March 2008 - In the News
Debt Consolidation - Shop around for cheaper credit, consumers told
Consumers have been advised that by shopping around for the best deal on a mortgage, loan or credit card, they can make substantial savings.
According to comparison site moneysupermarket.com, by spring cleaning their finances consumers could save as much as £4,109 a year. ... More
New Mortgages - Mortgage 'could be well invested in a university town'
Consumers looking to use their mortgage or loan to buy a house to let could be wise to invest in a university town, according to the property editor of an impartial advice site.
Paul Collins, property editor for BuyAssociation, said that an investment in a property in university town can... More
New Mortgages - Millions wasted by homeowners by taking up mortgage lender's life insurance
Homeowners are losing an estimated £310 billion per year by taking out life insurance with their mortgage provider, a new study has revealed.
Findings from the Post Office have shown that over a third of those completing a mortgage application bought life insurance at the same time.... More
New Mortgages - House prices down for the sixth month in a row, say new figures
House prices in the UK fell for the sixth consecutive month during March according to new research.
Findings from Hometrack's study of the property market revealed that the average price of a property dropped by 0.2 per cent during the month with 29 per cent of the postcode districts ... More
Debt Consolidation - March - House market moves
With the credit crunch continuing into 2008, the market volatility created by the US subprime crisis has sent ripples of 'doom and gloom' through the UK's mortgage market since the start of the year.
Currently many homeowners are struggling to keep up with their mortgage repayments due ... More
New Mortgages - Loyalty does not pay for homeowners
Mortgage lenders are ignoring the old business saying that it is five times more expensive to win a new customer than secure a new one, one financial expert has claimed.
According to moneysupermarket.com, many consumers looking to renew their fixed-rate mortgage with the same lender are ... More
Debt Consolidation - New banking code to be introduced
Under the terms of a new banking code those struggling to cope financially are expected to be entitled to fairer treatment.
The new code stipulates that spenders should contact their bank if they experience financial difficulty in a bid to make sure they work out a practical solution ... More
New Mortgages - Homeowners waste millions by taking out mortgage lender's life cover
Homeowners are wasting an estimated £310 billion per year by taking out life insurance with their mortgage provider, a new study has revealed.
Findings from the Post Office have shown that over a third of those completing a mortgage application bought life insurance at the same time... More
New Mortgages - Hips not helped first-time buyers
Home information packs (Hips) have not helped first-time buyers get their feet on the property ladder, one housing expert has claimed.
According to research from the consumer body Which? there are a number of issues associated with the packs "which really need to be worked on".... More
Debt Consolidation - Impact of credit crunch on property auctions 'has been disastrous'
The effect of the credit crunch upon property auctions has been "disastrous", one housing expert has claimed.
According to the Essential Information Group (EIG), usually the overall sales rate for properties ranges from 70 to 80 per cent but from September of last year it fell ... More
New Mortgages - House prices tipped to fall ''dramatically''
House prices will fall "quite dramatically" over the next two years, first-time buyer solutions site Firstrung has said.
According to the firm's operations director, Paul Holmes, such a fall is inevitable due to the lack of available credit on the market.
"The ... More
New Mortgages - Some building societies 'have best mortgage deals'
Selecting your mortgage from a smaller lender could help save money, according to moneysupermarket.com.
Louise Cuming, head of mortgage services at the website, explained that building societies could offer the best mortgage deal.
However, she warned: "The only trouble with... More
Homeowner Loans - Rises in personal loan interest rates severe, expert claims
Interest rates on small unsecured personal loans have risen due to the effects of the market turmoil created by the credit crunch, one expert has claimed.
Jo Roberts, a director of Needanadviser.com, explained that lenders are increasing rates on personal loans as they are "running ... More
New Mortgages - Nationwide puts mortgage rates up
Nationwide one of the UK's biggest mortgage lenders has put its interest-rates up in the wake of the continuing effects of the credit crunch.
The second biggest lender in the UK, Nationwide increased rates on its tracker mortgages by between 0.51 and 0.57 percentage points, pushing them ... More
New Mortgages - Homeowners consider stepping off the property ladder
Up to one in five homeowners are considering stepping off the property ladder, new research has shown.
According to findings from iammoving.com, 18 per cent of those planning to move are contemplating selling their homes and cashing in on the value of the property before it drops any ... More
New Mortgages - House prices fall for fifth consecutive month
House prices in the UK fell for the fifth consecutive month, according to new figures.
Findings from Nationwide revealed that prices dropped by 0.6 per cent during March and predicted that they could fall a further 4 per cent during 2008 despite previous projection saying they would ... More
New Mortgages - Percentage of interest-only repayment users 'is not extreme'
Despite recent increases, the proportion of people using interest-only repayment options on their mortgage is not extreme, one mortgage adviser has said.
Alexander Hall said that although the option is not generally recommended, it can work for certain consumers depending on their ... More
Debt Consolidation - Consolidation loans 'prevent spiral of debt'
Taking out a debt consolidation loan is becoming an increasingly popular way for young people in the UK to manage their money, it has been claimed.
According to the Daily Mirror, arranging a loan for consolidation purposes can often be a "sensible move" for those who struggle to... More
Unsecured Loans - Personal pricing 'can benefit borrowers'
The recent tightening of lending conditions in the personal loans market is not necessarily bad news for UK consumers, it has been suggested.
While some loan providers may be making it more difficult to borrow large amounts in the current economic climate, the way in which lenders now ... More
Debt Consolidation - 'Lots of children' start work in debt
There are "a lot" of young people starting working life with "a lot" of debt hanging over them, according to Anne Young, savings expert at Scottish Widows.
Ms Young states that this is likely to be a result of the further education they have undertaken and the ... More
New Mortgages - 'Less choice means mortgages are more expensive'
With new research pointing to current ranges of mortgage products available dropping, financial experts are predicting that the smaller amount of choice will lead to increases in prices.
Moneysupermarket.com stated that it is now becoming harder for borrowers as lenders are trying to ... More
New Mortgages - Around 50% of the under-30s 'aim to buy homes'
Up to 50 per cent of young people in the UK view owning a home by the time they reach 30 as a realistic goal, according to new research.
The timing of achieving this milestone is pertinent as the average age of a first-time buyer is 29, a figure which has risen from 28 in the early ... More
Debt Consolidation - Borrowers need to read the small print when taking out a loan
British consumers looking to take out a personal loan need to be aware of the terms and conditions, one financial expert has warned.
According to Needanadivser.com, it is becoming increasingly important for spenders to understand what kind of financial agreement they are entering as ... More
Debt Consolidation - Half a million UK consumers 'spend half a week worrying about debt'
An estimated half a million British consumers spend over 25 hours a week stressing about the state of their finances, according to one financial expert.
Findings from Abbey revealed that over two thirds of respondents worry about the content of their home being subject to ... More
Debt Consolidation - ''Only a matter of time'' before the growth of equity release in the UK
Increasing numbers of consumers are expected to use equity release over the next few years, one financial expert has claimed.
According to the Safe Home Income Plans (SHIP), its use is only a matter of time, given the extent to which consumers have preferred property over pensions as a ... More
New Mortgages - Housing market reaches lowest point for 30 years
Housing market activity is to reach its lowest slump for 30 years, according to research from one property expert.
Data from estate agents LSL Property Services reveals that uncertainty from buyers and sellers combined with the reduced availability of debt is responsible for a drop in ... More
New Mortgages - Number and cost of long-term mortgages on the rise
The number of long-term fixed rate mortgages has risen in the past year as lenders try to cope with demand, one financial expert has claimed.
According to MoneyExpert.com interest rates available on these products have increased as lenders aim to reduce their exposure to high risk. ... More
Homeowner Loans - Retirees 'now owe four times more in loans than ten years ago'
Increasing numbers of consumers are reaching state retirement age owing up to four times as much as their counterparts from ten years ago, a new survey has found.
Findings from the research, by Help the Aged and Barclays, revealed that one in four of those approaching retirement age ... More
New Mortgages - Building societies still in ''a very good position'' to lend
Building society customers should not panic as lenders are still in a good position to offer funds for mortgages, one financial expert has claimed.
According to the Building Societies Association (BSA), action taken last week by certain building societies was not an indication that they ... More
Debt Consolidation - Up to 30% of UK consumers worried about their finances
Up to five out of every six UK consumers do not think they can manage much longer with the mounting pressure surrounding their finances, reveals new research.
Results of a survey conducted by moneysupermarket.com during budget week showed that the British use of loans, credit cards and ... More
New Mortgages - Interest-only approach to paying mortgages is ''perfectly rational''
The increase in the number of consumers choosing to take out interest-only mortgages is not necessarily a bad sign, one financial expert has claimed.
According to the Council of Mortgage Lenders this growing trend could be a "perfectly rational approach" to a mortgage which ... More
New Mortgages - Number of house buyers dropped to lowest number ever
The number of house buyers and first-time buyers on the books of estate agents has decreased during February, according to a housing association.
Figures from the National Association of Estate Agents (NAEA) reveal that the number of homeowners has fallen from an average of 276 ... More
New Mortgages - Sellers ignoring competition in the housing market, say experts
Sellers are ignoring increased competition in the marketplace and the growing difficulties first-time buyers are facing in getting onto the property ladder, one housing expert has claimed.
According to the online estate agent, Rightmove, smart pricing is required by sellers to avoid a ... More
New Mortgages - Half of first-time buyers would move abroad to get on the property ladder
Over half of those consumers looking to get their feet on the property ladder would be prepared to move abroad, according to new research.
Findings from Fair Investment Company showed that the number of consumers willing to move abroad in order to purchase cheaper property has doubled ... More
Debt Consolidation - UK house price crash could be worse than the US
The house price crash in the UK could be worse than that which could affect the US, a new study has predicted.
Findings from Capitol Economics reveal that similarities between consumer spending and house pricing could be a pointer to the future of the UK's housing market.
The ... More
New Mortgages - ''Slower phase'' in the housing market entered
The property market has entered a "slower phase" with gross lending in decline, one housing expert has claimed.
According to figures from the Council of Mortgage Lenders (CML), lending declined to an estimated £24 billion in February, down seven per cent from the ... More
New Mortgages - Homeowners staying where they are during 2008
Prevailing uncertainties in the economy and housing markets mean many homeowners who originally planned on moving during 2008 are staying where they are, one expert has said.
RatedPeople.com said that rather than changing their homes, more people will simply make improvements to their ... More
Remortgage - Sale of Bears Stearns should be ''a wake-up call'' to British consumers
The recent sale of Bears Stearns in the US should be "a wake-up call" to British consumers, one financial expert has claimed.
JPMorgan purchased the investment bank for $2 per share after it experienced financial difficulties due to the effects of the credit crunch. ... More
Unsecured Loans - Larger lenders suffered the most in the wake of the credit crunch
In the wake of the credit crunch many of the larger lenders appear to have suffered the most, according to financial experts.
Research from moneyfacts.co.uk show that from the top 250 mortgages, only 68 are offered by the larger lenders.
This is compared with how they had been ... More
New Mortgages - First time buyers should ''research the market'' when looking for a mortgage
It is important for first-time buyers to shop around when looking for a mortgage, one property expert has claimed.
According to the Council of Mortgage Lenders (CML), buyers should make sure they research the market as part of one of the "obvious things" they should do when ... More
Remortgage - Mortgage borrowers facing difficult time
Over a third of mortgage borrowers have put themselves at the mercy of their lender by making mortgage repayments over three times their annual salary according to new research.
Findings from Moneynet.co.uk show that higher payments and falling options are the becoming the norm with ... More
Homeowner Loans - More consumers aware of the importance of a credit rating
Increasing numbers of consumers are becoming aware of the importance of their credit rating in today's economic climate, one financial expert has claimed.
According to moneysupermarket.com, the effects of the credit crunch mean that banks and building societies have tightened their ... More
New Mortgages - Mortgage increases for those at the close of fixed-rate deal
New figures indicate that homeowners coming to the end of their current fixed-rate deal could see their mortgage payments increase by 35 per cent.
Findings from Mortgage Monitor show that an estimated 340,000 households will come to the end of their five-year deals during 2008 with ... More
Debt Consolidation - Mortgage debt problems on the rise
There has been an increase of 35 per cent in the number of householders seeking help with their mortgage, according to a new survey.
Research from the Citizens Advice Bureau, which surveyed over 300 Citizen's Advice Bureau (CAB) offices, reported that they dealt with 215,000 new debt ... More
Credit Cards - UK consumers are finding it harder to get cards at low-rates
UK consumers are finding it harder to get credit cards with low rates of interest due to the effects of the credit crunch, one financial expert has claimed.
Credit Action stated that credit for consumers is now not as widely available as it was 12 months ago and when credit can be found,... More
Credit Cards - Card donations 'top £1bn'
Consumers donated more than £1 billion to charity using their credit or debit cards in 2007, according to financial services trade body Apacs.
Last week the organisation revealed the average donation hit £44.75 and the number of total donations had increased by 23 per cent on ... More
New Mortgages - Rates and credit crunch combine to cool house prices'
Interest rates and the effects of the global credit crunch are combining to slowdown European house prices, according to the chief executive of the Association of International Property Professionals (AIPP).
Paul Owen's comments follow the Royal Institution of Chartered Surveyors' (Rics)... More
New Mortgages - Islamic finance 'grown beyond mortgages'
The marketplace for Islamic financial services is continuing to grow, according to a media relations manager for Lloyds TSB.
Emile Abu-Shakra states "bread and butter" products such as mortgages and savings accounts are now supplemented by a range of other options, such as ... More
New Mortgages - Merthyr Tydfil leads UK house price growth
A new study has found that Merthyr Tydfil in Wales has recorded the largest house price gains in the UK over the last five years.
Halifax reports that in terms of average price per square metre, properties in Merthyr have increased by 203 per cent, rising from £439 per sq m in 2002 ... More
New Mortgages - Budget ''could have helped first-time buyers''
This week's Budget could have gone further to help those looking to buy a property for the first time, it has been claimed.
Duncan Samuel, managing director of online conveyancy Convex.net, said that stamp duty will continue to place pressure on first-time buyers, particularly for those ... More
Unsecured Loans - Borrowers should keep their loan providers 'in the loop'
An expert has advised people who have taken out student loans to ensure that they keep their provider informed if they change address.
Samatha Owens, head of personal finance at Moneyfacts, said that a lot of people "might be getting lost in the system" if they move around a ... More
New Mortgages - Mortgage products of 25 years are 'too long', say experts
The government need to be more "realistic" when it comes to proposals to develop more long-term flexible options for mortgages, according to financial experts.
Abbey Mortgages said that although more people are choosing five-year fixed-rate deals, as opposed to the previously ... More
Homeowner Loans - Loan rates still on the increase
Interest rates for unsecured personal loans are still on the up, according to new research.
Findings from Moneyfacts.co.uk show that average rates for all loan amounts are now up to 4.6 per cent higher than they were in March 2007.
According to the firm, smaller loans have seen ... More
New Mortgages - Sales of green mortgages remain 'static' following the credit crunch
Following the effects of the economic uncertainty caused by the credit crunch it is unlikely that lenders will begin to offer green mortgage products in the near future, one financial expert has claimed.
According to Moneyfacts, there has been no big change in the amount of lenders ... More
New Mortgages - Budget 'missed opportunity' to help aspiring property owners
Chancellor Alistair Darling's Budget is a "missed opportunity" to help home owners and those aspiring to own property, one financial expert claimed.
The Association of Mortgage Intermediaries (AMI) said that they would have expected the chancellor to address the challenging ... More
New Mortgages - Budget does not do enough to help first-time buyers
The proposals in today's budget from the Chancellor do not do enough to help first-time buyers get their first foot on the property ladder, one financial expert has claimed.
According to Abbey, the government's plans to eliminate stamp duty for those who own less than 80 per cent of a ... More
Credit Cards - Credit card fraud hits £535.2m
Credit and debit card fraud has increased by a quarter with losses reaching £535.2 million in 2007, according to new figures.
Findings from the Association of Payment Clearing Services (Apacs) revealed that fraud levels for last year rose to a record high for the first time in three ... More
New Mortgages - Hips introduction 'failed to improve housing market'
The introduction of Home improvement packs (Hips) has failed to enhance the housing market since they were introduced three months ago, one financial expert has claimed.
According to estates agent Hampton International, the packs have had the opposite effect of speeding up the process of... More
New Mortgages - Number of mortgage loans approved drops to nine year low
The number of loans approved for mortgages has dropped to a nine year low according to new figures.
Findings from the Council of Mortgage Lenders (CML) revealed that the number of loans for house purchase continued to decline in January totalling 50,300.
This represented a 19 ... More
New Mortgages - Fixed-rate mortgages growing in popularity
Fixed-rate mortgages are still the preferred option of borrowers despite the expected cuts in interest rates, according to new research.
A report from Abbey has revealed that 35 per cent of people in the UK would opt for a fixed-rate mortgage if they were remortgaging tomorrow. ... More
Credit Cards - Credit card holders urged to 'be careful' when abroad
Britons travelling overseas should make sure they are cautious when spending their money, according to Apacs, the UK's payments association.
Mark Bowerman, a spokesperson for Apacs, advised consumers that it may be best to pay with a credit card rather than a debit card while abroad so ... More
New Mortgages - Government urge to help home buyers
The UK government should be doing more to help people get on the property ladder, Moneyfacts.co.uk has claimed.
Ahead of the upcoming Budget, the financial information provider has called on the government to clarify issues within the mortgage market and address existing concerns such as ... More
New Mortgages - Lack of finance impacts upon housing market
The tightening of the mortgage market has been affecting house prices, as buyers struggle to find finance to purchase a home, new figures from the Royal Institution of Chartered Surveyors (Rics) suggest.
Some 64.1 per cent more chartered surveyors reported a fall rather than a rise in ... More
Debt Consolidation - Consumer debt hits 3-year high
Consumer borrowing in the UK has reached a three-year high, according to figures from unbiased.co.uk.
Data published by the website, which is operated by Independent Financial Advisor Promotion - states that the level of debt generated by consumers hit £76.7 billion during the ... More
New Mortgages - Stamp duty hitting the south
New research has found that the average first-time buyer is required to pay stamp duty in almost all locations in the south of England.
On top of their mortgage costs, first-time buyers paid stamp duty in 99 per cent of local authorities in the south in 2007, compared to 42 per cent in ... More
New Mortgages - Optimistic teens expect glowing financial futures
Today's teenagers have high expectations of their financial futures, in spite of the prevailing economic gloom.
A new survey by Natwest's MoneySense Panel has found that today's 11 to 19-year-olds expect to have high salaries, low debts and impressive levels of purchasing power. ... More
New Mortgages - BoE to wait for a ''settled picture''
The Bank of England (BoE) will wait until it has a clear view of the wider economy before choosing to raise or lower the base rate of interest, it has been claimed.
Newcastle Building Society suggested that the BoE's monetary policy committee (MPC) had the "difficult task" of ... More
New Mortgages - Mortgage rates set to rise
Although interest rates are expected to fall over the coming months, one expert has suggested that mortgage rates are likely to continue rising.
Melanie Bien, director of Savills Private Finance, said that despite the base rate of interest being placed on hold, Abbey has announced that ... More
Debt Consolidation - 'Many saddled with debt'
New research has revealed that people from Yorkshire aged 35 or younger are spending a significant amount of their income on servicing credit card debts.
Skipton Building Society found that after paying their rent or mortgage, this groups' largest outgoing is on credit card bills and loan... More
Remortgage - Variable-rate mortgages 'may have their downside'
Choosing a variable-rate mortgage could have potential risks following yesterday's Bank of England decision to keep the base rate of interest at 5.25 per cent, it has been claimed.
Mark Blackwell, director of intermediary sales at Alliance & Leicester, said that borrowers ought to ... More
Remortgage - BoE freezes base rate
The Bank of England's (BoE's) monetary policy committee has chosen to maintain the base rate of interest at its present level of 5.25 per cent.
Responding to the announcement, Cobalt Capital stated that it is "a shame" that the BoE did not reduce the rate ... More
Remortgage - CML highlights mortgage changes
Ahead of the monetary policy's decision on interest rates on March 6th, CML Media has warned that even a 0.25 per cent cut may ease concerns over mortgage affordability.
It noted that lenders are adjusting their products and rates in response to market conditions and an interest rate cut ... More
New Mortgages - BoE unlikely to cut rates, says expert
A further rate cut on the base interest rate is an unlikely decision for the monetary policy committee (MPC), according to Scottish Widows Investment Partnership.
Spokesperson Sebastian Mackay said while the lender is certain intrest rates would come down by 1.25 per cent over the next 18... More
New Mortgages - Fixed-rates proving popular
More than half of mortgages taken out in February were fixed-rate products, according to new figures.
Some 52 per cent opted for this type of product last month, mortgage broker John Charcol reports.
This is against a "more recent norm" of around 33 per cent, technical ... More
Homeowner Loans - Secured and unsecured loan rates falling into line
The average rates for secured loans are falling in line with the rates on offer for unsecured personal loans, according to new research.
Findings from MoneyExpert show that the lowest rate available for a secured loan is currently 5.9 per cent.
This rate is 2.5 percentage ... More
New Mortgages - European house price boom comes to an end
The value of property across Europe has begun to fall, according to research from housing experts.
According to the Royal Institution of Chartered Surveyors (RICS), most housing markets in Europe slowed sharply or declined during the second half of 2007.
The report cited the ... More
New Mortgages - One in five concerned about meeting mortgage payments
Up to one in five homeowners admit to being worried about how they will meet their mortgage payments over the course of the next 12 months, according to new research.
Findings from the Financial Services Authority (FSA) revealed that a quarter of respondents said they had no plans to ... More
New Mortgages - BoE 'needs to act fast' to restore confidence to the housing market
The Bank of England (BoE) 'needs to act fast' in cutting interest rates to help restore confidence to the housing market, one expert has said.
Peter Bolton King, chief executive with the National Association of Estate Agents (NAEA), said that consumers' finances are being squeezed as a ... More
New Mortgages - FSA launch campaign to help homeowners meet mortgage payments
The Financial Services Authority (FSA) has launched a campaign to assist homeowners in choosing the right mortgage for them.
According to the body, the focus of the initiative is the 1.4 million mortgage holders whose fixed-rate or discount deals are coming to an end this year. ... More
Credit Cards - Graduates 'shouldn't have any trouble getting a loan'
Despite tighter lending conditions created by the global credit crunch, graduates should not have any trouble in getting a loan, one financial expert has claimed.
Moneyfacts said although graduates may leave university in debt, lenders will judge them on different criteria to how they ... More
New Mortgages - First-time buyers put off plans to make purchases
Fears over house prices and the state of the economy have ensured that nearly two thirds of first-time buyers have delayed their steps onto the property ladder, one financial expert has claimed.
Findings from Abbey showed that at the start of 2008 up to 14 per cent of non-homeowners were... More
Debt Consolidation - Up to 3.4 million adults own five or more credit cards, say experts
More than 3.2 million adults own five or more credit cards, despite mounting concerns about debt problems, reveals new research.
Findings from MoneyExpert.com showed that 28 per cent of people applied for more plastic last year with 21 per cent looking for one card while another seven ... More
Homeowner Loans - A new generation of consumers to be created by tightening of lending
The reduction in the number of high-value loans available to consumers is to create a new generation of savers, one financial expert has claimed.
John Charcol said that many providers have reduced their maximum loan-to-value (LTV) from 100 per cent due to the adverse economic conditions... More
Debt Consolidation - Brits spend two years of their lives worrying about debt
The average British consumer will spend two years of their lives, or the equivalent of 16,848 hours worrying about debt, according to new research.
Findings from the Co-operative Bank reveal that one in two adults admitted to being 'concerned or deeply concerned' about their increasing ... More
Remortgage - Remortgaging on the up
The number of remortgage approvals has risen while the number of mortgages being approved for new homes has also increased reveal new figures.
Findings from the Bank of England show that 74,000 loans were granted for new house purchases in January compared with 72,000 in the previous ... More
New Mortgages - 100% plus mortgages were 'very good' for first-time buyers
Despite being recently withdrawn from the market, 100 per cent mortgages were "very good" for first-time buyers, one financial expert has claimed.
Firstrung said that the 100 per cent plus mortgages was a "niche product" which, in most instances, was a 95 per cent ... More
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