April 2008 - In the News
Debt Consolidation - April - Payday loans
Payday lending is a method of borrowing common in the US which is increasingly being used by loan companies in the UK.
Due to the ease of access and the speed with which loans are provided to cash-strapped consumers "payday lending is the fastest growing UK consumer finance ... More
New Mortgages - Buy-to-let mortgage market 'should continue to perform well in 2008'
The buy-to-let mortgage market should continue to perform well during the rest of this year as the key factors to drive the market forward are still in place, one financial expert has claimed.
According to the Business Mortgage Company, up to 90 per cent of loan-to-value (LTV) products ... More
New Mortgages - CML urges white paper on mortgages to be put back
The Council of Mortgage Lenders has urged the European Commission to halt new proposals on the integration of the mortgage markets within the EU.
According to the body, the recommendations in the paper, which was published back in December of last year, will now be out-of-date due to the... More
New Mortgages - Abbey and Nationwide 'tighten the noose' on mortgages
Abbey and Nationwide financial providers have both announced changes to their mortgage offers which will 'tighten the noose' on the finances of consumers, one financial expert has warned.
The maximum amount to be lent to borrowers on an interest-only basis is to be reduced by Abbey with ... More
Debt Consolidation - UK house prices fall for the seventh consecutive month
House prices in England and Wales fell by 0.6 per cent during April with this being the seventh consecutive monthly fall, new research has shown.
According to figures from Hometrack, the average value of a property is now at £173,100.
Due to this latest monthly decline in ... More
New Mortgages - Homeowners could be entitled to a 'mortgage holiday'
Homeowners who are feeling the effects of the credit crunch on their finances could be entitled to a break from their monthly payments, one financial expert has said.
According to MoneyExpert.com, mortgage holders should check the terms and conditions of their policy as 58 per cent of ... More
Debt Consolidation - Repossessions to reach 33,400 in 2008
Due to the effects of the credit crunch the number of repossessions of homes in the UK could be as many as 33,400 during 2008, a financial expert has predicted.
A study from the Centre for Economics and Business Research (CEBR) has shown that the number of people losing their homes could... More
New Mortgages - Property 'best before' 2004
Homeowners who bought their property after April 2004 are facing a capital loss if predictions of a 20 per cent fall in house prices come true, one financial expert has predicted.
Fool.co.uk, which predicted the 20 per cent drop, said that this fall would bring the average house price ... More
New Mortgages - New buyers turning to their family for financial support
Many first-time buyers are being forced to turn to their families for help raising the funds to pay for a deposit, a housing association has claimed.
Following the withdrawal of all major mortgage lenders from the 100 per cent market, the Council of Mortgage Lenders (CML) said that this ... More
New Mortgages - 'Housing market could be saved by flexible tenure'
A housing expert has called for more flexible tenure schemes to be made available to help more people get a foot on the property ladder.
The Chartered Institute of Housing (CIH) said that introducing schemes would provide potential homeowners with more flexibility.
Flexible ... More
New Mortgages - First-time buyers need to 'think before buying'
First-time buyers looking to put their first step onto the property ladder need to consider the future of the market before buying, one housing expert has advised.
Alexander Hall said due to the current economic turmoil, which has had as significant knock on effect upon the market, ... More
New Mortgages - 'Bleak consumer view' enhanced by end of fixed-rate mortgage deals
The end of fixed-rate mortgage deals will mean millions of consumers could face increases in their mortgage repayments, one finance expert has said.
According to the Alliance Trust, low real disposable income growth and high council taxes are already putting strain upon household ... More
New Mortgages - Guy Ritchie says 'natives' being left behind by housing market
Madonna's husband and film director Guy Ritchie has complained that British 'natives' are being priced out of the housing market by new money from abroad.
He said that it is now almost impossible to purchase property in central London without possessing ten million pounds. ... More
New Mortgages - Brits afraid of entering the property market
Investors in buy-to-let property are experiencing a rise in demand as potential homeowners are afraid to buy in the current market conditions, one property expert has claimed.
According to new figures from Paragon, up to a third of landlords believe that demand for rented property is ... More
Debt Consolidation - Children worried about the state of the housing market
Children as young as 11 years old are worried about the state of the housing market and falling into debt, according to new research.
In a study of 11 to 15 year olds by Abbey, up to nine per cent of those questioned said they were concerned about not being able to afford a house in the ... More
New Mortgages - Consumers still willing to buy and sell property
Consumers are still willing to enter the property market to sell and buy but first-time buyers have adopted a more cautious approach, one housing expert has claimed.
According to the National Association of Estate Agents (NAEA), the number of buyers on books has increased but, in the ... More
New Mortgages - Chancellor and mortgage lenders to work together
Chancellor Alistair Darling and the Council of Mortgage Lenders (CML) have announced they will be working together in an attempt to ease pressures on mortgage holders during times of market turbulence.
The banks welcomed the offer of special liquidity from the government to ease their ... More
New Mortgages - Number of approvals in bank mortgages drops
The number of mortgage approvals fell during March to the lowest levels recorded since 1997, according to new research.
Figures from the British Bankers Association (BBA) revealed that 35,417 mortgages were approved for home purchases, a fall of 18 per cent compared with the number ... More
Unsecured Loans - Bradford and Bingley warns of increasing arrears
Bradford & Bingley has warned of increasing numbers of customers falling into arrears with their mortgage payments.
According to the lender, the rise has been noticeable in the past few weeks.
Stephen Crawshaw, chief executive of the firm, said that the bank had seen the ... More
New Mortgages - Chancellor to meet mortgage lenders in emergency talks
Chancellor Alistair Darling is expected to meet up with mortgage lenders to discuss how homeowners can survive the effects of the credit crunch.
The chancellor said he would be meeting with the Council of Mortgage Lenders to talk about how the government's decision to provide banks with ... More
Homeowner Loans - Taking out loans compounds the problem of bad debt
Consumers who take out unsecured and secured loans when faced with debt are just 'compounding the problem', one financial expert has claimed.
Fool.co.uk said that if a homeowner is having difficulty making repayments on a mortgage, then they should speak to their provider rather than ... More
New Mortgages - Chancellor's proposals will only offer borrowers ''temporary respite''
Chancellor Alistair Darling's proposals will only provide borrowers with "temporary respite", one financial expert has claimed.
The comments from Fool.co.uk follow the government's decision to allow high-street lenders to swap mortgage debts for secure government bonds. ... More
New Mortgages - First-time buyers need to save more before buying
The rising cost of living has resulted in a number of younger consumers saving less for a deposit on their first property than before, according to new research.
Findings from a study by Sainsbury's Bank showed that 16 per cent of spenders between 25 and 34 are saving less, with only ... More
New Mortgages - Home sellers forced to reduce prices
Property prices in the UK have dropped during the past month with sellers being forced to come to terms with a more stagnant market, new research has shown.
According to a study from Rightmove, house prices in the UK fell by 0.1 per cent between March 16th and April 12th.
The ... More
Debt Consolidation - ''Rapid and painful'' economic adjustment for UK
A panel of financial experts has claimed that the effects of the global credit crunch are expected to make conditions increasingly difficult for consumers.
In the latest study from Ernst & Young's Item Club, house prices are expected to fall by ten per cent during the next two years.... More
New Mortgages - Lending to worsen during rest of 2008
Mortgage lending is to fall during 2008 despite slight increases last month, one property expert has claimed.
According to the Council of Mortgage Lenders (CML), lending figures rose by five per cent from the £25 billion recorded in February to £26.3 billion in March. ... More
Credit Cards - Credit card rate change costs consumers in interest
Since the Office for Fair Trading (OFT) forced card providers to cut their late-payment fines, credit card borrowers are being charged more, according to a new study.
Figures from financial experts MoneyFacts.co.uk has revealed that the average purchase rate on credit cards has risen to... More
New Mortgages - 'Emotional attachment' deciding factor in buying a house
Consumers decide on buying certain properties due to emotional attachment, one property expert has claimed.
Rightmove said that there are fundamental factors that draw people to particular properties such as price, location, transport and travelling distances to local amenities that are ... More
New Mortgages - Over one million consumers to face negative equity
New research has revealed that 1.2 million consumers could be in a position where they owe more money on their mortgage than their home is worth within the next two years.
This negative equity is expected to hit 13 per cent of mortgages as house prices fall by 15 per cent until 2009, ... More
Debt Consolidation - First-time buyers face 200% increase
House prices for first-time buyers have increased by 200 per cent during the past ten years, according to new research.
The annual Roof Affordability Index has revealed that the average first-time property price has rocketed from £52,674 to £159,494, with house price to income ... More
New Mortgages - Up to £8.7bn paid out in additional mortgage fees
Up to £8.7 billion per year in additional mortgage fees is being paid out, according to new research.
Findings from financial experts uSwitch.com shows that over 2.5 million people (32 per cent) fell into this trap upon the advice of a mortgage advisor.
Almost 900,000 ... More
New Mortgages - Mortgage protection insurance helps homeowners
Taking out mortgage protection insurance can put homeowners in the "ideal situation", one property expert has claimed.
Legal & General said that this is the case, particularly when the mortgage holder has a family, as it offers extra financial support when an employee is ... More
Debt Consolidation - Financial pressures lead to increase in number of '3G' homes
Increasing financial pressures has forced adults with children to provide support to their parents, according to new research.
A study from Prudential reveals that more than 80,000 households in the UK are made up of three generations.
Around ten per cent of adults in the UK ... More
Debt Consolidation - Number of debtors to double due to the credit crunch
The effects of the credit crunch are expected to double the number of consumers falling into debt during 2008, says new research.
An estimated one million UK consumers each owe an average of £25,000, a figure which equates to a national total of £25 billion in unsecured debt, ... More
New Mortgages - First-time buyers delay purchases
Over a million first-time buyers have decided to delay their ambitions of property ownership for 12 months, one housing expert has claimed.
According to research from Abbey, an estimated 1.1 million potential homeowners have decided to hold back from buying property, a figure which makes... More
New Mortgages - House prices falling at fastest rate for 30 years
House prices in the property market are dropping at their fastest rate for 30 years, according to new research.
Findings from the Royal Institution of Chartered Surveyors (RiCS) revealed that 78.5 per cent more surveyors reported a fall in house prices – the highest figure since ... More
New Mortgages - 'Recession virgins' worried about experiencing negative equity
Almost a quarter of homeowners aged between 23 and 34 are nervous about experiencing negative equity due to falling house prices, new research has shown.
Findings from Fool.co.uk showed that one sixth of Britons are 'recession virgins' admit to worrying that their property price may fall... More
Unsecured Loans - Borrowers forced to go to higher cost lenders
The tightening of lenders' purse strings may lead to borrowers being forced to seek funds from higher cost lenders, one financial expert has claimed.
According to Equifax, if the banks begin to reject potential borrowers, then consumers may not take money out.
Neil Munroe,... More
New Mortgages - Credit crunch impact on mortgages is 'quite surprising'
The impact of the credit crunch upon the mortgage market has been 'surprising', one property expert has claimed.
Following the Bank of England's interest rate cut last week, Capital Economics said that the criticism aimed at banks for not cutting their interest rates was not wholly ... More
New Mortgages - Would-be mortgage holders need to save first
Consumers whose finances are not in a "healthy" state will find it difficult to find a bank willing to offer them monetary support when it comes to mortgages, one expert has warned.
Fool.co.uk warned that the need to save is now greater than ever following the latest interest ... More
New Mortgages - Up to 4,000 estate agents to shut over the next year
A third of real estate agents in the UK may be forced to close due to the number of houses being sold dropping, one property expert has warned.
An estimated 4,000 agents out of the 12,000 thought to be in business in the UK are expected to shut their doors over the next 12 months. ... More
Unsecured Loans - Cost of borrowing on cards on the up
The cost of spending using a credit card is on the up despite the Bank of England (BoE) cutting interest-rates three times in the past six months, a financial expert has claimed.
A study by MoneyExpert revealed that the tightening of lenders' purse strings brought on by the credit crunch... More
New Mortgages - Mortgage lenders need to pass on rate cut, says chancellor
Mortgage lenders have been urged by chancellor Alistair Darling to pass on the recent interest rate cut to homeowners to help them balance their finances.
The chancellor is expected to meet with the heads of various banks to discuss measures to ensure that the effects of the rate ... More
New Mortgages - Pensioners spend £23bn on rent
Retirees spend up to £23 billion on rent due to not getting a foot on the property ladder during their younger years, a pensions expert has claimed.
Findings from Friends Provident show that the average pensioner needs an annual income of £11,491 to cover the expenses incurred... More
New Mortgages - Consumers faced with higher mortgage costs despite BoE's decision
Many mortgage holders will be faced with higher premiums, despite the cut in interest-rates from the Bank of England (BoE)
Both Nationwide and Alliance & Leicester announced they were increasing the rates on some of their loans just hours before the BoE's decision was revealed. ... More
New Mortgages - Homeowners still prefer to rent rather than buy, say experts
Despite the recent cut in interest rates from the Bank of England, homeowners still prefer to rent rather than buy, one financial expert has claimed.
Iammoving.com said that the cut is going in the right direction but it will take more than this to get the housing market moving ... More
New Mortgages - Interest rate cut is not enough to bring back first-time buyers
First-time buyers will not be returning to the property market in the current economic climate, one financial expert has warned.
Convex.net said that in the past an interest rate cut may have given those looking to place a foot on the property ladder a boost but this is unlikely in the ... More
Debt Consolidation - It will be ''later rather than sooner'' before financial conditions improve
A financial expert has warned it is unlikely that economic conditions in the UK will improve sooner rather than later.
The present market turmoil and accompanying poor conditions are anticipated to continue for some time, said Fool.co.uk
David Kuo, head of finances with the ... More
Remortgage - HSBC offers extensions on fixed-rate mortgages
HSBC is offering two-year extensions on fixed-rate mortgages sold by rivals, while moneysupermarket.com has praised the move.
Louise Cuming, head of mortgages at the price comparison site, said the move could offer many homeowners a lifeline.
"This clever move will enable ... More
Remortgage - Mortgage demand 'unsure' for future
As the economy continues to send out unexpected signals to investors and consumers alike, some are unsure of the demand for mortgages in the future.
Rebecca Atkinson, news editor of moneywise.co.uk, said that while there is still demand for new mortgages, it will be difficult to tell how... More
Remortgage - Government support to mortgage markets welcomed
The government has appointed former chief executive of HBOS, Sir James Crosby, to lead a Mortgage Finance Working Group, and the news has been welcomed by different parties.
Director General of the Association of Mortgage Intermediaries (AMI), Chris Cummings, said: "He knows the ... More
Homeowner Loans - BoE cuts interest rates by 0.25%
The Bank of England (BoE) has announced an interest rate cut by 0.25 per cent to rest at five per cent.
The rate cut will be welcomed by borrowers but that it would not be enough to improve conditions for lenders, according to director-general of the Council of Mortgage Lenders, Micheal ... More
New Mortgages - Housing wealth leaves some mortgage customers in a strong position
Although the financial position of homeowners may vary widely, the vast majority are in a strong position due to the amount of unmortgaged housing equity they possess, an article has claimed.
The article in the relaunched Council of Mortgage Lenders (CML) News & Views states ... More
New Mortgages - Prepare for more house price falls
Consumers should prepare themselves for further house price falls during 2008 with one financial expert warning that the average value of a property could dip by as much as 20 per cent.
Fool.co.uk, the consumer advice service, said that the Halifax figures show that house prices rose 1.1... More
New Mortgages - First-time buyers could become ''an endangered species''
First-time buyers could become "an endangered species" following recent developments in the housing market, a property expert has claimed.
Moneysupermarket.com said that following the withdrawal of Abbey from the 100 per cent LTV market, and an increase of 0.37 per cent on ... More
New Mortgages - Graduates priced out of the housing market due to economic volatility
Graduates could face being priced out of the housing market due to market volatility brought on by the credit crunch, one money expert has stated.
UNIAID, a financial charity for university leavers, said that the current economic volatility has made it difficult for graduates to find ... More
New Mortgages - House prices slumped by 2.5 per cent in March
The latest figures from the Halifax show that the housing market slowdown worsened last month with fall of 2.5 per cent following the dip of 0.4 per cent in February.
Halifax, part of banking group HBOS, said this was the biggest monthly drop since September 1992.
The average ... More
New Mortgages - Bank need to reduce interest rate to ease credit crunch effects
The Bank of England (BoE) needs to reduce its interest-rates to restore confidence in the housing market after the economic turmoil brought on by the credit crunch, one property expert has said.
According to the National Association of Estate Agents (NAEA), confidence in the economy and ... More
New Mortgages - Mortgage holders should insure themselves against credit crunch
With news of repossessions, mortgage arrears and redundancies increasing, one finance expert has warned that mortgage holders should insure policies.
According to figures released last month from the Citizens Advice Bureau, mortgage arrears problems increased by 35 per cent during 2008. ... More
Unsecured Loans - Difficult to predict how long mortgage demand will last
While there is still demand for mortgages, it is difficult to predict how long this will last, one property expert has said.
Moneywise.co.uk attributed this market uncertainty to the lack of first-time buyers, who are struggling to get on the property ladder without a large deposit. ... More
New Mortgages - Demand for five year fixed-rate mortgage expected to rise
Mortgage lenders have been warned to brace themselves for an increase in demand for five-year fixed rate mortgage deals, according to new research.
Findings from a study by Abbey revealed that almost a quarter of respondents would opt for a five-year deal if they had the opportunity to ... More
Credit Cards - Up to £3.1bn withdrawn from consumers by credit limit cuts
Credit card companies have withdrawn up to £3.1 billion by cutting the spending limits of their customers, new research has shown.
Findings from MoneyExpert have revealed that the average reduction is £1,600 with an estimated 1.8 million credit card customers having had their ... More
New Mortgages - The credit-crunch has boosted buy-to-let market
The tightening of mortgage lending due to the effects of the credit crunch has boosted the buy-to-let mortgage market in Scotland, one property expert has claimed.
Estate agents Rettie & Co said that there has been "a long overdue increase" in demand for rental properties ... More
New Mortgages - Halifax interest-rate rise on mortgage products ''no surprise''
The rise in interest-rates on Halifax's mortgage products is "no surprise", one financial expert has claimed.
Changes to the product involve a rate increase for those without a 25 per cent deposit, which is expected to effect up to a third of potential new customers. ... More
New Mortgages - Mortgage market future dependent on how soon the market ''returns to normal''
The outlook for the UK property market is dependent upon how soon the turbulence in the property market calms and "returns to normal".
According to Knight Frank, the state of the mortgage market depends on whether the market volatility brought on by the credit crunch steadies ... More
Unsecured Loans - Lenders are not making enough credit checks
Lenders are not undertaking enough credit checks on consumers before offering them a loan, a financial advisory service has said.
According to uSwitch, the Banking Code, which was recently amended to offer consumers more protection, still has room for improvement.
Up to 70 per ... More
New Mortgages - Majority would opt for the chancellor's 25-year fixed-rate mortgage deal
The majority of people would opt for a 25-year fixed-rate mortgage deal if given the choice a new study has revealed.
Following the chancellor Alistair Darling's pre-budget speech, where he said people should have "the choice of long-term fixed-rate mortgages" as they afford ... More
New Mortgages - First-time buyers looking abroad for property
Those consumers looking to get a foot on the property ladder are turning their attention overseas, one housing expert has claimed.
According to BuyAssociation, first-time buyers have a certain amount of money, and in the current financial climate, the sum is not getting them very much at... More
Debt Consolidation - Consumers need to be sensible when consolidating debt with a loan
Those consumers who choose to consolidate their debt through a loan need to be disciplined in order to benefit, one financial expert has said.
David Kuo, head of personal finance at fool.co.uk, said that the average size of a loan is £7,000 and four out of every ten people take one ... More
New Mortgages - Mortgage fraud awareness increased
Awareness of mortgage fraud has become more apparent due to house price inflation, one property expert has claimed.
The Council of Mortgage Lenders (CML) said that although no official data has been released to show the extent of mortgage fraud, awareness of it has been raised recently ... More
New Mortgages - Millions of mortgage-holders face payment increases after fixed-rate deals close
As 1.4 million fixed-rate mortgage deals come to an end in the forthcoming months many homeowners face increases in their monthly repayments, one financial expert has claimed.
According to a study from Fool.co.uk, home owners face an increase of up to 6.3 per cent in monthly payments ... More
New Mortgages - Tracker mortgages more expensive for borrowers
Despite recent cuts by the Bank of England to interest rates, the price of a tracker-mortgage has increased, one financial expert has claimed.
According to money researchers Defaqto, for two-year trackers, the period with the most plans on offer, the average loading above BBR increased ... More
New Mortgages - Repossession can happen after three months, say experts
vProperties can be repossessed as quickly as three months after the first warning issued to the owners, according to one housing expert has claimed.
However, David Warnes, director of the Repossessions Advice Centre (RAC), said: "You have to bear in mind that the courts try to be on... More
New Mortgages - Levels of activity in the housing market 'due to fall further'
Activity levels in the housing market are expected to fall even further over the forthcoming months, one financial expert has claimed.
The Royal Institution of Chartered Surveyors said that the market will stumble as mortgage lenders begin to "shut their doors" on new customers... More
New Mortgages - Up to 1.4 million likely to face higher rates as fixed-rate deals end
When fixed-rate mortgages end the 1.4 million consumers who use these products are likely to face increased mortgage costs, according to the Financial Services Authority (FSA).
Because of this, the Money Advice Trust charity has been working with the Council of Mortgage Lenders (CML) to ... More
New Mortgages - First Direct withdraws from new mortgage market
Online bank, first direct has announced it is no longer offering mortgage deals to new customers.
According to the bank, the move will enable it to focus its efforts entirely on processing the high number of applications for its home loans it has received in recent weeks.
The ... More
Unsecured Loans - Avoid security and go for flexibility when dealing with personal loans, say experts
When deciding upon which personal loan take out consumers should avoid security and go for flexibility, one financial expert has claimed.
Consumer advisors Fool.co.uk said these are the two most important considerations when weighing up their options.
David Kuo, head of ... More
New Mortgages - House prices in England and Wales remain static
The price of homes in England and Wales has remained static during February, according to the figures.
Findings from the Land Registry, based on a survey of sales, showed that the average price of a property remained at £185,616 and the annual rate of growth has continued to fall ... More
Debt Consolidation - Consumers have ''personal responsibility'' to manage debt
People with debt problems should take responsibility for sorting out their own finances, an industry expert has stated.
James Falla said that, although banks and other financial organisations can offer some budgeting guidance for people with money worries, consumers must view managing ... More
New Mortgages - Number of home moves is down ''substantially''
The number of people moving house has gone down substantially down to an estimated 30-40 per cent, one housing expert has said.
According to Iammoving.com, some of the moving consumers are thinking it might be prudent to sell then rent and hold on to the cash for a while and see what ... More
Unsecured Loans - Personal loan rates have increased despite rate cuts
Despite the Bank of England interest-rate cuts, banks building societies and financial service providers have increased their personal loan rates, one financial expert has claimed.
According to MoneyExpert, average rates on all unsecured personal loans have risen from 10.62 per cent at ... More
New Mortgages - First-time buyers find it hard to get on the property ladder 'in a stagnant market'
The reduction in the number of mortgage deals available is making it harder for first-time buyers to get on the property ladder and subsequently stagnating the market, one financial expert has claimed.
According to moneysupermarket.com, lending is subdued, the number of loans being ... More
Credit Cards - Consumers urged to take care when using credit
Britons have been advised not to become reliant on credit as a means of paying for everyday items.
Fool.co.uk believes many consumers in the UK could fall foul of the market should credit become harder to come by in future.
A survey by the company found that almost one in three ... More
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