All Things Finance
Base rate cuts may not lead to mortgage savings
Posted 2008-01-5
Cuts to the base rate of interest may not lead to lower repayments for mortgage holders. Speaking after the Monetary Policy Committee’s (MPC) decision to hold the base rate in January, Motley Fool’s David Kuo said: “The link between the MPC’s decisions and mortgage payments is by no means certain.” Despite Chancellor Alistair Darling urging mortgage lenders to pass the December cut on to consumers, there is no obligation for them to do so. Following the credit crunch, the main aim for many financial services organisations is to stabilise their business. On this, David Kho added: “Many homeowners are unlikely to reap the benefits, even though there are indications that the Bank of England may continue to cut interest rates to stimulate the flagging British economy.” ...
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More individuals set to declare bankruptcy.
Posted 2008-01-4
Experts predict that personal insolvencies are set to increase this year. KPMG forecast a 30% rise in the number of personal insolvencies in 2008. Remarking on the wide reporting of rising debt, James Falla, director of advice service Thomas Charles said: “Predictions of an increase in the number of people declaring themselves insolvent are likely to prove correct as 2008 progresses. However, it should be acknowledged that personal insolvency can be either bankruptcy, individual voluntary arrangements (IVA) or informal debt management plans.” While the amount of bankruptcy and IVAs can be accounted for, there is no formal way to measure the levels of debt management plans undertaken. Price comparison website uSwitch recently suggested debt consolidation as a solution for consumers looking to pay off their debts this year. ...
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Self cert mortgages unharmed by credit crunch
Posted 2008-01-3
The availability of self-cert mortgages has been largely unchanged by the credit crunch, despite the wide reporting of tightening lending conditions in the mortgage market. The credit crunch has affected the sub-prime sector and non-conforming lenders, with mainstream lenders mainly unaffected. Andy Pratt of mortgage brokers Alexander Hall stated that borrowers with good credit records should have few problems being approved for a loan: “All those clients who would have been able to get them even with the credit crunch.” According to the Economic and Social Research Council 13% of Britain’s 29million workforce are self employed and therefore eligible for a self-cert mortgage. ...
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Credit providers become more prudent
Posted 2008-01-3
Research shows that UK families are failing to control their spending. A report by uSwitch, accredited by the Financial Services Authority, found that a quarter of 16 to 44 year olds are worried about bills in the New Year and...
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Bank’s decision could cost mortgage holders
Posted 2008-01-2
The Bank of England decided to hold base rates in January 2008, a decision that could prove more expensive for mortgage owners. Many industry experts believed a base rate cut to be justifiable this month, moreover, due to negative economic statistics most expected a rate cut. John Charcol’s Ray Boulger said: “Homeowners could find themselves paying £105 more in interest than they would if a 0.25% cut had been implemented.” Inflationary pressures such as Npower’s 17% price increase could prove financially difficult for Britons. However, inflation is under control with the consumer price index inflation just above the 2%, with the global economic slowdown likely to bring it down further. With regards to further rate cuts, Boulger added: “If the monetary policy committee delays the next cut too long, Bank rate may have to fall further than would have been the case with an earlier cut.” ...
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Bankruptcy levels reach record high
Posted 2008-01-2
KPMG estimate that a record 130,000 Britons will file for bankruptcy in 2008, an increase of more than 20,000 compared to 2007. Huge festive period overspending, rising mortgage payments and high credit bills are believed to be the main factors...
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2008 – Time for a new credit card
Posted 2008-01-1
According to new research by MoneyExpert.com 2.6 million Britons will switch credit cards in 2008. 7% of all customers will switch cards, with consumers being urged to take advantage of interest free periods to pay off their debts. Egg and...
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Dog owners should prepare for costs
Posted 2008-01-1
Dogs are expensive and a financial commitment owners should be prepared for. Tesco Pet Insurance believe that 5.2million dog owners need to better manage their finances in order to handle the cost of their dogs. According to the insurance provider just 12% of owners insure their dogs against potentially large vet bills. This is despite 38% of pet owners polled by Mintel stating that they felt they could not afford veterinary treatment for their animal. Allan Burn of Tesco Pet Insurance said: “The price for treating an uninsured dog can be hefty, with the incidence of such lack of preparation saddening.” Tesco Pet Insurance is offering discounts of 20% to customers who buy online and 10% to those who buy over the phone. According to the company this will help those pet owners who believe veterinary bills may be beyond their means. ...
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Northern Ireland house market cooling
Posted 2007-12-29
Towards the end of 2007, Northern Ireland had the fastest growing rate of house prices in the UK at 24.2% or £150 per day on average. Following a year of huge growth, the Northern Ireland housing market is starting to cool, according to the Royal Institute of Chartered Surveyors (RICS) in Northern Ireland. Sales will increase in 2008, however house sellers will have to be more realistic with asking prices. Tom McClelland, housing spokesperson for the said: “The market changed considerably during the course of 2007 and the new reality is a market where agents have to work harder to achieve sales and sellers have to be more realistic about asking prices” The cooling of the market could help first time buyers, as according to McClelland there is: “Less competition for properties in the sector of the market within the first time buyer’s range.” ...
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Mortgages repayments prove a struggle for one million families
Posted 2007-12-18
A survey published by the Bank of England shows that nearly one million families are struggling to keep up with mortgages repayments with 1.8million people saying they have problems “at least occasionally”. Figures show that rising interest rates have increased...
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