declining 8.7 per cent during 2008, new research has found.
According to the study by Hometrack, the figures suggest that the market could be edging down following a 0.9 per cent monthly decline in December, in contrast to... More
Unsecured Loans - Men hit the shops
Many men who have left their Christmas shopping to the last minute may today (December 24th) be making a mad dash to the shops, one sector commentator has claimed.
According to research by Sainsbury's Bank, this is because males are more likely to leave things late, with 54 per cent of ... More
Remortgage - Bank's deputy governor appointed
The Bank of England has appointed a new deputy governor.
Paul Tucker will take over the reins from Sir John Gieve, who is set to leave the role in March 2009.
The Bank of England announced that an evidence session on the matter will take place on January 21st at the House of ... More
Debt Consolidation - Britons set to log on
Today (December 24th) could see up to five million Britons logging on to the internet to snap up a host of festive bargains, therefore abandoning the traditional trip to the highstreet, it has been reported.
According to the Independent, Dixons, Comet, John Lewis and several other ... More
Unsecured Loans - Recession 'may be worse than feared'
The UK's slide into recession is picking up pace following yesterday's (December 23rd) reports that gross domestic product for the three months up to September fell by 0.6 per cent - more than the original estimate of 0.5 per cent.
This was the steepest fall in 18 years and suggests that ... More
Unsecured Loans - Pensions 'not a determining factor for jobseekers'
Pension funds are no longer being used as a determining factor by Britons seeking work, one sector commentator has claimed.
Gerwyn Davies, public policy adviser from the Chartered Institute of Personnel and Development, said this was because people were just searching for available ... More
Debt Consolidation - Inflation 'is healthy'
According to one sector commentator, inflation is healthy because it creates wealth.
However, Darren Cook, spokesperson for Moneyfacts, said that once there was deflation during a recession, it was not good for the economy as people postponed big payments in order to wait for prices to ... More
Unsecured Loans - GDP shrinks 0.6 per cent
Gross domestic product in the UK shrank by 0.6 per cent between July and September of this year, according to new figures.
The data compiled by the Office for National Statistics reveals the biggest fall since 1990, despite previous reports that the estimated contraction had been 0.5 per ... More
Remortgage - BOE 'failed to see crisis severity'
The Bank of England (BOE) failed to predict the potential severity of the ongoing economic crisis before it began, one senior executive of the establishment has admitted.
Deputy governor of the BOE Sir John Gieve - who is due to retire from his position in March - explained that officials... More
Unsecured Loans - Sprouts the way to do it
Britons may find this Christmas that sprouts are not only good for their health but also for their wallets, one sector commentator has claimed.
Debbie Jennings, VAT director at PKF accountants and business advisers, said that this was because people who already felt their finances were ... More
Debt Consolidation - Avoiding depression 'the immediate priority'
An immediate priority in the UK financial markets is to stop the economy from slipping from what could potentially be a severe recession into a situation that resembles a depression, one sector commentator has explained.
Jonathan Loynes, chief European economist at Capital Economics, said... More
New Mortgages - Government 'should incentivise new lending'
Further action is needed from the government to incentivise new lending, one sector commentator has claimed.
A spokesperson for The Council of Mortgage Lenders said that she believed market conditions would be "worse" in 2009.
She added that a major issue was shortage ... More
Unsecured Loans - Reduced credit 'affecting inflation'
The amount of credit currently available on the market is decreasing and this is having an effect on inflation as there is now less money to go around, one sector commentator has claimed.
Darren Cook, spokesperson for Moneyfacts, said that Britons were now slowing down on their spending ... More
Remortgage - Has the bubble burst?
One of the ways of interpreting the ongoing financial crisis, according to one sector commentator, is the bursting of a bubble of trust.
Colin Melvin, chief executive officer of Hermes Equity Ownership Services, explained that this was not only the trust between banks, but also that ... More
Unsecured Loans - Christmas a taxing time for the wallet
Taxes on traditional Christmas items are proving to be hitting the wallets of Britons hard this year, one sector commentator has claimed.
Debbie Jennings, VAT director at PKF accountants and business advisers, said that some people went on "booze cruises" in order to stock up on... More
Debt Consolidation - FSA 'to explore issue of consumer responsibility'
The Financial Services Authority (FSA) has announced that it has adopted a two-pronged approach to achieving its consumer protection and consumer awareness objectives.
This is set to include setting, monitoring and enforcing standards for businesses and providing education, information ... More
Unsecured Loans - Consumer confidence 'improves'
Confidence among British consumers has improved for the second consecutive month, according to the findings of a recent survey.
Market research group GfK NOP reported that confidence in the UK rose by two points to -33 during December, although this is still close to an all-time ... More
Debt Consolidation - Sterling hits new low
The pound has become increasingly weak in recent weeks, it has been reported.
It is believed that the downward movement has resulted from rising expectations that the Bank of England's monetary policy committee will make further cuts to the base rate of interest in the new ... More
Debt Consolidation - Universities 'coping at crunch time'
Universities and colleges in the UK are generally maintaining a strong financial position despite the ongoing economic downturn, one sector commentator has claimed.
Roger Grinyer, head of corporate communications at the Higher Education Funding Council for England, explained that it would... More
Remortgage - 'No insurmountable obstacles' to zero interest rates
There do not appear to be any insurmountable technical obstacles standing in the way of the base rate of interest falling to zero in the UK, in the opinion of one sector commentator.
Jonathan Loynes, chief European economist at Capital Economics, said that with the US Federal Reserve ... More
Unsecured Loans - The crunch that stole Christmas
Christmas may always be a time when Britons feel a greater strain on their finances than throughout the rest of the year, however, the 2008 festive season has proved to be particularly demanding.
According to research by LV=, 3.2 million children have admitted that their parents' spending... More
Remortgage - Still paying for last year's Christmas?
More than 4.5 million credit card customers are still paying off the debts they built up through spending last Christmas, with 2008's festive celebrations now only a week away.
According to research by Money Expert, many Britons could now be pushing themselves further into the red, as ten... More
Debt Consolidation - Avoid the sting
Britons may be able to avoid being stung by unnecessary inheritance tax (IHT) by seeking the recommendations of a financial adviser, rather than a solicitor, one sector commentator has claimed.
Alex Pegley, director of Calculis, said that this was because a legal professional may only ... More
New Mortgages - Government attempts private lending boost
The Treasury has taken steps to boost lending from private organisations to the UK's flagging banking sector, it has been reported.
Chancellor of the Exchequer Alistair Darling has also revealed that it will now be cheaper for lenders to receive support from the taxpayer.
The ... More
Unsecured Loans - Brits 'may sacrifice short overseas breaks'
Britons are likely to sacrifice short breaks abroad "altogether" because of the ongoing economic downturn, one sector commentator has claimed.
However, Elliot Frisby, press and public relations manager for VisitBritain, noted that in spite of this, fewer people would deem it ... More
Debt Consolidation - King: Economy is worsening
The governor of the Bank of England has warned that the economy is worsening, it has been reported.
Mervyn King said that the risk was now substantial that inflation could fall to below one per cent by next year, although currently it is still more than double the government target of two... More
Unsecured Loans - Discounting 'behind retail surge'
The move to cut VAT to 15 per cent made by the chancellor in the pre-Budget report is not the main factor behind a surge in retail sales, it has been claimed.
An expert at Sainsbury's Finance said that while this may have had some effect, its overall impact is small.
Instead, it... More
Unsecured Loans - Sterling trading on the up
There has been an increase in the level of trading on currency markets as investors look to make good use of the slide in the value of sterling.
According to Barclays Wealth, the drop in value of sterling against the euro has led to more trades in the currency pair.
Barbara ... More
Debt Consolidation - Inflation heads down
The overall rate of inflation from the Consumer Prices Index fell to 4.1 per cent in November.
A drop of 0.4 percentage points was recorded from the figure released in October, the Office for National Statistics reveals.
Once again, the largest factor affecting the downward trend... More
Debt Consolidation - Staying safe online
Britons who use the internet to go shopping should ensure that their personal details are secure when their financial information is online, one sector commentator has claimed.
Tony Neat, managing director of Get Safe Online, said that during the credit crunch, the net was a ... More
Unsecured Loans - Taking credit card care
Consumers in the UK should take care of their credit card as to skim the plastic or write down the information only takes a few seconds, one sector commentator has warned.
Danny Harrison, card fraud ... More
Unsecured Loans - Bank warns of negative equity
The Bank of England is set to warn homeowners in the UK that more households will be pushed into negative equity due to instability in the international financial markets, it has been reported.
In its 2008 Quarterly Bulletin, the Bank claimed that the issue facing its monetary policy ... More
Remortgage - Major steps into economic debate
The former Conservative prime minister John Major has criticised the current Labour prime minister Gordon Brown over the state of the UK economy, it has been reported.
Sir John, speaking on BBC One's Andrew Marr show, predicted that the length and severity of the impending recession could... More
Debt Consolidation - UK consumer culture 'changing'
Consumer culture in the UK is changing due to everyone being "skint", one celebrity commentator has claimed.
Gok Wan, stylist and presenter of Channel 4's show How to Look Good Naked, said it was a depressing time and that a decline in the number of people shopping was proving ... More
Credit Cards - Taking steps against fraud
Consumers should take care to follow the simple steps of making sure that when they use a credit card they are in control of it to decrease the risk of becoming a victim of fraud, one sector commentator has ... More
Credit Cards - 'Fair principles' agreed on by credit card firms
Credit card providers are set to delay increasing interest rates for customers who have fallen into arrears on meeting payments, it has been reported.
This means that customers will have the right to ... More
Unsecured Loans - Holidays 'a necessity'
Britons view their annual holiday as a necessity rather than a luxury and are willing to make financial sacrifices elsewhere in their day-to-day lives in order to fund it, one sector commentator has claimed.
Ian Bradley, public relations officer at the Association of Independent Tour ... More
Remortgage - 'Light at end of tunnel' for the pound
There is a light at the end of the tunnel for the pound sterling, with one sector commentator optimistic that it will pull back from the edge in 2009.
Jeremy Cook, chief economist at World First, said that the sterling was likely to enjoy a positive 12 months, despite its current ... More
Unsecured Loans - BoE expert predicts 2009 end for downturn
The UK economy is likely to remain in its current unstable state until the end of 2009, the third-longest serving member of the Bank of England's (BoE) monetary policy committee has claimed.
Kate Barker made her comments as reports came out that the pound was continuing to weaken against ... More
Debt Consolidation - Germany criticises UK government response
The German finance minister has criticised the UK government and some other European Union (EU) states on their response to the ongoing economic downturn.
Peer Steinbruck blasted this month's cut to VAT - as announced recently in the pre-Budget report - along with Gordon Brown's party's ... More
Credit Cards - More Britons going interest free
The number of adults in the UK applying for an interest free credit card increased by more than 15.6 per cent in November, new figures suggest.
According to research by MoneyExpert, the number of ... More
Unsecured Loans - Start saving for Christmas
Britons who choose to save throughout the year for Christmas are likely to find that the festive season is not such a great expense, one sector commentator has claimed.
Michelle Slade, press and public relations officer for Moneyfacts, said it was all a case of people making sure they ... More
Debt Consolidation - Government's priorities 'conflicting'
Financial services advisers have spoken out against the government, claiming that its priorities for the sector are "conflicting and incoherent", it has been reported.
According to the BBC, Michael Coogan, of the Council of Mortgage Lenders, has claimed that this has led to ... More
Unsecured Loans - Economy 'to shrink one per cent'
New research has revealed that the UK economy is likely to shrink by more than one per cent in the fourth quarter.
According to predictions made by the National Institute of Economic and Social Research (NIESR), this suggests that the economy is in for a deeper recession than earlier ... More
Credit Cards - Christmas on credit
It has been revealed that 21 per cent of consumers intend to pay for their Christmas shopping and related expenses with a credit card or another form of credit.
According to research by Abbey, this is... More
Debt Consolidation - Recession 'may be deeper'
The impact of the impending recession on the UK economy may be deeper than originally feared, new data has suggested.
According to the Guardian, the Office for National Statistics revealed that industrial output has fallen at its most rapid rate in nearly six years, while the preceding ... More
Unsecured Loans - Consumers 'reluctant to spend'
Consumers in the UK are both short on money at the moment and reluctant to spend what cash they do have, one sector commentator has claimed.
Richard Dodd, spokesperson for the British Retail Consortium, stated that consumer confidence was now at an all time low because people were worried... More
Remortgage - Re-mortgaging 'should be considered early'
Britons considering a re-mortgage of their property should ensure that they begin thinking about this option early, according to one sector commentator.
Kate Faulkner, managing director of Designs on ... More
Unsecured Loans - Elders 'may be putting health at risk'
Older people in the UK are cutting back on essential items such as food and heating which could potentially be putting their health at risk, one sector commentator has claimed.
Gordon Lishman, Age Concern's director general, said that it was nothing short of a "national scandal"... More
Debt Consolidation - Retail, catering and leisure sectors 'at risk'
The catering, leisure and retail industries are the most at threat from the impending recession, one sector commentator has claimed.
This is because all of them offer services that may be seen as a luxury and therefore unnecessary when money is tight, David Molian, lecturer in the Bettany... More
Unsecured Loans - A time to re-give
Disappointing gifts waiting for Britons under the Christmas tree are increasingly being stockpiled in order to give to friends and family the following year, one sector commentator has claimed.
TV presenter Melissa Porter said on behalf of 3V that some people were now attempting to take ... More
Remortgage - There is a 'real risk of deflation'
The UK is now at a real risk of actual deflation and it was this threat the Bank of England acted on when it reduced interest rates, one sector commentator has claimed.
Last week, the Bank's monetary policy committee slashed the base rate by one percentage point from three per cent to two... More
Unsecured Loans - Britons plan for frugal festivities
Amid the ongoing credit crunch and rising concerns over the impending recession, Britons are taking a cautious approach towards spending this Christmas, one sector commentator has claimed.
Freelance journalist Karen Kay explained that this was a good thing because it was all too easy to ... More
Debt Consolidation - Banks 'holding the economy back'
The UK banking sector is still remaining "very cautious" in its lending which is what is currently holding the economy back, one sector commentator has claimed.
Charles Davis, economist at the Centre for Economic and Business Research, said that yesterday's (December 4th) one ... More
Remortgage - Brown 'to push banks'
The prime minister has pledged that he will push the UK's banking sector into passing on interest rate cuts to the consumer.
Gordon Brown's promise follows yesterday's (December 4th) decision by the Bank of England's monetary policy committee to slash the base rate to two per cent from ... More
Debt Consolidation - Debt worries 'pile on pressure'
Nearly one in three (30 per cent) of adults in the UK have admitted that they are worried about their ability to manage their finances as concerns over the impending recession mount, new research has found.
According to a report by Money Expert, despite the economic downturn, 27 per cent ... More
Debt Consolidation - Banks 'have forgotten they're in business'
Money lenders in the UK have forgotten that they are in business and that it is the customer who comes first, according to one sector commentator.
Bill Barclay, managing director of Galapark Finance, said that finances for small businesses were not always forthcoming and that the fault ... More
Remortgage - Base rate cut to two per cent
The Bank of England has announced today (December 4th) its decision to cut the base rate of interest by one percentage point.
This takes the base rate from three per cent to two per cent - its lowest level since 1951.
In a statement it was revealed that the Bank's monetary policy... More
Unsecured Loans - Banking code 'should be welcomed'
The new banking bill, which was unveiled yesterday (December 3rd) as part of the Queen's speech, is to be welcomed, according to one financial group.
Monetary authorities and the Bank of England will now be able to intervene if a financial services provider gets into severe difficulties ... More
Remortgage - Get shopping savvy at Christmas
It is important that Britons get savvy with their shopping and spending commitments this Christmas, to avoid encountering monetary problems further down the line, one group has claimed.
According to the Citizens Advice Bureau, consumers should not forgo their mortgage or More
Unsecured Loans - Overseas shoppers 'will return'
The UK retail sector and the economy may receive a boost if lower VAT and a weakening pound continue to attract overseas shoppers after Christmas.
Will Holroyd, managing director of WhiteConcierge, said the group would not be surprised to see a number of non-British residents arriving ... More
Debt Consolidation - Consumer confidence plummets
Consumer confidence fell to a four-year low in November according to the latest figures by Nationwide.
The Telegraph reports that the money lender's index fell by six points to 50 last month, in comparison to 83 where it had stood during the same month in 2007.
Factors for this ... More
Unsecured Loans - Queen 'to announce new lending rules'
The Queen is expected to announce new legislation this afternoon (December 3rd) that will see banks fined if they break lending rules, it has been reported.
This could result in the code of practice for banking - which is currently voluntary - becoming legally binding under the new ... More
Remortgage - Britons 'will be ahead'
Recent changes to personal tax allowances announced in the pre-Budget report last week will mean that Britons will be ahead compared to where they stood under the 10p tax regime earlier in the year, one sector commentator has claimed.
John Whiting, chairman of the management of taxes ... More
Debt Consolidation - Christmas over-spending 'can lead to debt'
Britons who overspend at Christmas may be left at best disappointed and at worst in debt, according to one sector commentator.
Financial expert and TV presenter Jasmine Birtles said that the ongoing economic downturn may have left many people with feelings of misery and that during the ... More
Debt Consolidation - One point reduction predicted
The Bank of England is likely to slash the base rate of interest by 100 basis points when its monetary policy committee (MPC) meets this Thursday (December 4th), according to a recent poll.
A snap Reuters survey revealed that 40 of the 62 economists questioned believed the MPC would ... More
Unsecured Loans - Shoppers enjoy VAT cut
Britons setting off to buy their Christmas gifts are today (December 2nd) enjoying the first day of the VAT cut implemented as part of the chancellor of the Exchequer's recent pre-Budget report.
The reduction means that goods will now effectively cost some 2.5 per cent less after Alistair... More
Debt Consolidation - Britons 'looking to rainy day'
People in the UK are now starting to think more about making sure they have got some money set aside for a rainy day, according to one sector commentator.
Hetal Parmar, manager for savings at Alliance & Leicester, said that research by the financial services provider had found that ... More
Debt Consolidation - Mid-income and above 'will lose out'
Following the recent tax cuts announced as part of last week's pre-Budget report by the chancellor of the Exchequer Alistair Darling, it is those with a middle-income or above who are likely to lose out, one sector commentator has claimed.
John Whiting, chairman of the management of taxes... More
Unsecured Loans - US influence 'could have impact on interest rates'
Further cuts to the base rate of interest are expected in the new year, one sector commentator has claimed.
However, Ross Walker, economist at the Royal Bank of Scotland Group, noted that "uncertainty" would remain as actions in the US could have an effect on any decisions by ... More
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