May 2008 - In the News
Unsecured Loans - Debt Consolidation loans
In a economic climate where new research from PruProtect shows over half of UK consumers feel financial worries are becoming their main concern, increasing numbers of people are turning to loans as a way out of their financial difficulties.
However, with the number of approved loans ... More
Unsecured Loans - Lenders need to be contacted ''as soon as possible'' over missed payments
If a consumer finds themself at risk of falling into mortgage arrears then they should contact their lender as soon as possible, a housing expert has advised.
The Council of Mortgage Lenders said that homeowners should get in touch with their lender even before they miss a payment. ... More
New Mortgages - Homeowners urged to take action as house prices fall
With house prices falling homeowners have been urged to take action to avoid an unhealthy Loan-To-Value (LTV) ratio by making small overpayments on their mortgages.
Fool.co.uk warns that if a homeowner is borrowing more than 90 per cent of a value of a property, then when their current ... More
Debt Consolidation - Interest rates to stay at 5% for the rest of the year
Interest rates could remain as high as five per cent at the end of 2008, one financial expert has predicted.
The Centre for Economics and Business Research (Cebr) said that the economic slowdown and pressures of inflation are likely to keep interest rates as they are with the possibility... More
Debt Consolidation - No money set aside for emergencies
Up to a quarter of people in the UK have no or very little money set aside in case of some sort of emergency, shows new research.
Findings from a study by online bank Egg reveals that over half of Brits do not have enough money saved to provide for their families if they were to be off ... More
New Mortgages - Sale and rent back needs regulating
The sale and rent back area of the property market "desperately needs" regulating, one property expert has claimed.
According to the Homeowners Advice Centre, this trend - which involves homeowners selling their property at a discount in return for the option to remain in the ... More
New Mortgages - House prices fall again in May
House prices have dropped for the seventh consecutive month, the longest run of negative results recorded since 1992, new research shows.
Findings from Nationwide's house price survey reveal that the cost of property fell by 2.5 per cent during May, a figure which represents the biggest... More
New Mortgages - Housing market driven by credit
House prices have been driven by credit and not by supply and demand, one property expert has claimed.
Firstrung said that now this credit has gone the market is underpinned by affordability yet wages have only increased in line with inflation.
Paul Holmes, chief executive ... More
Debt Consolidation - Financial worries top of Britons' concerns
Over half of Brits believe that life has become increasingly pressured with the onset of the credit crunch and house price falls, one financial expert has claimed.
New research from PruProtect revealed that 52 per cent of Britons consider their financial situation to be their greatest ... More
Debt Consolidation - More repossessions than last year but not as many as in the 1990s
The number of repossessions is expected to rise more than last year during 2008 but levels are not expected to be as high as they were during the early 1990s, one housing expert has claimed.
According to the Council of Mortgage Lenders (CML), the current housing crisis is taking place in... More
New Mortgages - Up to £7bn of loans at risk of default
An estimated £7 billion worth of loans are at risk of being defaulted on unless lenders agree to modify the terms and conditions, new research has revealed.
Findings from a study by ratings agency Standard & Poor's showed that nearly 22 per cent of subprime mortgage customers ... More
New Mortgages - New government scheme launched to help first-time buyers
Details of a new government scheme have been announced that are expected to help first-time buyers get a foot on the property ladder.
The MyChoiceHomeBuy scheme, which is part-funded by the government, offers the contribution of up as much as 50 per cent or as little as 15 per cent of ... More
Unsecured Loans - 'Tougher lending conditions' behind drop in switching
Increasing interest rates on loans and tougher lending conditions are behind a drop in the number of household and financial products being switched, one financial watchdog has claimed.
Research from MoneyExpert revealed that there has been a 17 per cent drop in the number of people ... More
New Mortgages - First-time buyers more likely to go for a 'period home'
First-time buyers are more likely to go for a 'period home' despite the security of a National House Building Council guarantee, one housing market expert has claimed.
Over half of those homebuyers questioned by the Halifax in a new survey said they would be prepared to buy an older ... More
Remortgage - Many opportunities to acquire cheap property this year
There will be many opportunities to pick up cheap property in the buy-to-let market during the next year, one property expert has claimed.
Landlord Mortgages advised that opportunities will arrive but the question of to what degree prices will fall is unclear.
Managing director... More
Debt Consolidation - Disadvantaged families cannot go on holiday because of their ''lack of money''
Up to two million families cannot go on holiday due to their lack of disposable income, one family finance expert has claimed.
The Family Holiday Association said it does not matter whether prices go up at half-term or not as it is an underlying lack of money which is preventing families... More
New Mortgages - Property market is stable despite credit crunch, say experts
The housing market is still stable despite the adversity it faces brought on by the credit crunch, one property expert has claimed.
According to research from the National Association of Estate Agents (NAEA), members have reported that they sold an average of seven homes each last month,... More
Debt Consolidation - British consumers are becoming increasingly open about debt
Increasing numbers of Brits are being open about debt and the state of their finances, according to new research.
Findings from a survey conducted by IVA.co.uk revealed that over a quarter of consumers in the UK said they had talked about their financial worries and debt problems to ... More
New Mortgages - Credit crunch has halted housing market
The credit crunch has resulted in the housing market slowing down as potential homeowners have found it increasingly difficult to get a mortgage, one property expert has claimed.
According to the Federation of Master Builders, developers have been forced to cancel projects as demand has ... More
New Mortgages - Property situation is as bad as its ever been
The property situation for first-time buyers is as bad as it has ever been, one housing expert has claimed.
Firstrung said that the housing market has to change as that is the only way it can become affordable again for consumers looking to get a foot on the property ladder. ... More
Debt Consolidation - Sex and the City generation not saving for the future
Only seven per cent of women listed financial insolvency as being important to them, according to the results of a new survey.
Findings from the Sex and the City Generation: Fashionistas not Cashonistas report by Friends Provident revealed that over half of those questioned said they ... More
New Mortgages - Weddings financed by loans
Up to ten per cent of consumers said they would take out a loan to finance their wedding, according to the results of a new survey.
Findings from Fool.co.uk showed that a further three per cent of respondents said they would remortgage or take out a second loan in order to pay for their ... More
Debt Consolidation - Brits cut back on spending
Up to 35 million British consumers have recently made some form of financial cutback, according to new research.
Findings from a study by Alliance & Leicester revealed that one third of respondents said they expected their disposable income to decrease during the next six months. ... More
Debt Consolidation - Rising fuel prices pushing Brits into debt
Up to two-thirds of Brits are "very concerned" that they will not be able to cope if fuel and energy prices continue to rise, new research has shown.
Findings from a survey by moneysupermarket.com showed that a further 29.2 per cent of respondents said they were ... More
Debt Consolidation - Consumers should not delay in submitting claims for unfair bank charges
Consumers should not delay in submitting their claims to banks over unfair charges, one financial expert has said.
Fool.co.uk advised customers that they can claim back unfair charges up to six years after they occurred.
However, as each day passes, it is a step closer to the ... More
New Mortgages - Citi pulling out of mortgage market may have ''severe implications''
The Citigroup's decision to remove itself from the UK mortgage market may have severe implications for consumers, according to one financial expert.
Moneysupermarket.com said the decision will affect those needing to borrow but have less-than-perfect credit records.
A ... More
New Mortgages - Bank of England keeps interest rates the same
The Bank of England's (BoE's) Monetary Policy Committee (MPC) voted almost unanimously to maintain the key base rate of interest this month.
Only one member of the MPC voted for cutting interest by 0.25 per cent while the other eight said that rates would be best being kept at the ... More
New Mortgages - Many savers are not getting the best return on their money
Many savers are not getting the best return on their money as it has been put into an account with a low interest rate, according to one financial expert.
Although there are some good rates available the vast number of products on the market means that some consumers miss out on the more... More
New Mortgages - Number of property deals falling
The number of property deals is expected to fall by 35 per cent during 2007, according to new research.
Findings from a study by the Council of Mortgage Lenders (CML) showed that house prices are expected to be seven per cent lower at the end of 2008 than they were at the close of 2007. ... More
Debt Consolidation - Up to 40% of consumers would struggle to survive on savings
An estimated 40 per cent of consumers would find it difficult to survive on their savings alone for more than a month, according to new research.
Findings from a study by Callcredit showed that over 50 per cent of spenders aged between 25 and 34 would have to turn to loans or credit to ... More
New Mortgages - Demand for five-year mortgage increasing
Consumer demand for the five-year mortgage products is increasing, according to new research.
Findings from a study by Abbey showed that up to 30 per cent of mortgage holders said they would opt for a five-year deal if they had to remortgage tomorrow.
Demand for the product has... More
Credit Cards - 'Teenagers want loans when they cannot budget'
Teenagers are looking to take on credit cards, overdrafts and loans when they reach 18 - despite not being able to understand basic financial budgeting, one economic expert has claimed.
New research from the Axa Group showed that as many as 44 per cent of 15 to 17 year-olds are planning ... More
Unsecured Loans - Use of payday loans is ''probably symptomatic of underlying debt problem''
Regularly using payday loans could be a "symptom of a more serious underlying debt problem", one financial expert has claimed.
The National Debtline said that if a consumer has run out of money before they receive their next pay cheque then there is a problem.
Beccy ... More
Credit Cards - Lying on a loan application will make future credit hard to come by
Lying on credit applications now will make obtaining credit in the future difficult for a consumer, a financial expert has warned.
Fool.co.uk said that increasing numbers of consumers are lying on their applications as it is becoming ever more difficult to obtain credit in the current ... More
Debt Consolidation - 'High credit levels of the past to blame for debt of today'
Consumers in the UK are suffering due to years of economic growth based on high levels of customer credit, a former Conservative chancellor has claimed.
Speaking on ITV's GMTV, Lord Lawson said that economic growth in the UK has been rapid as it has in the rest of the world. ... More
Unsecured Loans - Personal loan rates increased by 1%
Despite the Bank of England (BoE) cutting interest rates three times, the average rate on personal loans between £5,000 and £7,500 has increased by one per cent during the past six months, according to a financial expert.
Findings from MoneyExpert revealed that the average rate... More
New Mortgages - House sales reach lowest level since 1974
Property sales in the UK are expected to fall to their lowest level since 1974, according to new research.
Findings from the Royal Institute of Chartered Surveyors showed that the number of homes expected to change hands during 2008 will be down by 40 per cent.
Speaking to This... More
New Mortgages - Endowment not enough to assist consumers
Many mortgage holders who took out endowment policies may not be able to pay off their loans, according to one investment adviser.
Findings from Fairinvestment.co.uk showed that up to 86 per cent of policy holders have been advised that their endowment will not be enough to pay off their... More
New Mortgages - More of the middle-class seek advice on debt
Increasing numbers of the supposedly affluent middle-classes are being forced to seek advice on debt, according to a new survey.
Findings from a study by Transact, the financial advice charity, showed that middle-class areas had the biggest increases in the number of consumers seeking ... More
Debt Consolidation - Households are struggling financially due to rising cost of living
Increasing numbers of people are looking for financial advice as they find it more difficult to pay their bills, according to one financial expert.
The Citizens Advice Bureau (CAB) said it has seen an increase in mortgage arrears cases with 35 per cent more in the first few months of ... More
New Mortgages - 'It is still possible to buy property in the current market'
It is still possible for consumers to purchase buy-to-let property despite the market volatility, one expert has said.
Speaking at a debate on the future of the housing market, Jonty Crossick, chief executive officer of Ready2invest, said that those looking to buy need to stick to the ... More
New Mortgages - Elderly struggling with debt
Up to one in two elderly consumers who are struggling to pay living costs are being forced to reduce their spending, according to new research.
Research from Engage Mutual Assurance showed that up to ten per cent of those retirees struggling with costs have put themselves further into ... More
New Mortgages - More help for those in mortgage arrears is needed, says charity
A charity has called for the government to do more to help homeowners struggling with making their mortgage payments.
Figures from the National Debtline show that the number of homeowners turning for help with their mortgage arrears has increased by 35 per cent during the past two years.... More
Debt Consolidation - Increasing numbers turn to payday loans
Increasing numbers of consumers are turning to payday loans to help them to cope with the additional financial strain brought on by rising costs of food and petrol, according to one financial expert.
Research from Moneysupermarket.com said that the take-up of these short-term payday ... More
New Mortgages - First-time buyers turn to intermediaries
Increasing numbers of first-time buyers are turning to intermediaries to help them get their feet on the first rung of the property ladder, according to new research.
Figures from a study by the Association of Mortgage Intermediaries (AMI) revealed that number of potential property ... More
New Mortgages - Negative equity to affect all recent home buyers
Negative equity will affect all those homeowners who bought property during the last couple of years, according to one property expert.
Firstrung said that the extent of the effect of negative equity can differ from person to person depending on their circumstances.
Paul ... More
New Mortgages - Lenders unlikely to offer perks to attract customers
Lenders are not likely to offer potential customers incentives in the current climate where the number of mortgage products on offer is reducing, one housing expert has claimed.
Moneyfacts said that six or seven months ago the market was very competitive with banks competing with each ... More
Credit Cards - People need to be careful 'they are not too reliant on credit'
Consumers should be careful about getting into debt as the cost of living and household spending increases, one financial expert has claimed.
According to Credit Action, lenders are more unwilling to give credit to consumers than they were 12 months ago with products such as overdrafts, ... More
New Mortgages - House prices to fall between at least five and ten per cent
House prices are expected to fall by as much as five or ten per cent "at best" during 2008, according to a government minister's notes.
Caroline Flint, housing minister, unknowingly exposed her notes intended for a cabinet briefing to a photographer while she was walking to the... More
Credit Cards - Over 2.5m credit cards affected by credit card 'shake-up'
More than 2.5 million credit card users have been affected by a recent credit card 'shake-up', according to one financial expert.
Research from comparison service uSwitch.com showed that these consumers have been hit with an annual or monthly fee, had their credit limits reduced or been ... More
New Mortgages - 'Now is a good time to get into property', says experts
The current housing market is a "good time" to buy a property particularly if it is for a long-term investment, according to one housing expert.
Prices are falling in the market at the minute said the property investors network and because of this you can find ... More
Unsecured Loans - Loan providers 'making use of social networking'
Social networking websites are being utilised by credit providers to advertise their products, according to one credit charity representative.
A spokesperson from Credit Action told the Press Association that social networking sites have become "hugely popular" and credit ... More
New Mortgages - Number of approved loans dropped during April
The number of approved loans for housing purchase has fallen again during March, according to new figures.
Findings from the Council of Mortgage Lenders (CML) showed that the number of mortgage approvals was down by one per cent to 46,500 from the 47,200 recorded in February. ... More
New Mortgages - Housing market decline continues
The number of surveyors reporting falls in house prices has increased for the ninth consecutive month, according to new figures.
Findings from the Royal Chartered Institution of Surveyors (Rics) revealed that 95.1 per cent more surveyors saw property prices drop than go up. ... More
Debt Consolidation - First-time buyers ''least likely group to be repossessed''
First-time buyers are the "least likely group" of property owners to face repossession, according to one property expert.
Firstrung said that those consumers who have just moved onto the property ladder are usually able to afford their home as they will have been quite ... More
New Mortgages - Prime market ''considerably'' more stable than domestic market
The prime housing market is considerably more stable than the mainstream domestic property market, one expert has claimed.
London Central Portfolio said that prime properties are held by long-term investors either as second homes or rental investments and are united by a low reliance on ... More
New Mortgages - Increasing numbers of Brits want house prices to fall
Increasing numbers of homeowners in Britain would like to see house prices fall, according to the results of a new survey.
Findings from a study commissioned by the BBC revealed that up to 28 per cent of Britons questioned said they would like to see house prices come down.
Up ... More
Debt Consolidation - Debit cards 'retain their popularity'
Debit cards continue to be popular with consumers with spending rising by 11 per cent, according to new research.
Findings from APACS, the UK payments association, showed that while debit card spending has risen, the use of cheques dropped by 7.5 per cent in terms of value and 13 per ... More
Debt Consolidation - Rise in the number of repossessions in line with expectations
The increase in the number of repossessions seen in recent figures is in line with expectations, one property expert has claimed.
Although recent figures from the Ministry of Justice showed that the number of possession orders increased by nine per cent during the first quarter of 2008, ... More
Credit Cards - Cutting APR rates could reduce credit crunch effects
Nothing has been done to reduce the charges on outstanding credit card balances despite the three cuts in interest rates, one financial expert has claimed.
According to financial advisory service Fool.co.uk, the domestic effects of the credit crunch on consumer purse strings could be ... More
Debt Consolidation - Repossessions to go up by 25%
The number of homeowners who face losing their homes is expected to go up by 25 per cent during 2008, according to new figures.
Findings from a study of the number of repossession cases passed through courts in England and Wales by the Ministry of Justice are expected to reveal that over... More
New Mortgages - Interest rate hold ''disappointing'' for property industry
The Bank of England's (BoE's) decision to keep interest rates the same is "disappointing news" for the property industry, one expert has claimed.
Convex.net said that yesterday's move from the BoE's Monetary Policy Committee (MPC) to not cut interest rates for the fourth time ... More
New Mortgages - 'Mortgage costs to remain high for two years'
Mortgage payments are expected to remain high for the next two years due to the effects of the credit crunch, according to one financial expert.
Iain Cornish, chairman of the Building Society Association (BSA), stated that the credit crunch has led to the tightening of lenders' belts in... More
New Mortgages - Interest rates to remain the same
The Bank of England (BoE) is expected to keep interest rates the same despite increasing economic pressures, according to analysts.
However, findings from a series of studies released this week have indicated that consumer confidence in the UK has dropped further and house prices are ... More
Debt Consolidation - Prices first-time buyers prepared to pay dropping
The prices first-time buyers are prepared to pay for a property are dropping, one financial expert has claimed.
Moneyextra.com stated that the fall in the amounts being offered for first homes is dropping due to the relatively small number of buyers trying to get on the property market. ... More
Debt Consolidation - Number of insolvencies rising
The number of people declaring themselves bankrupt or entering an Individual Voluntary Arrangement (IVA) is increasing, according to new research.
A study by the Insolvency Service showed that 25,264 consumers admitted they were insolvent during the first quarter of 2008, an increase of ... More
Debt Consolidation - Household bills take up more of monthly wage
Bills take up the largest proportion of a family's monthly wage in 17 years, one financial expert has claimed.
Research from Capital Economics revealed that rising utility bills, fuel prices and increasing costs for household goods have tightened consumer spending further.
Over... More
New Mortgages - Housing market worst hit by credit crunch
The housing market has been the worst hit area of the economy by the credit crunch, one financial expert has claimed.
Fairinvestment.co.uk said that lenders have been forced to pull their best deals and mortgage structures have been changed to include fees and bigger deposits. ... More
Debt Consolidation - People still 'flocking to London despite economic doom and gloom'
Despite increasing rental prices due to the economic downturn, people are stilling looking to move to London, according to one property expert.
Foxtons letting agency said that there are a high number of people moving to the capital and renting property.
This group would have ... More
New Mortgages - 'Equity release schemes still an option'
Equity release schemes are still an option for those looking to release value from their property despite falling house prices, one property association warned.
According to Safe Home Income Plans (SHIP), equity release is safe to use as it is a long-term product proposition and as such,... More
New Mortgages - Drop in the number of buy-to-let mortgage products available
An estimated 40 per cent of the buy-to-let products available have disappeared from the market in the past month, one financial expert has claimed.
Findings from moneysupermarket.com showed that up to five per cent of Brits have been forced off the property ladder with increasing ... More
Debt Consolidation - Number of bankruptcy cases in the UK increasing
Over 100,000 insolvencies have been predicted to occur by the end of the year as consumer debt grows by £1 million every five minutes, one financial expert has claimed.
uSwitch.com stated that 292 Brits declare themselves insolvent every day while 74 homes are repossessed, revealed ... More
Debt Consolidation - Using debt to fund property purchase is ''very dangerous''
One financial expert has called for first-time buyers to take care when attempting to buy a house without having the funds in place.
First-time buyers who are relying on unsecured loans, borrowing and credit card debt to raise the money for their deposit are putting themselves at risk of... More
Credit Cards - Expert: Be certain of credit card approval before applying
People need to be "almost certain" they will be approved for a credit card before applying for it, according to an expert.
Unsuccessful applications can count against people's credit rating in the future, said David Kuo, head of personal finance at Fool.co.uk.
In ... More
Credit Cards - No cut in interest rates predicted
Ahead of the impending interest rate decision, expected by the Bank of England (BoE) next week, many economists feel no change will occur at all.
The Centre for Economics and Business Research has predicted the chance of no change occurring to interest rates next week is at 70 per cent ... More
Debt Consolidation - People in debt should not let it get out of control
People who are concerned about the state of their finances should not let the situation get any worse before tackling it.
If people implement a three-point plan, of not letting the problem get worse, seeking advice and contacting their bank or loaner, they can overcome the debt, according... More
Debt Consolidation - First-time buyers using debt to fund house deposits
Credit cards, borrowing and unsecured loans are three of the methods a number of first-time buyers are using in order to finance the deposit upon their first home, according to new research.
Findings from a study IAmMoving.com showed that up to 30 per cent were risking debt by using ... More
New Mortgages - Housing market is 'set to get worse'
Any "green shoots of recovery" to be found within the housing market maybe a long way off, claims one property expert.
Fool.co.uk warned that the recent statistics from the Bank of England relating to the drop in mortgage approvals and the Nationwide's figures showing the sixth... More
New Mortgages - Britons will 'always favour' buying over renting property
Despite the current economic climate, the British tradition of buying a house to live in rather than renting one is unlikely to change, claims a property expert.
LudlowThompson, residential property agent, said that many consumers see a home as their biggest accumulator of wealth rather ... More
Debt Consolidation - Annual property prices drop by 1%
House prices fell by 1.1 per cent during March and are one per cent lower than this time last year, according to new research.
The findings from a study by Nationwide revealed that this was the first year-on-year fall since 1996.
Now the average house price is at to ... More
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