July 2008 - In the News

Debt Consolidation - Rises in loan rates drive borrowers to doorstep lending

A rise in personal loan rates over the past month, as well as the tightening of lending restrictions at the nation's banks, is driving borrowers to doorstep lending, it has emerged.

Daily ... More

Credit Cards - Consumer confidence 'dives to record low'

A barometer of consumer confidence hit a record low during this month after the current economic situation badly affected people in the UK, research has shown.

The GfK NOP measuring scale hit minus 39 in July, the lowest level recorded since 1974 when the company started its survey and ... More

New Mortgages - Lloyds TSB profits down by 70%

Lloyds TSB has announced that pre-tax profits have fallen by 70 per cent in the first half of the year and blames the problems of financial markets and the global economic slowdown for their losses, it has emerged.

Britain's fifth largest bank took a £585 million blow after ... More

Debt Consolidation - Fool.co.uk: Credit crunch is our fault

Questionable lending has been criticised by a financial information website after it emerged through its research that both lenders and borrowers are passing money that should be left alone.

Fool.co.uk's survey found that two in seven people blamed banks for the credit problems, with 94 ... More

Debt Consolidation - The cost of living

The effects of the credit crunch can be seen in consumer wallets and purse strings as the cost of living increased throughout the year due to the rising cost of fuel and food prices.

Yesterday, British Gas applied more pressure on consumer budgets by announcing its biggest ever price ... More

New Mortgages - Nationwide: House prices continue to tumble

Recent research has found that housing purchase activity has reached a "new low", according to Nationwide, with new mortgages following suit.

The building society detected an average ... More

New Mortgages - Fixed-rate fall gives 'stable outlook'

People looking for new mortgages have been given a "faint glimmer of hope" by the continued fall in fixed-rate deals as lenders have started to pass on the cuts to borrowers, a financial ... More

New Mortgages - Urgent action in mortgage market 'must be taken'

The National Association of Estate Agents (NAEA) has urged the government to ease the difficulties in the marketplace for people attempting to get new mortgages, after its report identified the ... More

New Mortgages - Abbey is example of 2008's "movers and shakers"

The passing of Halifax Bank of Scotland (HBOS) by Abbey in the mortgage market has been labelled as another example of "movers and shakers" in 2008, according to an online comparison website.

A statement from moneysupermarket.com has commented on the recent development in the ... More

Unsecured Loans - Tesco buy RBS out of Personal Finance

Royal Bank of Scotland's 50 per cent share of Tesco Personal Finance was bought out by the supermarket today in a £950 million deal to take full control of the former joint venture.

Tesco said that the move would allow it to extend its financial services "over time" to that... More

New Mortgages - Mortgage loans 'hit record low'

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New Mortgages - HBF: Urgent action needed with mortgages

A major homebuilders representative body today registered its disappointment with Sir James Crosby's interim report by demanding urgent action to be taken to free up new mortgage finance ... More

New Mortgages - Property ladder may stay 'a rung too high'

The rising cost of living and a lack of available new mortgages has led many people to abandon the notion of owning a house, according to research by a price comparison ... More

Credit Cards - Credit card rates 'soar in time for holidays'

Credit card companies are hiking interest rates as families are heading out for their holidays, the Daily Mail today reported.

The newspaper added that the American card provider MBNA, which supplies ... More

Debt Consolidation - Consumers 'value independent financial advice'

Consumers are still seeking advice on mortgages and retirement in the current economic climate, new research has suggested.

Financial search website Unbiased.co.uk revealed that over 250,000 people consulted an independent financial adviser (IFA) in the first half of ... More

New Mortgages - Borrowers and lenders turn to long-term mortgage deals

The amount of fixed-rate new mortgages available for over ten-year periods has almost doubled in the past year due to concerns over the credit crunch, research from a comparison website has ... More

Homeowner Loans - Secured loan 'still an option'

A financial website has reminded consumers that a secured consolidation loan is still a good choice for solving homeowner debt.

Thinkmoney.com said that the secured loans market had faced many difficulties recently due to the current economic climate but, despite this, there were many ... More

New Mortgages - Halifax rate reduction could help property market

Britain's largest mortgage lender Halifax has announced another reduction to a selection of several of its mortgage products, becoming the most recent bank to join in with what the BBC today described as a "recent flurry of rate cuts by other lenders".

Halifax announced that its... More

New Mortgages - Jersey first-time buyers hit hard

First-time buyers (FTBs) from the island of Jersey will have a more difficult task in getting a mortgage after one of the island's biggest lenders cut the level of loan it offers, the BBC has reported.

Jersey Home Loans today cut its maximum mortgage from 90 to 75 per cent, forcing FTBs ... More

New Mortgages - Mortgages approvals hit record low

The Bank of England has revealed that four out of ten house hunters were pulling out of sales after failing to get a mortgage or losing their faith in the market.

Updated figures suggest that the credit crisis continues to affect the property market, with the Bank adding that it was ... More

Debt Consolidation - Credit unions welcome reform

Proposed changes by the government to remove restrictions from credit unions have been welcomed by the Association of British Credit Unions Ltd (Abcul), which sees the reform as providing benefits for both lenders and borrowers.

The association added that the allowance of community groups... More

New Mortgages - NAEA: Govt need to take action now

The National Association of Estate Agents (NAEA) today asked the government to take action to help first-time buyers (FTBs) get onto the housing ladder and, as a result, ease the problems on the property market.

In a statement, the NAEA urged the government not to reflect moves made by ... More

Debt Consolidation - NS&I: Brits unaware of tax and inflation effects

A recent survey by a savings company has found that the older are the wiser when it concerns the understanding of inflation and tax effects on personal funds, with misunderstanding perhaps leading to individual debt.

The study by National Savings and Investments (NS&I) found that ... More

New Mortgages - Two-year tracker mortgage 'becoming better value'

Homeowners are being urged to look at all available options when applying for a new mortgage as new research has suggested that the average two-year tracker is becoming a better value option.

The study conducted by moneysupermarket.com found that the gap between the average two-year ... More

Debt Consolidation - FSA welcomes govt credit union proposals

The Financial Services Authority (FSA) has welcomed news by the government that it will change its policy on credit unions to provide a wider range of services to their members.

It added that policy reform will allow those who are at risk financially or have limited access to other ... More

Credit Cards - Consumers hit by credit card firms

Nearly a third of credit card owners have had an annual percentage rate (APR) rise on their existing accounts over the last year, research from an online comparison website has revealed.

Moneysupermarket.com found that five major providers were responsible for a lot of the rate changes, ... More

New Mortgages - FSA announces mortgage fraud approach

The Financial Services Authority (FSA) today announced the measures it will take to prevent mortgage fraud in the UK after highlighting the growing problem.

The FSA's approach showed that it hoped to prevent fraud happening before it started and is based around constant ... More

New Mortgages - CML: Mortgage fraudsters beware

The Council of Mortgage Lenders (CML) today released a stark warning to those engaged in mortgage fraud.

After CML efforts to tackle mortgage fraud were recognised by the Financial Services Authority (FSA), which agreed with the council's proposition for lenders and the regulator to work ... More

Credit Cards - Credit card firms 'cash in on ATMs'

Credit card companies are "cashing in" on customers who use their cards in ATM machines, new research from an independent finance website has suggested.

In a report released today by MoneyExpert.com, the average APR charged to customers who do not clear their balance after ... More

New Mortgages - NAEA: Hope for first-time buyers

Although consumers remain unsure of the market, figures have suggested a rise in house-viewing numbers before secured sales of property which show that first-time buyers (FTBs) have regained some confidence.

The National Association of Estate Agents (NAEA) has indicated that the FTB ... More

New Mortgages - Moneyfacts: Swap rates decline has helped consumers

The average two-year fixed-rate mortgage has returned to below seven per cent, a financial information website revealed today.

Research from Moneyfacts found that only ten days after the average two-year deal peaked at 7.08 per cent - its highest rate in over a decade - swap rates have ... More

Debt Consolidation - Retail spending drop 'could lead to recession'

The lack of consumer credit could lead to less spending which will in effect result in recession, a financial website has said today.

Fool.co.uk was responding to the Ernst & Young (E&Y) ITEM Club summer forecast, which was released today, predicting that the UK economy would ... More

Debt Consolidation - Debt has 'plenty of solutions'

People who are finding it hard to deal with high levels of personal debt have many options at their disposal, a finance website revealed.

Thinkmoney.com said that although the credit crisis had limited the availability of secured consolidation loans, many other choices were obtainable to ... More

Debt Consolidation - FSA called money guidance 'summit'

The Financial Services Authority (FSA) is hosting a conference to bring together all partner organisations to discuss and shape future plans of their service to provide free and fair money guidance in the UK.

A statement from the FSA has revealed that it hopes to provide stakeholders with... More

Debt Consolidation - CML: Gross lending declines in June

The decline in gross lending between the first and second-quarter was only a marginal one per cent, the Council of Mortgage Lenders (CML) has revealed.

The CML added that an increase is usually expected in spring and that the year-on-year decline had gathered pace in recent months, with ... More

Debt Consolidation - Most people 'debt-free by 47'

A survey has found that 47 is the "magic age" when the number of those out of credit card debt becomes larger than those in it, a money website has revealed.

Fool.co.uk found that this provides a contrast to the 28-year-old demographic, where the results peak at two-thirds of ... More

Credit Cards - Credit card rewards are 'absolutely worthwhile'

Credit card schemes are worthwhile for most consumers, a supermarket's finance subsidiary has said.

Recent research by Sainsbury's Bank found that over eight million people collected rewards from their credit cards during the last twelve months but only three million of them collected ... More

New Mortgages - CCCS: People must be prepared to budget

People must be "prepared to budget" if they want to keep up with repayments on their mortgage, an advice charity has said.

The Consumer Credit Counselling Service (CCCS) commented that the current economic climate is affecting people's ability to pay loans, this year culminating... More

New Mortgages - US problems will 'only indirectly affect' UK mortgage market

The problems encountered by American mortgage companies Freddie Mac and Fannie Mae will only have an "indirect effect" on the UK mortgage market, a financial advice site has revealed.

Although western economies are facing a recession, Your Mortgage believes that the British ... More

New Mortgages - CML suggests new approach for Treasury

The Council of Mortgage Lenders (CML) has suggested a way for the Treasury to address the funding problems in the mortgage market.

In its plan the CML recommends that the Bank of England offers a repo facility for secured lending as well as organising the sale of residential ... More

Credit Cards - Credit cards change because of crunch

A recent study has revealed that there has been a large increase in credit cards changing rates and charges since April.

Research conducted by Moneyfacts found that 19 credit cards had purchase rate increases, another 14 had cash rate rises and eight have made additional charges to their ... More

New Mortgages - Santander move 'should provide mortgage market stability'

Yesterday's move by Santander to buy out British lender Alliance & Leicester (A&L) is helpful to the British housing economy, said a professional mortgage intermediary today.

The Association of Mortgage Intermediaries (AMI) believes that although the consolidation of the market ... More

Debt Consolidation - Only quarter think saving is 'very important'

Only 26 per cent of people believe saving money is very important, a recent survey revealed.

The research by Nationwide Building Society found that the figure to be a sharp drop from May, where 49 per cent of those interviewed believed it was important to save.

Less than half of ... More

New Mortgages - Recession 'good for first-time buyers'

The threat of recession could be a good opportunity for people to get on the property ladder, a finance advice website has said.

Fool.co.uk made the comment after recent statistics from the British Chambers of Commerce, which last week outlined a serious risk of nationwide negative growth... More

Homeowner Loans - Secured loan market 'diminishing'

Many lenders are no longer finding secured loans a viable business option, according to new research by an independent financial information provider.

A survey by Moneyfacts.co.uk found that within the last year, eight lenders have withdrawn from the secured loan sector including Alliance... More

New Mortgages - Govt 'should reform stamp duty'

The Government has been asked to reform stamp duty to alleviate pressures on first-time buyers (FTBs) after the release of a report.

Halifax's house price index has prompted the National Association of Estate Agents (NAEA) to speak out over the amount of money FTBs require to pay out to ... More

New Mortgages - Mortgage lenders 'put pressure on Bank of England'

High street banks and mortgage lenders will lobby together against the Bank of England to develop the Special Liquidity Scheme (SLS) that the institution launched in April.

Chief executives from several banks hope that an extension of terms to the SLS will provide the banks with more ... More

Debt Consolidation - Bank of England leaves '31 million disappointed'

The Bank of England's decision to hold interest rates at five per cent will be a "huge disappointment" to 31 million people in the UK, a money website has said.

A survey by Fool.co.uk found that 65 per cent of consumers believed the economic situation was "worse than" ... More

Unsecured Loans - Bridging loans 'too risky for lenders and borrowers'

The current house price fall has made 100 per cent bridging loans unpopular with consumers and providers, a property advisor has said.

Savills Private Finance commented on the service, which is available to professional or even first-time buyers who want to buy an auction or repossessed ... More

New Mortgages - Interest rate hold 'will not help first-time buyers'

The decision to maintain the five per cent interest rate will not help first-time buyers, an online conveyancing firm has said.

Convex.net noted that the vote by the Monetary Policy Committee (MPC) to hold the rate will not help those attempting to get their foot on the property ladder ... More

New Mortgages - Long-term fixed mortgages 'soar'

Borrowers and lenders are seeking security in their mortgage deals to achieve stability, research suggests.

A survey by Spicerhaart Financial Services found consumers were securing long-term fixed-rate deals while providers were offering comparably lower rates for mortgages over five-year... More

New Mortgages - Calls for Bank of England to keep interest rates down

Two major organisations have called upon the Bank of England to keep base rates low in the face of "significant pressures" on the wider economy.

The National Association of Estate Agents (NAEA) said that with mortgage rates getting tighter and lending becoming more difficult, ... More

New Mortgages - Low-income home owning an 'impossibility'

The chance for low income couples to become home owners has been described as "almost impossible" by a property regulatory body.

After research from its monthly accessibility index, the Royal Institute of Chartered Surveyors (Rics) found that a first-time buyer couple earning ... More

Debt Consolidation - People must 'deal with debt now'

Consumers should deal with debt sooner rather than later, a debt management company recommended today.

In response to a recent speech by Bank of England governor Mervyn King, in which he highlighted a slowdown in the economy this year, Gregory Pennington advised consumers to prepare for ... More

Homeowner Loans - Barclays stops secured loans with FirstPlus

FirstPlus, part of Barclays, has decided to stop new lending as of August 9th.

Barclays cited "slowing demand" as the determining factor in its decision to close the subsidiary loans business fronted by Carol Vorderman, which was a market leader in secured ... More

New Mortgages - One fifth are 'worried about meeting mortgage payments'

Stricter regulation of sell and rent back property schemes is being demanded by an independent finance website.

The decision by Fool.co.uk comes after its research led it to discover that 20 per cent of homeowners worry that they may not be able to pay their mortgages over the next year, ... More

Unsecured Loans - Interest-only loans slide as lenders 'become more cautious'

Fewer applications for interest-only mortgages are being approved, analysis by a finance website shows.

After analysing trends in statistics from the Council of Mortgage Lenders (CML) which found that interest-only loan approval for house purchases was down by a third, mform.co.uk found ... More

Credit Cards - Credit cards 'reach boiling point'

British consumers have the potential to spend up to £253.5 billion on their credit cards, a price comparison website has revealed.

Moneysupermarket.com found through research that, although 28 per cent of people do not have a credit card, a further nine per cent - four million people... More

Debt Consolidation - Two more financial organisations agree with FSA plan

The response to new plans by the Financial Services Authority (FSA) to help those in debt has continued to be positive, with two more organisations congratulating the move.

The Council of Mortgage Lenders (CML) and the Association of Investment Companies (AIC) both praised the ... More

Debt Consolidation - Aegon welcomes FSA initiative

One of the world's leading insurance companies has praised the announcement of a new scheme from the Financial Services Authority (FSA).

The Pathfinder plan by the government comes after the recommendations of the Thoresen Review, a report published in March that pushed for a national and... More

New Mortgages - Fixed-rate mortgages 'still popular'

Medium-term fixed-rate mortgages are the biggest choice for consumers despite borrowing and interest rates hitting a 10 year high, say an online finance portal.

Research by Fairinvestment.co.uk found that 25 per cent of those questioned said that, regardless of a two-year deal hitting a ... More

New Mortgages - Mortgage rates 'continuing to rise'

Mortgage deals are costing more even though signs are pointing to the opposite, says a leading financial information service.

Moneyfacts.co.uk notes that as it is now three weeks since the peak in swap rates between banks and building societies, fixed rates would usually be expected to ... More

Credit Cards - Over 50s resort to credit cards

People in the over-50 age group are using credit cards more due to the credit crunch, the Post Office reveals.

The postal firm believes that the trend is due to rising inflation in the country, which it claims is forcing 47 per cent of such people to fund day-to-day living costs with ... More

New Mortgages - Thousands could 'face negative equity'

One in eight homeowners who took out a mortgage since the beginning of the year is in negative equity, a recent study shows.

In a report undertaken for the Daily Telegraph, research group CACI has analysed that of the 1.2 million people who have bought a home since January 2007, up to ... More

Debt Consolidation - FSA outlines finance management plan

The Finance Services Authority (FSA) has today announced a scheme to offer free advice and assistance to those who may be struggling with debt.

Alongside the government, the financial services regulator hopes that its new measures will help people stay educated, informed and more ... More

Unsecured Loans - Savings down as consumer loans soar

Consumer borrowing has gone up by £22.4 billion in the first quarter of 2008, an independent financial advice website has revealed.

Research conducted by Unbiased.co.uk shows loan amounts are up by £13 billion more than during the same period in 2007 - effectively increasing ... More

Unsecured Loans - More families look to personal loans to pay mortgages

Over four million households are turning to personal loans and credit cards to deal with rising costs, says a leading financial website.

Moneysupermarket.com said that those with mortgage and rent payments were struggling the most, indicating that long term debt is being solved with ... More

New Mortgages - Shrink in mortgage market 'to continue'

Availability of mortgage products may continue to fall, according to an economic expert.

Melanie Bien of Savills Private Finance, speaking to BBC Radio 4's Moneybox, said that anyone without a "very keen credit history" would find the search for mortgage deals more ... More

Unsecured Loans - Consumers need to be wary of bank account offers

Although a new type of current bank account is to be introduced that offers similar interest rates to saving accounts, a financial expert has warned consumers to be wary of them. ... More

Debt Consolidation - Interest rates are expected to stay the same

The Bank of England's (BoE's) Monetary Policy Committee (MPC) is likely to leave interest rates unchanged until the end of the year, one financial expert has claimed.

According to the Centre for Economics and Business Research (CEBR), interest rates are expected to fall to four per cent... More

Debt Consolidation - Brits worse off than they were five years ago

Consumers in the UK are now worse off than they were in 2003 due to the rising cost of living, according to new research.

Findings from a study by Ernst & Young revealed that after contributions to tax and payment of monthly household bills, the average family has under 20 per cent ... More

New Mortgages - First-time buyers to benefit from house market correction

First-time buyers will be the "major beneficiaries" of a correction in the housing market, according to one property expert.

According to Firstrung, a financial solutions company, the housing market is expected to correct itself within three years by 35 per cent meaning it ... More

Credit Cards - Up to 7% of people took out a personal loan in the past year

Rising costs in the property market have forced seven per cent of consumers to take out a personal loan, claims new research.

Findings from a study by moneysupermarket.com showed that ... More

New Mortgages - Economy is to continue to slow

The economy in the UK is expected to continue to slow during the next two years, according to new research.

Findings from a study by the Centre for Economics and Business Research (CEBR), said that it is due to grow by 1.7 per cent in 2008 and 1.3 per cent in 2009.

This year is... More

Debt Consolidation - People have less to spend each month, shows research

Consumers have up to £10 less to spend as disposable income every month, according to new research.

Findings from a study by Chiltern showed that it is taking consumers an additional three months for them to pay off their debts compared with August 2007.

Those in debt can ... More

Credit Cards - 'Credit unions will need to demonstrate their stability'

Credit unions will need to show they are financially stable if the government's recommendations on providing credit are to succeed, one financial expert has claimed.

Moneysupermarket.com said that the government's proposal to use credit unions to supply More

Debt Consolidation - Over £13,000 needed to afford basic living standards

A single person living in Britain needs to earn £13,400 before tax to afford a basic standard of living, according to new research.

Findings from a study by the Joseph Rowntree Foundation revealed that a single person without a child needs to spend £158 a week.

A ... More

Credit Cards - Lenders could "do a bit more" to find out an applicants income

Credit card lenders could "do a bit more" to find out what an applicant earns per year, according to one financial expert.

Thomas Charles, a debt consultancy firm, said that part of the ... More

New Mortgages - Fixed-rate mortgage deals come to an end

Up to £30 billion worth of cheap fixed-rate mortgage deals are coming to an end this month with more than half of these mortgage holders yet to look for a new deal, according to new research.

Findings from financial comparison website moneysupermarket.com showed that one in six have... More

Unsecured Loans - Government to make low-cost loans available

The government has announced it is to make loans more easily available to those on a low-income by relaxing rules around credit unions.

According to the Treasury, the restrictions surrounding ... More

Debt Consolidation - Consumers fail to review finances despite credit crunch

Consumers are failing to review their finances despite the effects of the credit crunch, new research has shown.

Findings from a survey by life insurance company Zurich revealed that less than a third of... More

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