February 2008 - In the News

Debt Consolidation - February 2008 ? Retail hangover still aches from the festive period

With consumers now entering the third month of 2008, it is still evident that the effects of the retail hangover from the Christmas period have yet to stop aching.

This financial headache is raging against the gloomy economic backdrop created by the financial tightening of belts brought ... More

New Mortgages - Decline of 100% mortgages 'another door closed' for first-time buyers

The decline in availability of 100 per cent plus mortgages is yet "another door" closing on first-time buyers attempting to get their first foot on the property ladder, one financial expert has claimed.

Moneysupermarket.com said the product, which offered borrowers more than ... More

Unsecured Loans - Cheap credit era come to an end, say FSA

The financial era of cheap credit has come to an end, meaning securing a loan could become more expensive for consumers, one monetary body has claimed.

According to the Financial Service Authority (FSA), the effects of the global credit-crunch will force banks to change the way they do ... More

New Mortgages - Fixed-rate mortgages offer 'peace of mind'

Fixed-rate mortgages are attractive to those homeowners who are at the edge of their affordability in owning a house, one mortgage expert has claimed.

Moneysupermarket.com said that these products, where monthly repayments are fixed when the mortgage is taken out, and do not change as ... More

New Mortgages - Couples more able to get on the property ladder

Couples are more financially able to afford to get a foot on the bottom rung of the property ladder, one lending expert has claimed.

According to Fool.co.uk, consumers who are together should find it easier to overcome the financial obstacles in the way of purchasing property as, despite... More

Remortgage - Tracker mortgages are the 'best bet' for consumers

Tracker mortgages are the "best bet" for those consumers looking to take advantage of falling interest rates this year, according to finance experts.

Moneysupermarket.com said that while rates have been going down, increasing numbers of consumers have been reverting to tracker ... More

Remortgage - Homeowners believe house value increased despite economic volatility

Despite declining levels of consumer confidence, up to 40 per cent of Brits believe the value of their homes has increased during the last six months, new research has revealed.

According to findings from CreditExpert, almost half of homeowners in the south believe this is the case while... More

New Mortgages - Nationwide increases deposit

Nationwide, the second biggest provider of mortgages in the UK, has increased the deposit homeowners need to have to qualify for the company's best rates.

According to the group, the maximum loan-to-value (LTV) ratio consumers need to qualify for its best deals have fallen from 90 per ... More

New Mortgages - Increasing opportunities to 'refinance' in current housing climate

The current housing climate offers increasing opportunities for those who already own property to refinance, according to financial experts.

The Royal Institution of Chartered Surveyors (Rics) said that first-time buyers may be struggling to finance getting their first foot on the ... More

New Mortgages - Positive future forecast for life-time mortgage sector

Broker confidence in the life-time mortgage sector is soaring, according to new research from mortgage experts.

Findings from Mortgage Express show that up to 81 per cent of brokers, who have yet to advise on life-time mortgages, are planning on doing so in the next year or in the ... More

New Mortgages - Buy-to-let loans up in 2007

The number of loans made available to buy-to-let landlords during 2007 increased, according to recent figures.

Findings from the Council of Mortgage Lenders (CML) showed that there were 179,100 loans (including remortgages) during the second half of the year, a figure up from 171,800 ... More

Remortgage - Homeowners need to set aside 20% of income to pay stamp duty, say experts

The average home buyer in nearly one in three of local authorities needs to set aside over 20 per cent of their average income to pay the stamp duty bill associated with buying a new home, according to mortgage experts.

Research from Halifax reveals that in 2002 the average stamp duty ... More

New Mortgages - Mortgage approvals on the rise

The number of mortgages being approved by the main high street banks has increased, according to new statistics.

Figures from the British Bankers' Association (BBA) show that approvals for remortgages increased from 67,535 in December to 79,016 last month - a 39 per cent rise on the ... More

New Mortgages - Homeowners could land in debt in current climate

Concern that homeowners with a 100 per cent mortgage could land in debt is growing after a number of providers have stopped offering deals where consumers can borrow more than the cost of their home claims a mortgage expert.

Savills Private Finance said that banks are withdrawing home ... More

Debt Consolidation - Over 70% of motorists putting their lives at risk

Up to 71 per cent of drivers are putting their lives at risk by delaying a trip to a garage despite being aware of faults with their vehicles, claims new research.

Findings from esure have revealed that one in three motorists admit to ignoring problems with their cars to avoid paying out... More

New Mortgages - Buy-to-let 'does not limit property sector'

The rise of the buy-to-let sector has not prevented first-time buyers from getting onto the property ladder in the UK, an industry figure has stated.

Malcolm Harrison, a spokesperson for the Association of Residential Letting Agents, described claims that the number of new buyers taking ... More

New Mortgages - ''Sense of optimism'' detected in housing market

The UK property market has started the new year in positive fashion, according to an industry body.

A new report from the National Association of Estate Agents (NAEA) describes "a new sense of optimism from consumers" in the early stages of 2008, with the number of buyers on ... More

Unsecured Loans - Car upgrade spending revealed

Motorists would most like to upgrade their in-car sound systems if they had the funds to do so, according to a new study.

Nine per cent of drivers would most like to give a boost to their car stereos, while eight per cent would like to make improvements to their engines and seven per cent... More

New Mortgages - 'Risky' mortgages disappearing from market

Many lenders are no longer offering 125 per cent mortgages, it has been revealed.

According to Denise Harvey of moneyfacts.co.uk, just two providers now offer the home loans to consumers.

She cited expectations of a property slowdown as a result of the global credit crunch as the... More

Remortgage - Property market ''in the doldrums''

The ongoing slowdown in the UK housing market has seen remortgaging emerge as the dominant sector in home loan lending, an expert has stated.

Citing recent figures from the Council of Mortgage Lenders (CML), principal banking consultant at financial research company Defaqto David Black ... More

Unsecured Loans - Bridging loans 'more important than ever'

The need for bridging loans has increased in recent months as the UK economy continues to adjust to tighter credit conditions, a financial expert has stated.

Lee Tillcock, editor of Business Moneyfacts, explained that demand for bridging loans will typically rise during periods of ... More

New Mortgages - Brits 'prefer fixed-rate mortgages'

The majority of UK people would opt for fixed-rate products when looking for a new mortgage, a new survey has suggested.

According to findings from Fairinvestment.co.uk, 57 per cent of Britons would choose a fixed-rate mortgage over other types of home loan, with 23 per cent preferring a ... More

Credit Cards - ''Generational'' use of credit cards replacing cheques

The ongoing decline in the use of cheque payments has been led by consumers and "generational" differences, according to an industry body.

Payments association Apacs said that the use of cheques has fallen as the volume of credit card and debit card payments increases, with many... More

Remortgage - Brits 'confused about remortgaging'

Many UK homeowners struggle when it comes to remortgaging their property, according to new research.

The findings from Abbey show that almost one-third of British people would not know which product to choose if forced to remortgage their home tomorrow, as the current economic uncertainty... More

Homeowner Loans - Demand for secured loans 'increasing'

Taking out a secured loan is becoming an increasingly popular way for UK consumers to generate finance, new research has indicated.

According to MoneyExpert.com, applications for secured methods of borrowing such as homeowner loans increased by 85 per cent between October 2007 and January... More

Debt Consolidation - Debt worries 'growing in the UK'

An increasing number of British people are feeling stressed out about debt, a new report has claimed.

MoneyExpert.com states that one in three UK consumers are concerned about their current levels of borrowing, with spending hangovers from the Christmas period making personal finances ... More

Remortgage - CML reports rise in lending for January

The UK's level of gross mortgage lending increased during the first month of 2008, it has emerged.

According to the latest figures from the Council of Mortgage Lenders (CML), gross lending reached an estimated £26.5 billion in January, just below the corresponding month last year, ... More

New Mortgages - Rate cuts 'will help first-time buyers'

The Bank of England's recent interest rate cuts will ease affordability pressures for first-time buyers in the coming months, an industry group has claimed.

According to an article in News and Views, the monthly publication from the Council of Mortgage Lenders (CML), the ability of new UK... More

Unsecured Loans - Couples 'must communicate about finances'

A financial expert has highlighted the importance of communication between couples when it comes to money.

Mike Kalen, president and chief executive officer of financial services provider The Hartford Life Limited, said that people who do not make money decisions in collaboration with ... More

New Mortgages - Property market 'still slowing'

The slowdown in the British housing sector is continuing despite the Bank of England's recent interest rate cuts, new research has indicated.

According to Moneyextra.com, average UK property prices fell by 1.57 per cent in January this year, while the size of the average mortgage sought ... More

Remortgage - N Rock mortgage holders told not to worry

Homeowners with mortgage deals from Northern Rock have been advised not to panic about the company's impending nationalisation.

Rachel Lacey, editor of financial advice website Moneywise.co.uk, said that it is shareholders rather than borrowers who are likely to be affected by the ... More

Credit Cards - Consumers warned against multiple credit cards

British consumers have been advised against taking out several credit cards to fund their spending habits.

Spokesperson for the Consumer Credit Counselling Service James Ketchell said that using multiple credit cards can easily become "confusing" and often means that people feel... More

Credit Cards - Brits 'reducing credit card spending'

The UK's credit card holders have significantly reduced their spending over the last three years, according to new research.

Moneyextra.com has stated that total credit card expenditure in January this year was 25 per cent down on the corresponding month last year and 36 per cent lower ... More

Unsecured Loans - Drivers 'must check insurance for Europe'

Britons have been advised to refer to their motor insurance policies before taking a car to Europe.

According to the AA, many UK people assume that they will be automatically covered to drive in European Union (EU) countries on a standard car insurance policy, when the reality may be far ... More

Credit Cards - Card holders 'struggling with balance transfer deals'

Many credit card holders are finding it increasingly difficult to access the best deals on balance transfers, according to a new report.

Financial advice website Moneyfacts.co.uk has said that although the length of balance transfer offers and zero per cent interest deals has been ... More

New Mortgages - UK property prices 'still falling'

House prices in the UK continued to drop in January, according to a new report.

The latest housing market survey from the Royal Institution of Chartered Surveyors (Rics) states that overall property prices fell for the sixth successive month in January, although a small rise was detected ... More

Credit Cards - Credit card payments 'unfair', says survey

The order of payments used by credit card providers is resulting in a poor deal for the majority of British consumers, a new report has claimed.

According to Moneysupermarket.com, most card companies allocate payments to the cheapest debts first, meaning that customers continue to run up ... More

Unsecured Loans - Flooding 'will lead to insurance hikes'

People who live in properties situated on floodplains will soon face major increases in the cost of their home insurance, it has been claimed.

Richard Mason, director of insurance at Moneysupermarket.com, said that the UK's recent flood problems are likely to cause a "hefty ... More

Unsecured Loans - Scots named most romantic people in UK

People in Scotland were the most likely to take their partner away on a romantic break this Valentine's Day, new research has revealed.

According to a survey of romantic habits around the UK by American Express Insurance Services, 36 per cent of Scots said they were planning a special ... More

New Mortgages - Scottish property prices 'starting to fall'

People considering property investment in Scotland may be interested to learn that price increases may have levelled, according to Lloyds TSB Scotland.

In the three months until the end of January, the average domestic property in the country fell by 1.6 per cent - the first fall in seven... More

Unsecured Loans - Consumers receive identity fraud warning

British consumers have been urged to stay vigilant as reported incidences of identity fraud continue to rise in the country.

Citing data from the home office, Direct Line Home Insurance stated that identity fraud issues currently cost the UK economy £1.7 billion each year, with the ... More

Unsecured Loans - Car buyer figures 'plummeting'

The number of British people planning to buy a car has reached its lowest level in two years, a new survey has stated.

According to the AA, planned car spending has also fallen by an average of £976 in the last six months, as consumers tighten their belts in the face of other ... More

New Mortgages - Property market showing signs of recovery?

The UK housing market is beginning to regain momentum after its recent slowdown, according to a new report.

In what the National Association of Estate Agents (NAEA) describes as a "reassuring upward trend", the number of homebuyers increased by 11 per cent on the previous month ... More

Unsecured Loans - Brits 'hide spending from partners'

A large number of Britons keep financial secrets from their partners, new research has claimed.

With loved-up couples across the country preparing to spend a romantic evening together for Valentine's Day, the survey from Moneysupermarket.com states that 27 per cent of UK people spend ... More

New Mortgages - Long-term fixed rates 'could be popular'

Mortgage products that fix interest rates for a long period of time could be of benefit to many British homeowners, an expert has stated.

A spokesperson for the Council of Mortgage Lenders said that mortgage deals such as the 25-year fixed-rate products being promoted by the government ... More

Unsecured Loans - Cost of property weather damage revealed

The cost of repairing damage caused by high winds last year was an estimated £4.5 billion, with 1.5 million roofs damaged over the past 12 months.

New figures from Halifax Home Insurance reveal that 200 million tiles have been replaced in the past year alone, with water damage ... More

New Mortgages - Overseas homebuyers 'need cash deposit'

First-time buyers hoping to take out a mortgage on an overseas property will usually need a large cash deposit, an expert has stated.

Property editor for BuyAssociation Paul Collins said that it is "quite possible" for new British homebuyers to get a mortgage abroad, although ... More

Unsecured Loans - Drivers 'must check policies for Europe'

British motorists have been advised to check the small print on their insurance policy before taking their car into Europe.

While standard motor insurance policies will cover holders for driving in the European Union, the precise extent of cover is likely to change, the Association of ... More

Unsecured Loans - Brits 'prefer work to romance'

Many UK employees would rather spend extra hours in the office than quality time with their loved one on Valentine's Day, a new survey has suggested.

According to Lloyds TSB, 71 per cent of British workers would stay late at work to deal with an urgent inquiry on Valentine's Day, even if ... More

Unsecured Loans - Motorists 'wasting money on car finance'

Many British car buyers are throwing away cash on forecourt finance deals, a new survey has indicated.

According to findings from uSwitch.com, the nation's motorists could waste a collective £174 million next month if they sign up to the car finance provided by their dealer instead ... More

Unsecured Loans - Valentine's Day spending 'set to increase'

British people will spend more than ever on Valentine's Day gifts and cards this year, according to new research.

A survey from Alliance & Leicester states that Brits will this week collectively shell out more than £1 billion on romantic presents for their valentine, despite the ... More

Unsecured Loans - Brits 'confused by Valentine's gifts'

The majority of people in the UK are mistaken about what their partner really wants for Valentine's Day, new research has indicated.

Findings from a survey by PayPal show that a surprise weekend away or romantic dinner are the presents which most people would like to receive this Thursday... More

Unsecured Loans - Car insurance costs 'on the rise'

Insurance is getting more expensive for the UK's motorists, according to a new survey.

Research from Moneysupermarket.com shows that car insurance premiums increased by an average of 4.5 per cent during the second half of 2007, with the typical premium priced at £303 by the end of ... More

New Mortgages - Housing affordability 'should improve in 2008'

The Bank of England's recent interest rates reductions will ease affordability difficulties for UK mortgage holders as the year goes on, an industry body has stated.

With the Bank's monetary policy committee (MPC) cutting the cost of borrowing twice since December, the Council of Mortgage... More

Credit Cards - Survey reveals cost of romance

New research has revealed that the average British male credit card holder spent £82 on eating out in February 2007.

This was not the only Valentine's Day expense for romantic men, the survey from Halifax Credit Cards discovered, with an average of £44 also spent on flowers ... More

Credit Cards - Card switching 'on the increase'

A growing number of British consumers are swapping credit card deals in a bid to exert more control over their finances, new research has indicated.

The survey from MoneyExpert.co.uk states that 5.9 million card holders have switched their accounts in the last six months, representing 13 ... More

Remortgage - Home repossessions 'will rise in 2008'

Figures for house repossessions in the UK will increase as the year goes on, an industry body has stated.

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors (Rics), said that repossessions will rise as a result of the particularly "challenging ... More

New Mortgages - 'Further rate cuts needed'

Additional interest reductions will be required to significantly improve conditions for the nation's homeowners and consumers, it has been claimed.

The Royal Institution of Chartered Surveyors stated that the rate cut made by the Bank of England in December has had "little impact on ... More

Unsecured Loans - Pet owners 'must think about insurance'

An industry expert has urged British pet owners to consider taking out insurance for their animals.

Jenny Davies, media and PR officer at veterinary employment group PDSA, said that pet insurance can provide people with "peace of mind" and ensures that any unexpected fees for ... More

New Mortgages - Mortgage borrowers 'not struggling'

The UK's homeowners have been less affected by the credit crunch than some market analysts had expected, it has been claimed.

Chairman of the Intermediary Mortgage Lenders Association Godfrey Blight said that "across the board credit quality remains good" among British mortgage ... More

Unsecured Loans - Home insurance ''critical''

A home insurance policy is the second most important insurance product for consumers after motor cover, according to an expert.

Graeme Trudgill, technical and corporate affairs executive at the British Insurance Brokers' Association, said that home insurance is "absolutely ... More

Unsecured Loans - January 2008 - Consumers and the credit crunch

Now that the first month of 2008 has drawn to a close, the headlines remain dominated by tales of woe from businesses struggling to maintain their operations amid the ongoing global credit squeeze.

British pub chain Mitchells & Butlers recently announced losses of £274 million as... More

Remortgage - Homeowners 'still want fixed-rate mortgages'

Fixed-rate mortgages are still in vogue with homeowners, one financial services provider has claimed.

New research from Abbey Mortgages shows that, if compelled to renew their mortgage tomorrow, 10.3 million Britons would opt for a fixed rate, compared to 2.8 million who would choose a ... More

Credit Cards - Romantic holidaymakers 'waste money on card charges'

Couples celebrating Valentine's Day abroad be losing more than their hearts, one building society warns.

Britons on romantic breaks lost more than £27 million due to credit card foreign usage fees last February, points out Nationwide.

The financial services provider notes ... More

New Mortgages - Rate cut 'will boost property sector'

The base rate cut implemented by the Bank of England this week should inject a welcome boost into the property market, one expert claims.

Peter Bolton King, chief executive at the National Association of Estate Agents, comments that the 0.25 per cent reduction, which took the cost of ... More

Remortgage - Bank cuts cost of borrowing

Many mortgage borrowers are likely to be pleased by the Bank of England's decision to reduce interest rates from 5.5 per cent to 5.25 per cent this afternoon.

The Bank's monetary policy committee made the cut, as expected, in order to stay on track for the government's inflation target of... More

Credit Cards - Survey reveals fall in credit card spending

Consumers cut back on credit card spending in the run-up to Christmas and preferred to use debit cards to make festive purchases, according to new figures from UK payments association Apacs.

The data shows that in December 2007 some £11.3 billion was spent on credit cards, compared ... More

New Mortgages - Rate reduction 'won't have immediate impact'

Borrowers may need to be patient to see the full effect of the Bank of England's latest interest rate cut, a financial commentator has stated.

Chief executive of MoneyExpert.com Sean Gardner said that consumers "shouldn't expect an immediate impact" from the Bank's decision to ... More

Credit Cards - Consumers given ''simple steps'' to combat card fraud

Credit card holders can avoid becoming victims of fraud by taking a few simple measures, it has been claimed.

Danny Harrison, a security expert at card protection firm CPP, said that consumers should be vigilant when using the plastic on the high street and online.

By taking ... More

Unsecured Loans - Aston Martin named most popular ''dream car''

Britons who had £100,000 to spend on a new car would be most likely to choose an Aston Martin, it has emerged.

Research by insurance company swiftcover.com suggested that people taking out a substantial personal loan for a car purchase would be most likely to choose British models ... More

Unsecured Loans - Romantic Brits given Valentine's insurance warning

With Britons set to spend around £1.32 billion on Valentine's Day gifts this month, many should consider insurance if they are purchasing a highly-valued present for their loved one, it has been suggested.

The average wedding ring coasts about £1,055 and some £2.58 billion... More

Unsecured Loans - Brits 'take out more loans in January'

Twice as many Britons are likely to take out an unsecured personal loan in January compared to other months of the year, it has emerged.

Research by Halifax found that people aged between 20 and 29 years were most likely to take out an unsecured personal loan for debt consolidation ... More

Credit Cards - Holidaymakers warned over ski trip credit cards

Consumers could be paying more for credit transactions on their ski holiday than they would through taking out a personal loan, it has been suggested.

Research by Nationwide has revealed that holidaymakers wasted more than £34,000 at four popular European ski resorts during last ... More

Unsecured Loans - Parents 'need more financial knowledge'

Many British children are unsure of their financial options because their parents lack an understanding of money issues, an expert has claimed.

Editor of Moneywise magazine Rachel Lacey said that UK adults "have a responsibility to educate their children" about personal finance ... More

New Mortgages - January property prices 'unchanged'

House prices remained unchanged in January, with further predictions of a flattened market for the rest of 2008, according to the Halifax House Price Index.

The figures also showed that house prices were one per cent lower in the three months leading to January from the previous ... More

Remortgage - Survey reveals equity of UK homeowners

House price inflation has resulted in £1.96 trillion of property equity in the UK, according to a survey by GE Money.

The research showed that 26 per cent of homes are owned outright but even those people with mortgages have still built up £582 billion of equity in their ... More

Unsecured Loans - Brits 'planning to propose in 2008'

Research has shown that British romantics are planning to spend £1.8 billion on proposing marriage in 2008, according to research from cahoot, reported by Abbey.

It is believed that 1.8 million people will pop the question this year at an average cost of £1,218, which could mean... More

Remortgage - Female movers 'leave money to men'

British men often take sole responsibility for money matters when moving house with their partner, according to new findings.

The study by Halifax Estate Agents discovered that 48 per cent of male movers will oversee the financial aspects of a property move, such as the mortgage and ... More

Unsecured Loans - Brits 'paying too much for financial services'

Many UK consumers are wasting money on unsuitable and uncompetitive financial products, a new study has claimed.

According to MoneyExpert.com, the average British household could make annual savings of up to £547 by switching their "five financial basics" - personal loans, ... More

New Mortgages - Firstborn children 'more likely to get deposit money'

British parents are more likely to give their firstborn child financial help in getting onto the property ladder than younger offspring, new research has indicated.

According to findings from Abbey, 17 per cent of firstborn children receive money towards their first property, compared ... More

Unsecured Loans - Personal loans 'best option' for debt consolidation

A financial expert has advised people looking to consolidate their debts to do so using an unsecured personal loan.

Rachel Lacey, editor of personal finance magazine Moneywise, said that unsecured loans can be "great for consolidating other debts", but warned consumers against ... More

Unsecured Loans - Loan users 'need to think about repayments'

People who take out a loan or a mortgage need to consider how they would make their repayments if they were to become unwell or lose their jobs, the Association of British Insurers (ABI) has said.

According to the organisation, there are currently some 2.4 million people in Britain unable... More

New Mortgages - Mortgage holders 'befriended' by tenants

More than one in five tenants (21 per cent) spend time chatting to their landlord when they phone or visit, according to the latest research from Alliance & Leicester.

The Alliance & Leicester Mortgages' Landlord Index also revealed that 18 per cent of tenants would happily send a... More

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