Wednesday, February 03, 2010
Money is the root of all evil for Britons
Money may make the world go round but money is also the nation's biggest worry.
More than eight out of 10 people said they are experiencing some kind of worry, consumer analysts Mintel found.
And one in five admit to turning to drink when stressed, while more than one in 10 light up a cigarette, the survey of 2,000 people found.
The top five concerns were money (40 per cent), problems with friends and family members (25 per cent), health (24 per cent), stress at work (22 per cent) and job security (21 per cent).
And the top five ways of dealing with stress were socialising with friends and family (54 per cent), listening to music or reading a book (40 per cent), exercise (33 per cent), talking to people about how they feel (32 per cent) and spending one-on-one time with a partner (22 per cent).
'The fact that over half of us turns to our family and friends in times of trouble, compared to just 6 per cent who go to a professional, highlights the extent of the stigma attached to seeking professional help to deal with stress.
More than eight out of 10 people said they are experiencing some kind of worry, consumer analysts Mintel found.
And one in five admit to turning to drink when stressed, while more than one in 10 light up a cigarette, the survey of 2,000 people found.
The top five concerns were money (40 per cent), problems with friends and family members (25 per cent), health (24 per cent), stress at work (22 per cent) and job security (21 per cent).
And the top five ways of dealing with stress were socialising with friends and family (54 per cent), listening to music or reading a book (40 per cent), exercise (33 per cent), talking to people about how they feel (32 per cent) and spending one-on-one time with a partner (22 per cent).
'The fact that over half of us turns to our family and friends in times of trouble, compared to just 6 per cent who go to a professional, highlights the extent of the stigma attached to seeking professional help to deal with stress.
While one in four men turn to drink in times of worry, less than one in five women drown their sorrows in alcohol.
But women are more likely to turn to comfort foods than men.
And on the whole, it is the fairer sex that is likely to be more stressed out, with more than one in 10 saying they had five or more worries, compared to just one in 14 men.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: credit crunch, home loans, Loan calculator, loans, sub, uk recession
# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:09 PM 0 comments
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Tuesday, February 02, 2010
Demand for UK credit increases again
New borrowing on credit cards, loans and overdrafts has outstripped the amount being paid back by UK consumers for the first time since June last year.
Unsecured consumer credit rose £52m in December, driven by credit card borrowing, the Bank of England said.
The number of mortgages approved for house purchases dipped slightly compared with November, to 59,023.
This was still higher than the average of the past six months, when the housing and mortgage markets picked up.
The trend during the downturn has been for consumers to pay off debts, often instead of saving when interest rates are so low.
For five consecutive months, repayments outstripped new unsecured consumer credit. However, in December, the trend reversed, the Bank of England's figures show.
This was primarily the result of borrowing on credit cards, which rose by £195m. Demand for personal loans and overdrafts remained low, with repayments outstripping new borrowing by £143m.
Total net lending to individuals rose by £1.2bn in December, double the average of the previous six months. The vast majority of lending is in the form of mortgages.
The number of people remortgaging rose slightly - to 27,276. This was still a traditionally low level as people chose to benefit from low interest rates by staying on their mortgage provider's variable rate when their fixed-rate deal came to an end.
The Bank rate is widely expected to remain at record lows for some months.
Unsecured consumer credit rose £52m in December, driven by credit card borrowing, the Bank of England said.
The number of mortgages approved for house purchases dipped slightly compared with November, to 59,023.
This was still higher than the average of the past six months, when the housing and mortgage markets picked up.
The trend during the downturn has been for consumers to pay off debts, often instead of saving when interest rates are so low.
For five consecutive months, repayments outstripped new unsecured consumer credit. However, in December, the trend reversed, the Bank of England's figures show.
This was primarily the result of borrowing on credit cards, which rose by £195m. Demand for personal loans and overdrafts remained low, with repayments outstripping new borrowing by £143m.
Total net lending to individuals rose by £1.2bn in December, double the average of the previous six months. The vast majority of lending is in the form of mortgages.
The number of people remortgaging rose slightly - to 27,276. This was still a traditionally low level as people chose to benefit from low interest rates by staying on their mortgage provider's variable rate when their fixed-rate deal came to an end.
The Bank rate is widely expected to remain at record lows for some months.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Bank of England, credit crunch, home loans, Loan calculator, loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 10:09 AM 0 comments
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Monday, February 01, 2010
UK loans interest rates hit a 9 year peak
UK bank personal loan rates have climbed to a nine year high because of a rise in bad debts as borrowers fail to meet their loans repayments.
Experts said banks are increasing rates to recoup the losses stemming from defaults on loans.
Rising unemployment during the recession saw households struggling to meet the repayments on their debt.
The best rate currently available on a three year loan of £5,000 is almost 9 per cent – or nearly £160 – a month, according to personal finance website Moneyfacts.
It is in sharp contrast to rates of almost half that amount before the beginning of the credit crisis in 2007.
The rise comes despite the Bank of England keeping interest rates at a historic low of 0.5 per cent for the past year.
Rates were last at their current level nine years ago when the Bank Rate was a much higher 6 per cent, meaning banks have significantly increased their profit margins on personal loans.
The average rate today on a personal loan is even higher at 12.4 per cent.
Experts said banks are increasing rates to recoup the losses stemming from defaults on loans.
Rising unemployment during the recession saw households struggling to meet the repayments on their debt.
The best rate currently available on a three year loan of £5,000 is almost 9 per cent – or nearly £160 – a month, according to personal finance website Moneyfacts.
It is in sharp contrast to rates of almost half that amount before the beginning of the credit crisis in 2007.
The rise comes despite the Bank of England keeping interest rates at a historic low of 0.5 per cent for the past year.
Rates were last at their current level nine years ago when the Bank Rate was a much higher 6 per cent, meaning banks have significantly increased their profit margins on personal loans.
The average rate today on a personal loan is even higher at 12.4 per cent.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: credit crunch, loans, sub prime loans, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 10:03 AM 0 comments
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Friday, January 29, 2010
Britain may be out of recession at last – but are you?
While the UK’s output of goods and services grew in the final quarter of 2009, according to the latest official statistics, many people are wondering whether their own finances are actually in any better shape.
Recovery can bring its own problems; for a start, rising demand tends to stoke inflation, which could prompt the Bank of England to raise interest rates – good news for savers, but not something that hard-pressed home owners would welcome.
So what are the prospects for our personal finances as the economic recovery takes hold?
With Britain borrowing record amounts of money, many expect public spending cuts or tax rises – or both – as the Government attempts to balance the books. Income tax could have to rise by as much as 5p in the Pound.
Commentators are divided on the likelihood that interest rates will rise from their current unprecedented lows. Official rates were unlikely to rise this year because a tough post-election Budget would equate to a significant interest rate rise.
But you don’t need the Bank of England to put up official rates for mortgage costs to rise. Lenders are by and large able to change their standard variable rates at will, while Skipton Building Society recently abandoned a pledge to keep its SVR within three percentage points of Bank Rate.
Higher interest rates might seem like good news for savers, who would finally see better returns on their money. But if inflation rose faster than interest rates, pensioners’ and savers’ incomes would not keep up with increasing household bills. Rising rates also means higher mortgage rates, which will put further pressure on many households’ incomes.
Recovery can bring its own problems; for a start, rising demand tends to stoke inflation, which could prompt the Bank of England to raise interest rates – good news for savers, but not something that hard-pressed home owners would welcome.
So what are the prospects for our personal finances as the economic recovery takes hold?
With Britain borrowing record amounts of money, many expect public spending cuts or tax rises – or both – as the Government attempts to balance the books. Income tax could have to rise by as much as 5p in the Pound.
Commentators are divided on the likelihood that interest rates will rise from their current unprecedented lows. Official rates were unlikely to rise this year because a tough post-election Budget would equate to a significant interest rate rise.
But you don’t need the Bank of England to put up official rates for mortgage costs to rise. Lenders are by and large able to change their standard variable rates at will, while Skipton Building Society recently abandoned a pledge to keep its SVR within three percentage points of Bank Rate.
Higher interest rates might seem like good news for savers, who would finally see better returns on their money. But if inflation rose faster than interest rates, pensioners’ and savers’ incomes would not keep up with increasing household bills. Rising rates also means higher mortgage rates, which will put further pressure on many households’ incomes.
While you would expect the end of a recession to be good news for the stock market, it’s worth bearing in mind that markets generally look ahead, so much of the good news will already be “in the price”. So instead of simply expecting the FTSE100 to soar, investors may have to be selective if they want to profit, experts say
An immediate improvement in employment prospects is unlikely, experts say. Jobs will remain hard to find, with employers likely to remain nervous about hiring when the economic recovery is still sluggish. In fact, we expect unemployment to start rising again and it could even reach 3m.
Even if employment holds up, that is only likely to be because firms are controlling costs by cutting or freezing pay instead. For many people, it will still feel very much like a recession.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, credit crunch, home loans, sub prime loans, UK loans rates, uk recession
# posted by Dr Search- Principal Consultant at the Search Clinic @ 9:55 AM 0 comments
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Thursday, January 28, 2010
Office of Fair Trading (OFT) offers debt case guidance
Lenders and borrowers have been issued with draft guidance about when their loans may, or may not be enforced by the OFT.
The Office of Fair Trading (OFT) said it was worried that some debtors were being misled about their ability to get their debts written off.
Thousands of claims have been launched in the past couple of years, against lenders, by borrowers trying to avoid repaying their debts.
The draft guidance focuses on the rules laid down by the Consumer Credit Act.
The OFT's guidance draws on recent rulings by Judge Waksman at the High Court in Manchester.
He confirmed that it was acceptable for lenders to produce reconstituted copies of original loan agreements, for the purposes of providing the borrower with information about their loan.
The OFT said: "Some debtors are being misled into thinking that these sections [of the Consumer Credit Act] can be used to get their debts written off and that some creditors are not following legal obligations to provide information to customers.
"The lender is allowed to provide a reconstituted agreement, as long as that version is accurate and contains all the original information apart from the few exceptions that the law allows (which include the signature, signature box and date of signature)."
The authorities have been worried that some claims management companies have been drumming up business by exaggerating the chance of clients getting their debts cancelled.
The Office of Fair Trading (OFT) said it was worried that some debtors were being misled about their ability to get their debts written off.
Thousands of claims have been launched in the past couple of years, against lenders, by borrowers trying to avoid repaying their debts.
The draft guidance focuses on the rules laid down by the Consumer Credit Act.
The OFT's guidance draws on recent rulings by Judge Waksman at the High Court in Manchester.
He confirmed that it was acceptable for lenders to produce reconstituted copies of original loan agreements, for the purposes of providing the borrower with information about their loan.
The OFT said: "Some debtors are being misled into thinking that these sections [of the Consumer Credit Act] can be used to get their debts written off and that some creditors are not following legal obligations to provide information to customers.
"The lender is allowed to provide a reconstituted agreement, as long as that version is accurate and contains all the original information apart from the few exceptions that the law allows (which include the signature, signature box and date of signature)."
The authorities have been worried that some claims management companies have been drumming up business by exaggerating the chance of clients getting their debts cancelled.
Claimants have typically sought to achieve this by challenging their lenders to meet the strict requirements of the Consumer Credit Act.
One of these is that lenders have to produce a "true copy" of the loan agreement within 12 days of being asked.
If a legible true copy cannot be produced then the loan is temporarily unenforceable, by way of a county court judgement, until such time as a copy can be found.
Some claims management companies have argued that the debts are permanently unenforceable in these circumstances.
One of these is that lenders have to produce a "true copy" of the loan agreement within 12 days of being asked.
If a legible true copy cannot be produced then the loan is temporarily unenforceable, by way of a county court judgement, until such time as a copy can be found.
Some claims management companies have argued that the debts are permanently unenforceable in these circumstances.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: credit crunch, home loans, loans, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 9:50 AM 0 comments
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Tuesday, January 26, 2010
UK mortgage approvals on the rise
The number of UK mortgages approved for house purchases rose at the end of 2009.
But overall, mortgage approvals in 2009 were 27% lower than the previous year and the lowest since British Bankers' Association records started in 1997.
Some 45,897 home loans were approved for house purchases last month.
This showed the extent of the recent recovery in the mortgage market as it was double that of December 2008.
Gross mortgage lending by the High Street banks rose from £9.6bn in November to £10.2bn in December.
This was also 12.5% higher than December 2008, and was boosted - according to the British Bankers' Association (BBA) - by borrowers bringing loans forward before the stamp duty holiday came to an end.
The temporary stamp duty holiday on properties worth between £125,000 and £175,000 ended on 1 January 2010. It means buyers will again have to pay 1% tax on the value of homes worth more than £125,000.
According to the BBA, the level of those remortgaging remained low in December - at 23,480 - as people continued to choose to move to their lender's standard variable rate (SVR), rather than move to a new fixed-rate deal when their term came to an end.
But overall, mortgage approvals in 2009 were 27% lower than the previous year and the lowest since British Bankers' Association records started in 1997.
Some 45,897 home loans were approved for house purchases last month.
This showed the extent of the recent recovery in the mortgage market as it was double that of December 2008.
Gross mortgage lending by the High Street banks rose from £9.6bn in November to £10.2bn in December.
This was also 12.5% higher than December 2008, and was boosted - according to the British Bankers' Association (BBA) - by borrowers bringing loans forward before the stamp duty holiday came to an end.
The temporary stamp duty holiday on properties worth between £125,000 and £175,000 ended on 1 January 2010. It means buyers will again have to pay 1% tax on the value of homes worth more than £125,000.
According to the BBA, the level of those remortgaging remained low in December - at 23,480 - as people continued to choose to move to their lender's standard variable rate (SVR), rather than move to a new fixed-rate deal when their term came to an end.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: home loans, mortgage calculator
# posted by Dr Search- Principal Consultant at the Search Clinic @ 9:47 AM 0 comments
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Monday, January 25, 2010
Concern over pre paid card costs
People in some of the poorest parts of the country are having benefits paid onto pre paid cards, but many are not aware of the costs involved.
An internal e-mail from the Department for Work and Pensions expresses concern at the lack of customer awareness.
One benefit office has received requests to pay benefits for almost 100 people directly onto these pre-paid cards, which incur charges.
The card providers say the cards promote financial inclusion.
However when staff at the Clyde and Fife Benefits Delivery Centre contacted customers before processing the requests, they found that the majority of customers were not aware of the charges.
One of the companies mentioned in the e-mail sent 46 applications to the benefit office requesting benefits to be paid on to a GO: Card.
The forms were accompanied by a letter from Go Money Solutions sales director, Steve Tobin. In the letter Mr Tobin says the forms were obtained "through face to face marketing" in the local area.
The DWP confirmed it had raised concerns with Go Money Solutions and it had subsequently revised its sales practices.
Minister Helen Goodman told Radio 4's Money Box: "Considering the charges that are associated with these cards, it is very unlikely that they are suitable for our customers.
"We certainly don't endorse them. There are much better options available for having your benefit/pension paid, such as the Post Office card account, a basic bank account or current account."
Online shopping
But Mr Tobin says the GO: Card offers much more in terms of financial inclusion, flexibility and convenience:
"We offer our customers the chance to take part in fully utilising the internet's many advantages in purchasing goods and services at considerably discounted prices and convenience. We do not charge for this facility."
While most banks offer basic banking facilities to all customers, many will not offer a debit card to people with a bad credit history. A pre-paid credit card is currently the only way those customers can shop online.
A GO: Card costs £10 to buy and a £7.50 annual management fee is charged after the first month. It costs a minimum of £1.25 and a maximum of £2.50 to have each benefit loaded on to the card and the same charges apply for each cash withdrawal.
An internal e-mail from the Department for Work and Pensions expresses concern at the lack of customer awareness.
One benefit office has received requests to pay benefits for almost 100 people directly onto these pre-paid cards, which incur charges.
The card providers say the cards promote financial inclusion.
However when staff at the Clyde and Fife Benefits Delivery Centre contacted customers before processing the requests, they found that the majority of customers were not aware of the charges.
One of the companies mentioned in the e-mail sent 46 applications to the benefit office requesting benefits to be paid on to a GO: Card.
The forms were accompanied by a letter from Go Money Solutions sales director, Steve Tobin. In the letter Mr Tobin says the forms were obtained "through face to face marketing" in the local area.
The DWP confirmed it had raised concerns with Go Money Solutions and it had subsequently revised its sales practices.
Minister Helen Goodman told Radio 4's Money Box: "Considering the charges that are associated with these cards, it is very unlikely that they are suitable for our customers.
"We certainly don't endorse them. There are much better options available for having your benefit/pension paid, such as the Post Office card account, a basic bank account or current account."
Online shopping
But Mr Tobin says the GO: Card offers much more in terms of financial inclusion, flexibility and convenience:
"We offer our customers the chance to take part in fully utilising the internet's many advantages in purchasing goods and services at considerably discounted prices and convenience. We do not charge for this facility."
While most banks offer basic banking facilities to all customers, many will not offer a debit card to people with a bad credit history. A pre-paid credit card is currently the only way those customers can shop online.
A GO: Card costs £10 to buy and a £7.50 annual management fee is charged after the first month. It costs a minimum of £1.25 and a maximum of £2.50 to have each benefit loaded on to the card and the same charges apply for each cash withdrawal.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: credit crunch, home loans, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 9:39 AM 0 comments
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Thursday, January 21, 2010
UK debit card spending to overtake cash spending in 2010
UK debit card spending will overtake spending with cash as a method of payment this year.
Debit card transactions rose by 10 per cent last year, according to Visa Europe, which is owned by the banks for which it processes payments.
It means that 77 per cent of its business was now done with debit cards, rather than credit cards, the use of which stalled over the past year.
Total card spending at “points of sale” was up 3.7 per cent to £746 billion, Visa Europe said. The busiest day for spending was December 23, when consumers performed more than 20 million transactions and spent more than £1 billion – up 28 per cent on the same day in 2008.
The recession has meant that consumers are increasingly using debit cards to pay for purchases, rather than build up debt on credit cards, Visa said.
At the same time consumers have been reluctant to pay booking fees for payment with a credit card. Retailers are barred from making such charges on debit card transactions, but justify the credit card levies on the grounds that they are passing on so-called interchange fees charged by banks.
Internet shopping has also accelerated the rise of debit card use, with a quarter of all Visa spending in the UK conducted online over the Christmas period and 20 per cent for the year as a whole.
Debit card transactions rose by 10 per cent last year, according to Visa Europe, which is owned by the banks for which it processes payments.
It means that 77 per cent of its business was now done with debit cards, rather than credit cards, the use of which stalled over the past year.
Total card spending at “points of sale” was up 3.7 per cent to £746 billion, Visa Europe said. The busiest day for spending was December 23, when consumers performed more than 20 million transactions and spent more than £1 billion – up 28 per cent on the same day in 2008.
The recession has meant that consumers are increasingly using debit cards to pay for purchases, rather than build up debt on credit cards, Visa said.
At the same time consumers have been reluctant to pay booking fees for payment with a credit card. Retailers are barred from making such charges on debit card transactions, but justify the credit card levies on the grounds that they are passing on so-called interchange fees charged by banks.
Internet shopping has also accelerated the rise of debit card use, with a quarter of all Visa spending in the UK conducted online over the Christmas period and 20 per cent for the year as a whole.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, credit crunch
# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:21 PM 0 comments
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Wednesday, January 20, 2010
Debit card users could have same protection as UK credit cards
UK Consumers who buy goods and services with a debit card could be offered the same protection as those who use a credit card.
Some shoppers are losing out on hundreds of pounds each year because they have been caught out by unscrupulous internet retailers, companies going bust or just plain poor service.
Consumer Focus, the Government's consumer watchdog, said these shoppers could avoid being out of pocket if they used credit cards, but many shoppers do not like buying goods on credit. And the only way to pay for goods bought over the internet, if you do not like using credit cards, is with a debit card.
The Government has now hinted that it might tighten the rules to give greater protection to those shoppers that use debit cards, as part of a shake-up of the card industry.
The Government is reviewing the industry and Tuesday 19 January was the deadline for parties to submit their ideas of how to improve credit cards. Any changes accepted by the Government are likely to be announced next month.
A spokesman for the Department for Business, Innovation and Skills said: "We are aware consumers have concerns about their rights when using different types of cards. That is why we are looking at this issue very carefully and will be announcing our views in the New Year."
Any change would be a major victory for consumers.
According to Consumer Focus, over the last year, one in ten consumers has been failed to get something they had paid for in advance – with less than half of the people not getting their money back. Those that have been ripped off have been out of pocket to the tune of £242, on average.
Under the 1976 Consumer Credit Act, the credit card company is jointly responsible – along with the retailer – for the quality of goods and services. This means anything between £100 to £30,000 will be covered by the credit card company if it arrives faulty or fails to arrive.
However, people buying goods on debit cards enjoy none of these rights and are left in a particularly weak position if an internet retailer goes bust.
Banks argue that it would be very expensive to offer consumers the same rights with debit cards. Credit card providers can only afford to cover the value of faulty goods up to £30,000 because they charge customers a large annual percentage rate. Debit cards are free in the great majority of cases.
Some shoppers are losing out on hundreds of pounds each year because they have been caught out by unscrupulous internet retailers, companies going bust or just plain poor service.
Consumer Focus, the Government's consumer watchdog, said these shoppers could avoid being out of pocket if they used credit cards, but many shoppers do not like buying goods on credit. And the only way to pay for goods bought over the internet, if you do not like using credit cards, is with a debit card.
The Government has now hinted that it might tighten the rules to give greater protection to those shoppers that use debit cards, as part of a shake-up of the card industry.
The Government is reviewing the industry and Tuesday 19 January was the deadline for parties to submit their ideas of how to improve credit cards. Any changes accepted by the Government are likely to be announced next month.
A spokesman for the Department for Business, Innovation and Skills said: "We are aware consumers have concerns about their rights when using different types of cards. That is why we are looking at this issue very carefully and will be announcing our views in the New Year."
Any change would be a major victory for consumers.
According to Consumer Focus, over the last year, one in ten consumers has been failed to get something they had paid for in advance – with less than half of the people not getting their money back. Those that have been ripped off have been out of pocket to the tune of £242, on average.
Under the 1976 Consumer Credit Act, the credit card company is jointly responsible – along with the retailer – for the quality of goods and services. This means anything between £100 to £30,000 will be covered by the credit card company if it arrives faulty or fails to arrive.
However, people buying goods on debit cards enjoy none of these rights and are left in a particularly weak position if an internet retailer goes bust.
Banks argue that it would be very expensive to offer consumers the same rights with debit cards. Credit card providers can only afford to cover the value of faulty goods up to £30,000 because they charge customers a large annual percentage rate. Debit cards are free in the great majority of cases.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: credit crunch, Loan calculator, loans, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:03 PM 0 comments
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Tuesday, January 19, 2010
Credit card lenders battle new lending rules
UK credit card lenders are attempting to dilute plans to curb lenders' activities.
Government proposals include stopping card firms changing interest rates on existing debts and ensuring the most expensive debts are paid off first.
But now a trade body, the UK Cards Association, has claimed that the changes would push more people into financial difficulty.
There are 30 million UK credit card customers holding 66 million cards.
The industry said that 62% of all UK adults had at least one credit card, but borrowing on these cards had been in "gentle decline" since 2005.
Despite greater caution from lenders about who gets a card, the government is keen to outlaw certain practices that it regarded as unfair and has challenged the industry to "clean up its act".
It invited responses to proposals, published in October, which included:
* changing the order of priority for credit card repayments, so that the most expensive debts, such as cash advances, are paid off first
* increasing the minimum amount that must be paid off each month to accelerate the overall rate of repayment
* banning the practice of raising borrowers' credit limits without their consent
* restricting or banning increases in interest rates on debts already incurred.
The plans follow other limits on credit card practices brought in during 2009, aimed at bringing more transparency for customers.
But the latest proposals have brought a strident response from the industry, which claimed in a 230-page report that customers would not benefit from some of the planned changes.
"These options would reduce competition within the industry," said Melanie Johnson, a former Labour MP who chairs the UK Cards Association.
"They would also have far reaching consequences for customers and lenders alike and would change the basic 'deal' offered by lenders to their customers and lead to increased financial difficulties for many and to more defaults."
Government proposals include stopping card firms changing interest rates on existing debts and ensuring the most expensive debts are paid off first.
But now a trade body, the UK Cards Association, has claimed that the changes would push more people into financial difficulty.
There are 30 million UK credit card customers holding 66 million cards.
The industry said that 62% of all UK adults had at least one credit card, but borrowing on these cards had been in "gentle decline" since 2005.
Despite greater caution from lenders about who gets a card, the government is keen to outlaw certain practices that it regarded as unfair and has challenged the industry to "clean up its act".
It invited responses to proposals, published in October, which included:
* changing the order of priority for credit card repayments, so that the most expensive debts, such as cash advances, are paid off first
* increasing the minimum amount that must be paid off each month to accelerate the overall rate of repayment
* banning the practice of raising borrowers' credit limits without their consent
* restricting or banning increases in interest rates on debts already incurred.
The plans follow other limits on credit card practices brought in during 2009, aimed at bringing more transparency for customers.
But the latest proposals have brought a strident response from the industry, which claimed in a 230-page report that customers would not benefit from some of the planned changes.
"These options would reduce competition within the industry," said Melanie Johnson, a former Labour MP who chairs the UK Cards Association.
"They would also have far reaching consequences for customers and lenders alike and would change the basic 'deal' offered by lenders to their customers and lead to increased financial difficulties for many and to more defaults."
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, credit crunch, Loan calculator, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:28 PM 0 comments
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Monday, January 18, 2010
How to cut your credit card debts
Paying off any credit card debts should be your top financial priority for 2010.
If you've got a lot of debt sitting on your credit card following Christmas, and it's racking up a lot of interest, the first step you should take is to transfer that debt onto a 0% balance transfer credit card.
The top card to use at the moment is the Virgin Credit Card, which offers an interest free period on all balance transfers for 16 months. So this means you've got 16 months to start making progress tackling your debt without worrying about paying interest.
It's a good idea to set up a monthly standing order for your minimum monthly repayment to make sure you don't forget to make a payment each month. If you do, you could be charged a fee, lose your 0% deal, and possible get a black mark on your credit record.
Get budgeting
If you're struggling to pay off your debt, the most obvious way to tackle it is to throw as much money towards it as possible.
But if you're feeling a little strapped for cash, this might seem slightly daunting. So a good idea is to sit down and draw up a budget. To do this, work out exactly what your monthly outgoings and earnings are by using a statement of affairs calculator.
If you can't manage to get all of your credit card debts onto interest-free deals, you need to adopt the method of 'snowballing'.
To do this, simply work out which of your credit card debts is charging the most interest - this is the debt that will grow at the fastest rate, so it's the one you need to concentrate on.
Keep paying the minimum monthly payments on all of your borrowings, but put any spare cash towards your most expensive debt. Once you've paid off this debt, put the extra money towards the next most expensive debt, and so on. Leave your interest-free debt until last.
As I mentioned earlier, it's important to remember to pay the minimum monthly repayment (MMR) on your credit card each month. However, minimum monthly repayments are usually set at a ridiculously low level - often as low as 2% of your total card debt.
This means it will take you a long time to pay off your balance - typically more than 15 years on £1,000 of debt. This also means your debt becomes much more expensive, as you'll be paying a lot of interest over that period.
So it's a good idea to set up a direct debit and pay a fixed amount on top of the minimum monthly repayment each month. That way you will pay off the debt far quicker and you won't have to pay as much in interest. You can find more about minimum monthly repayments in The dangers of minimum payments.
If you've got a lot of debt sitting on your credit card following Christmas, and it's racking up a lot of interest, the first step you should take is to transfer that debt onto a 0% balance transfer credit card.
The top card to use at the moment is the Virgin Credit Card, which offers an interest free period on all balance transfers for 16 months. So this means you've got 16 months to start making progress tackling your debt without worrying about paying interest.
It's a good idea to set up a monthly standing order for your minimum monthly repayment to make sure you don't forget to make a payment each month. If you do, you could be charged a fee, lose your 0% deal, and possible get a black mark on your credit record.
Get budgeting
If you're struggling to pay off your debt, the most obvious way to tackle it is to throw as much money towards it as possible.
But if you're feeling a little strapped for cash, this might seem slightly daunting. So a good idea is to sit down and draw up a budget. To do this, work out exactly what your monthly outgoings and earnings are by using a statement of affairs calculator.
If you can't manage to get all of your credit card debts onto interest-free deals, you need to adopt the method of 'snowballing'.
To do this, simply work out which of your credit card debts is charging the most interest - this is the debt that will grow at the fastest rate, so it's the one you need to concentrate on.
Keep paying the minimum monthly payments on all of your borrowings, but put any spare cash towards your most expensive debt. Once you've paid off this debt, put the extra money towards the next most expensive debt, and so on. Leave your interest-free debt until last.
As I mentioned earlier, it's important to remember to pay the minimum monthly repayment (MMR) on your credit card each month. However, minimum monthly repayments are usually set at a ridiculously low level - often as low as 2% of your total card debt.
This means it will take you a long time to pay off your balance - typically more than 15 years on £1,000 of debt. This also means your debt becomes much more expensive, as you'll be paying a lot of interest over that period.
So it's a good idea to set up a direct debit and pay a fixed amount on top of the minimum monthly repayment each month. That way you will pay off the debt far quicker and you won't have to pay as much in interest. You can find more about minimum monthly repayments in The dangers of minimum payments.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, credit crunch, home loans, Loan calculator, uk recession
# posted by Dr Search- Principal Consultant at the Search Clinic @ 7:52 PM 0 comments
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Friday, January 15, 2010
Illegal UK loans sharks profit from Christmas
Some of the UK's poorest people are starting 2010 in severe debt after borrowing from loans sharks to pay for Christmas.
The Financial Inclusion Centre said 100,000 families had borrowed a total of £29m from illegal money lenders.
The think tank said on average it would take a year to pay the money back as lenders recouped three times the value, with some interest rates up to 1,500%.
The average amount borrowed was £288, but the average repayment was £820.
Mick McAteer, director of the Financial Inclusion Centre, said: "Because of the financial crisis, the High Street banks are restricting the access to loans to those people they consider to be low risk or [have a] higher income.
"That tends to push more and more people out into the hands of loan sharks."
The research was commissioned by housing association Circle Anglia, after it noticed loan sharks increasingly targeting its residents.
The government's consumer minister, Kevin Brennan, said: "It is worrying that people are borrowing these sums of money from loan sharks, because they're illegal.
"In the law they don't have to pay it back, and my advice would be don't go to a loan shark if you need to borrow. Approach a credit union or one of our debt advice teams."
Chris Tapp, of charity Credit Action, urged people to contact the police if they fell victim to loan sharks, because the lending was illegal.
He said: "It often feels like the only option is to go for the person they know of locally, to go to the loan shark, but that's not actually the case.
"In a lot of communities now around Britain there are credit unions or local finance organisations that operate from the 'third sector'.
"They're not-for-profit organisations that can lend money at considerably lower rates.
"It's not actually as cheap as you'd get from a bank, but it's much cheaper than borrowing from an illegal lender."
Also, the government's social fund helps people on low incomes and on benefits when they need crisis loans immediately, he said.
The Financial Inclusion Centre said 100,000 families had borrowed a total of £29m from illegal money lenders.
The think tank said on average it would take a year to pay the money back as lenders recouped three times the value, with some interest rates up to 1,500%.
The average amount borrowed was £288, but the average repayment was £820.
Mick McAteer, director of the Financial Inclusion Centre, said: "Because of the financial crisis, the High Street banks are restricting the access to loans to those people they consider to be low risk or [have a] higher income.
"That tends to push more and more people out into the hands of loan sharks."
The research was commissioned by housing association Circle Anglia, after it noticed loan sharks increasingly targeting its residents.
The government's consumer minister, Kevin Brennan, said: "It is worrying that people are borrowing these sums of money from loan sharks, because they're illegal.
"In the law they don't have to pay it back, and my advice would be don't go to a loan shark if you need to borrow. Approach a credit union or one of our debt advice teams."
Chris Tapp, of charity Credit Action, urged people to contact the police if they fell victim to loan sharks, because the lending was illegal.
He said: "It often feels like the only option is to go for the person they know of locally, to go to the loan shark, but that's not actually the case.
"In a lot of communities now around Britain there are credit unions or local finance organisations that operate from the 'third sector'.
"They're not-for-profit organisations that can lend money at considerably lower rates.
"It's not actually as cheap as you'd get from a bank, but it's much cheaper than borrowing from an illegal lender."
Also, the government's social fund helps people on low incomes and on benefits when they need crisis loans immediately, he said.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, credit crunch, home loans, refinancing rates, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 2:02 PM 0 comments
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Thursday, January 14, 2010
Inaccurate data files restricts borrowers access to credit
Inaccurate information on credit files is preventing consumers from gaining access to loans and credit, the Information Commissioner's Office (ICO) has said.
The ICO is urging people in the UK to check their file so the information accessed by lenders is accurate.
Banks, shops and catalogue companies all use these files to decide whether to offer credit to customers.
Information should be corrected by the organisation that provided it to the credit reference agency.
"Many of us will be relying on credit to get us through 2010," said David Smith, deputy commissioner at the ICO.
"Out of date or wrong information in your credit file might not only stop you getting the credit you need but could have further damaging or embarrassing consequences.
"By checking your credit file regularly you can spot anything that is wrong and act swiftly to correct it."
Individuals have the right, under the Data Protection Act, to look at their credit file. The ICO has produced a new guide that runs through how to access these files.
The ICO is urging people in the UK to check their file so the information accessed by lenders is accurate.
Banks, shops and catalogue companies all use these files to decide whether to offer credit to customers.
Information should be corrected by the organisation that provided it to the credit reference agency.
"Many of us will be relying on credit to get us through 2010," said David Smith, deputy commissioner at the ICO.
"Out of date or wrong information in your credit file might not only stop you getting the credit you need but could have further damaging or embarrassing consequences.
"By checking your credit file regularly you can spot anything that is wrong and act swiftly to correct it."
Individuals have the right, under the Data Protection Act, to look at their credit file. The ICO has produced a new guide that runs through how to access these files.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Aussie loans rates, credit crunch, home loans, Loan calculator, sub prime loans, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 3:22 PM 0 comments
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Wednesday, January 13, 2010
Credit card borrowing costs are highest since 2006
The average loans interest rate charged during the month was the highest average interest rate since September 2006.
The cost of credit card borrowing continued to increase during December, with lenders hiking their rates from an average of 15.89pc in November to 16.28pc.
The interest charged during the month was the highest average rate since September 2006, and considerably higher than the 15.58pc seen in December 2008.
Rates for people borrowing £10,000 through personal loans remained at 11.08pc, up from 9.3pc a year earlier and the highest level since August 2002.
Interest charged on a £5,000 loan also rose by more than 1pc during the year, climbing from 12.08pc to 13.38pc, while average overdraft rates rose from 18.04pc to 18.96pc.
The figures contained little cheer for savers, with the average rate paid on a branch-based instant access account remaining close to its recent record low at 0.17pc, while interest on notice accounts dropped by 0.03pc to 0.31pc.
Returns paid on fixed-rate bonds, currently the most competitive area of the savings market, fell for the fourth month in a row, dropping to 2.51pc, down from a recent peak of 3.05pc in August last year.
The cost of credit card borrowing continued to increase during December, with lenders hiking their rates from an average of 15.89pc in November to 16.28pc.
The interest charged during the month was the highest average rate since September 2006, and considerably higher than the 15.58pc seen in December 2008.
Rates for people borrowing £10,000 through personal loans remained at 11.08pc, up from 9.3pc a year earlier and the highest level since August 2002.
Interest charged on a £5,000 loan also rose by more than 1pc during the year, climbing from 12.08pc to 13.38pc, while average overdraft rates rose from 18.04pc to 18.96pc.
The figures contained little cheer for savers, with the average rate paid on a branch-based instant access account remaining close to its recent record low at 0.17pc, while interest on notice accounts dropped by 0.03pc to 0.31pc.
Returns paid on fixed-rate bonds, currently the most competitive area of the savings market, fell for the fourth month in a row, dropping to 2.51pc, down from a recent peak of 3.05pc in August last year.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: credit crunch, recession, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:37 PM 0 comments
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Tuesday, January 12, 2010
Christmas takes three months to pay off on average
Britons are taking twice as long to repay their Christmas debts having spent an average of £435 on presents than a decade ago.
Credit card holders are taking an average of 90 days to pay off the debt they built up over Christmas, more than a month longer than a decade ago, according to the findings by the over 50s group Saga.
Paul Green, a spokesman for Saga Group, said: “It is a shocking indictment of the nation’s economy that so many people are left struggling to cope with so much debt.”
Credit card holders took 33 days less to pay off their debts, or just 57 days in 1999, it said.
Younger people are less debt savvy with one in five under 50s saying they were still paying off debts incurred from Christmas 2008. But those over 50 are much wiser users of credit with a third of card holders planning to clear their balance immediately.
The reliance on credit cards to cover the costs of Christmas comes after savers saw their rates of return plummet last year. It means almost all higher rate taxpayers now miss out on a return on their savings once tax and inflation is taken into account.
Just 13 per cent of people dipped into their savings to help fund Christmas last year, compared to 31 per cent 10 years ago, Saga said.
Credit card holders are taking an average of 90 days to pay off the debt they built up over Christmas, more than a month longer than a decade ago, according to the findings by the over 50s group Saga.
Paul Green, a spokesman for Saga Group, said: “It is a shocking indictment of the nation’s economy that so many people are left struggling to cope with so much debt.”
Credit card holders took 33 days less to pay off their debts, or just 57 days in 1999, it said.
Younger people are less debt savvy with one in five under 50s saying they were still paying off debts incurred from Christmas 2008. But those over 50 are much wiser users of credit with a third of card holders planning to clear their balance immediately.
The reliance on credit cards to cover the costs of Christmas comes after savers saw their rates of return plummet last year. It means almost all higher rate taxpayers now miss out on a return on their savings once tax and inflation is taken into account.
Just 13 per cent of people dipped into their savings to help fund Christmas last year, compared to 31 per cent 10 years ago, Saga said.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Aussie loans rates, consolidate debt loans, credit crunch, recession, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 2:07 PM 0 comments
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Monday, January 11, 2010
Sub prime lender may be about to re enter loans market
Sub prime lender Paragon announced last week that the buy-to-let lender was getting closer to starting new lending.
Rumour has it that management at the group met with bankers and lawyers last week to discuss the resumption of lending.
Rumour has it that management at the group met with bankers and lawyers last week to discuss the resumption of lending.
The company said last November that any improvements in funding markets would encourage it to look more confidently at reinstating its funding programme to support new lending.
Paragon was forced to stop new lending in early 2008 because of higher funding costs amid the financial crisis. The group trades at a big discount to its net asset value, but usually trades at a premium when lending.
Paragon was forced to stop new lending in early 2008 because of higher funding costs amid the financial crisis. The group trades at a big discount to its net asset value, but usually trades at a premium when lending.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, credit crunch, home loans, Loan calculator, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 1:14 PM 0 comments
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Friday, January 08, 2010
Bank of England freeze on UK interest rates continues
UK interest rates have been left at 0.5% following the Bank of England's latest meeting.
The cost of borrowing has been at a record low since March 2009 and economists do not expect the central bank to raise rates in the near term.
The Bank's Monetary Policy Committee (MPC) also maintained the quantitative easing (QE), or asset buying, programme at £200bn.
The UK is thought to have exited recession in the last quarter of 2009.
The MPC said it expected its QE programme to take another month to complete and that the scale of the programme would be kept under review.
Manufacturers said they supported the Bank's decision. The recovery is now underway, but its strength remains in doubt.
The cost of borrowing has been at a record low since March 2009 and economists do not expect the central bank to raise rates in the near term.
The Bank's Monetary Policy Committee (MPC) also maintained the quantitative easing (QE), or asset buying, programme at £200bn.
The UK is thought to have exited recession in the last quarter of 2009.
The MPC said it expected its QE programme to take another month to complete and that the scale of the programme would be kept under review.
Manufacturers said they supported the Bank's decision. The recovery is now underway, but its strength remains in doubt.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Aussie loans rates, Bank of England, credit crunch, home loans-rates-UK, interest rates, Loan calculator, MPC, Quantitative Easing, uk recession
# posted by Dr Search- Principal Consultant at the Search Clinic @ 6:20 PM 0 comments
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Thursday, January 07, 2010
UK loans interest rates could rise as early as March
UK loans interest rates could start to rise in two months' time, according to one economist.
Signs of an economic recovery and sharply rising inflation could force the Bank of England's monetary policy committee (MPC) to consider raising rates early this year, an analysis by Henderson New Star indicated.
The company's "MPC-ometer" – a statistical tool for forecasting interest rate decisions based on the latest economic and financial indicators – predicts that the MPC will shift to a "tightening bias" in early 2010.
"With preliminary fourth-quarter GDP [economic growth] figures released in late January likely to confirm a recovery, and inflation rising sharply, the model suggests that Bank Rate could be increased as early as March," Henderson said.
The MPC-ometer has a good record of predicting the Bank's decisions on interest rates. It has correctly signalled the month and direction of 12 out of 13 rate movements over the past two and a half years, two more than the mean economists' forecast from the monthly Reuters poll, the fund manager said.
Simon Ward, Henderson's chief economist, said: "Monetary policy must remain loose to support the recovery but the current emergency level of Bank Rate is no longer warranted and poses a risk to achieving the inflation target.
"The MPC is likely to prepare markets for policy reversal in the February Inflation Report and follow through with a rate increase in the spring, unless economic or financial indicators take a sudden turn for the worse."
Mr Ward first warned in September last year that rates could start to rise sharply in early 2010. He said then: "Given the historically low starting level [of interest rates], rises in Bank Rate, when they begin, could be larger than in the initial stages of prior cycles."
Signs of an economic recovery and sharply rising inflation could force the Bank of England's monetary policy committee (MPC) to consider raising rates early this year, an analysis by Henderson New Star indicated.
The company's "MPC-ometer" – a statistical tool for forecasting interest rate decisions based on the latest economic and financial indicators – predicts that the MPC will shift to a "tightening bias" in early 2010.
"With preliminary fourth-quarter GDP [economic growth] figures released in late January likely to confirm a recovery, and inflation rising sharply, the model suggests that Bank Rate could be increased as early as March," Henderson said.
The MPC-ometer has a good record of predicting the Bank's decisions on interest rates. It has correctly signalled the month and direction of 12 out of 13 rate movements over the past two and a half years, two more than the mean economists' forecast from the monthly Reuters poll, the fund manager said.
Simon Ward, Henderson's chief economist, said: "Monetary policy must remain loose to support the recovery but the current emergency level of Bank Rate is no longer warranted and poses a risk to achieving the inflation target.
"The MPC is likely to prepare markets for policy reversal in the February Inflation Report and follow through with a rate increase in the spring, unless economic or financial indicators take a sudden turn for the worse."
Mr Ward first warned in September last year that rates could start to rise sharply in early 2010. He said then: "Given the historically low starting level [of interest rates], rises in Bank Rate, when they begin, could be larger than in the initial stages of prior cycles."
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Bank of England, home loans-rates-UK, interest rates, Loan calculator
# posted by Dr Search- Principal Consultant at the Search Clinic @ 6:11 PM 0 comments
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Wednesday, January 06, 2010
Beware credit card quick fixes
Credit cards are the number one source of outrageously high interest debt in this country and also the number one candidate for debt consolidation.
Before the credit crunch, it was all too easy for most of us to obtain as many credit cards as we could pack into our wallets.
Constantly bombarded with teaser rates and unsolicited junk mail offering huge lines of credit, perhaps you have more than enoughcredit cards and less than enough money to meet the financial obligation of paying these cards each month.
Constantly bombarded with teaser rates and unsolicited junk mail offering huge lines of credit, perhaps you have more than enoughcredit cards and less than enough money to meet the financial obligation of paying these cards each month.
If you are like most Britons, you can barely keep up with the minimum monthly payments on your many credit cards. By choosing debt consolidation for your credit card debt and other debts, you can save yourself an untold amount of interest charges and finally pay off your credit cards for good.
In Britain, we have become a society that loves to use credit for everything, and many of us have been living outside of our means for awhile now. Credit card companies use predatory tactics to lure consumers into thinking they are getting a great deal on their next new credit card by offering teaser rates that usually start out at zero percent or one percent, and then quickly balloon up to fifteen percent or higher once the introductory period of several months have passed.
In Britain, we have become a society that loves to use credit for everything, and many of us have been living outside of our means for awhile now. Credit card companies use predatory tactics to lure consumers into thinking they are getting a great deal on their next new credit card by offering teaser rates that usually start out at zero percent or one percent, and then quickly balloon up to fifteen percent or higher once the introductory period of several months have passed.
If you are late with one payment, even by a few days, tiny print in the terms and conditions of many cards will tell you that your new interest rate will be the default rate, which is typically 19.99%.
This amounts to outrageous interest charges and in many cases, the minimum monthly payment that most consumers make on their credit cards does not include any of the principle balance owed, but is just interest.
This amounts to outrageous interest charges and in many cases, the minimum monthly payment that most consumers make on their credit cards does not include any of the principle balance owed, but is just interest.
How can the consumer get out of debt by paying only the interest on their credit cards each month? Simply put, it is not possible. Debt consolidation, however, can allow you to pay off your credit cards in full and put a halt to this ridiculous interest that is keeping you weighted down with burdensome debt.
With debt consolidation, you can pay off all of your existing debts at once, including your credit cards. You can also include personal loans, department store charge cards, gasoline cards, automobile loans, and private student loans.
With debt consolidation, you can pay off all of your existing debts at once, including your credit cards. You can also include personal loans, department store charge cards, gasoline cards, automobile loans, and private student loans.
By rolling all of your existing debt into one big debt, you save a ton of interest charges because your newdebt consolidation will be written, typically, at a much lower rate. The amount that you will be required to pay each month with debt consolidation is generally much less than the total amount that you were paying your previous lenders combined. Most terms of debt consolidation run five years or less, which means that you can pay off everything you owe fast.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, credit crunch, Loan calculator, loans, loans rates, sub prime loans, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 6:04 PM 0 comments
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Tuesday, January 05, 2010
Beware quick fix loans can be expensive
Even a £100 loan can turn into a monster debt if you don't pay it back on time.
Short term loan firms will be expecting a bumper month as the post Christmas debt blues take their toll.
Short term loan firms will be expecting a bumper month as the post Christmas debt blues take their toll.
Instant cash following a couple of quick text messages can help tide you over until payday, but the costs can quickly mount up.
However, relying on this type of service on a regular basis can be a very dangerous way of borrowing.
Repaying £110 on a £100 loan may sound harmless enough but it may actually equate to an interest rate of 994 per cent APR.
You are may also be charged a £1 handling fee for each text sent as well as a one-off £1 fee for the initial registration. More importantly, if you fail to pay back the loan within seven days, the costs can spiral in a matter of days.
If your credit rating is OK, it's far cheaper to borrow on an agreed overdraft from your bank, although not on an unauthorised overdraft. The Alliance & Leicester Premier Account offers a 12-month overdraft at 0 per cent interest as long as you pay in £500 per month, although watch out if you breach the authorised overdraft limits and face penalty fees of £5 per day, up to a maximum of £100.
If your credit rating is OK, it's far cheaper to borrow on an agreed overdraft from your bank, although not on an unauthorised overdraft. The Alliance & Leicester Premier Account offers a 12-month overdraft at 0 per cent interest as long as you pay in £500 per month, although watch out if you breach the authorised overdraft limits and face penalty fees of £5 per day, up to a maximum of £100.
Some bank accounts also have a buffer zone, allowing you to go overdrawn by a small amount without paying any interest; NatWest, for example, has a £15 buffer, whilst HSBC's buffer is £10.
Alternatively, look for a low-rate credit card such as the Barclaycard Simplicity Visa, which charges just 6.8 per cent, or take advantage of cards with introductory bonuses. The best buy for new spending is the Tesco Clubcard Credit Card, which gives 12 months interest free, followed by 16.9 per cent APR. Otherwise, there are credit cards aimed specifically at those with tarnished credit records.
For anyone struggling because they haven't yet built up a credit rating, the Barclaycard Initial charges 27.9 per cent APR. The Capital One Classic card charges 34.9 per cent and is open to people with County Court Judgments, and for sub-prime borrowers, the Aqua Mastercard charges from up to 39.9 per cent, and the Vanquis Bank Visa charges up to 59.9 per cent.
Alternatively, look for a low-rate credit card such as the Barclaycard Simplicity Visa, which charges just 6.8 per cent, or take advantage of cards with introductory bonuses. The best buy for new spending is the Tesco Clubcard Credit Card, which gives 12 months interest free, followed by 16.9 per cent APR. Otherwise, there are credit cards aimed specifically at those with tarnished credit records.
For anyone struggling because they haven't yet built up a credit rating, the Barclaycard Initial charges 27.9 per cent APR. The Capital One Classic card charges 34.9 per cent and is open to people with County Court Judgments, and for sub-prime borrowers, the Aqua Mastercard charges from up to 39.9 per cent, and the Vanquis Bank Visa charges up to 59.9 per cent.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: credit crunch, Loan calculator, loans, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 5:53 PM 0 comments
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Tuesday, December 29, 2009
Personal loans rationed as costs rise
UK borrowers looking to take out a personal loan will find it increasingly difficult as banks tighten their lending criteria and increase the cost of personal loans to limit the best deals to existing customers.
The average rate of a best buy £5,000 loan has risen by 1.54 per cent since the beginning of the year to 10.78 per cent despite interest rates remaining at just 0.5 per cent.
Research also revealed that eight out of nine high street lenders have restricted their loan offerings to existing customers, typically those who hold a current account .
While the number of people searching for a loan using its services has increased by 20 per cent since the end of last year, figures from the British Bankers’ Association showed that borrowing through personal loans has dropped by 28 per cent over the same period.
The average rate of a best buy £5,000 loan has risen by 1.54 per cent since the beginning of the year to 10.78 per cent despite interest rates remaining at just 0.5 per cent.
Research also revealed that eight out of nine high street lenders have restricted their loan offerings to existing customers, typically those who hold a current account .
While the number of people searching for a loan using its services has increased by 20 per cent since the end of last year, figures from the British Bankers’ Association showed that borrowing through personal loans has dropped by 28 per cent over the same period.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: interest rates, Loan calculator, loans rates, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 11:54 AM 0 comments
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Thursday, December 24, 2009
Cost of UK loans close to Italy debt interest rates
The cost of borrowing for the British citizens has surged to within a whisker of Italian levels as global debt markets issue their damning verdict on the labour Government’s spending plans.
The yield on 10 year gilts rocketed yesterday to 3.97pc, 46 basis points higher than costs on French bonds.
Britain and France were neck and neck as recently as last month, before Labour’s pre-Budget report raised deep concerns among Chinese, Arab, and Russian investors about the credibility of British state.
But what has caught market attention is the narrowing gap with Italian bonds, once mocked as the symbol of an ill-governed nation in thrall to the Dolce Vita.
Yields on 10-Italian treasuries have been hovering just above 4pc despite the eurozone’s Greek crisis, dropping as low as 3.98pc earlier this week.
Britain is vulnerable to a “gilts strike” because foreign investors own £217bn of UK debt, or 28pc of the total. These are footloose funds and likely to sell large holdings if Britain loses its AAA rating.
They have other tempting places to park their money, such as Turkey, Brazil, or India, where demography is healthy and growth prospects are better. Chile has already undercut British debt yields on some maturities.
Italy has its own problems, of course. Public debt was much higher before the crisis began. The IMF expects it to reach 120pc of GDP next year. However, this debt is mostly owned by high-saving Italians, who are less fickle than foreign funds.
For Italy, this may just be the calm before the storm. Markets assume that Germany will ultimately bail out Greece if necessary, preventing contagion to the rest of the Club Med bloc.
This is a questionable judgement. Volker Wissing, head of the finance committee of the German Bundestag, said it must be made explicit that “Germany will not take responsibility for Greek debts”.
The yield on 10 year gilts rocketed yesterday to 3.97pc, 46 basis points higher than costs on French bonds.
Britain and France were neck and neck as recently as last month, before Labour’s pre-Budget report raised deep concerns among Chinese, Arab, and Russian investors about the credibility of British state.
But what has caught market attention is the narrowing gap with Italian bonds, once mocked as the symbol of an ill-governed nation in thrall to the Dolce Vita.
Yields on 10-Italian treasuries have been hovering just above 4pc despite the eurozone’s Greek crisis, dropping as low as 3.98pc earlier this week.
Britain is vulnerable to a “gilts strike” because foreign investors own £217bn of UK debt, or 28pc of the total. These are footloose funds and likely to sell large holdings if Britain loses its AAA rating.
They have other tempting places to park their money, such as Turkey, Brazil, or India, where demography is healthy and growth prospects are better. Chile has already undercut British debt yields on some maturities.
Italy has its own problems, of course. Public debt was much higher before the crisis began. The IMF expects it to reach 120pc of GDP next year. However, this debt is mostly owned by high-saving Italians, who are less fickle than foreign funds.
For Italy, this may just be the calm before the storm. Markets assume that Germany will ultimately bail out Greece if necessary, preventing contagion to the rest of the Club Med bloc.
This is a questionable judgement. Volker Wissing, head of the finance committee of the German Bundestag, said it must be made explicit that “Germany will not take responsibility for Greek debts”.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, credit crunch, interest rates, labour liars, refinancing rates, sub prime loans, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 11:51 AM 0 comments
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Wednesday, December 23, 2009
UK consumers pay off debts
New loans figures from high Street banks showed consumers are concentrating on paying off debts in the recession.
Figures from the British Bankers' Association (BBA) showed that total consumer credit has contracted by 2.2% over the last year.
But the number of mortgage approvals for house purchases has reached the same level as two years ago.There were 44,713 mortgages approved, up 2,161 on the previous month.
"Household priorities are showing up in the November figures," said David Dooks, statistics director for the BBA.
"Demand for new personal loans was weak and people are paying off debt or building savings in response to economic circumstances."
The BBA said that demand for personal loans was particularly weak and balances had fallen by £3.6bn over the year to date.
In November, people paid back £300m more in total than they took out in new credit.
This follows figures from the Office for National Statistics on Tuesday which showed that the household savings ratio - the percentage of disposable income that is saved - rose to its highest level since 1998.
In the third quarter of the year, the proportion rose to 8.7% of income, as against 7.6% in the previous three months.
The BBA figures showed that the increase in the amount of personal deposits and savings put in High Street bank accounts slowed in November compared with the previous month, but they were 3.9% up on the same month a year earlier.
So far this year, deposits have increased by more than £18bn, compared with £21bn in the same period of 2008.
Figures from the British Bankers' Association (BBA) showed that total consumer credit has contracted by 2.2% over the last year.
But the number of mortgage approvals for house purchases has reached the same level as two years ago.There were 44,713 mortgages approved, up 2,161 on the previous month.
"Household priorities are showing up in the November figures," said David Dooks, statistics director for the BBA.
"Demand for new personal loans was weak and people are paying off debt or building savings in response to economic circumstances."
The BBA said that demand for personal loans was particularly weak and balances had fallen by £3.6bn over the year to date.
In November, people paid back £300m more in total than they took out in new credit.
This follows figures from the Office for National Statistics on Tuesday which showed that the household savings ratio - the percentage of disposable income that is saved - rose to its highest level since 1998.
In the third quarter of the year, the proportion rose to 8.7% of income, as against 7.6% in the previous three months.
The BBA figures showed that the increase in the amount of personal deposits and savings put in High Street bank accounts slowed in November compared with the previous month, but they were 3.9% up on the same month a year earlier.
So far this year, deposits have increased by more than £18bn, compared with £21bn in the same period of 2008.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, credit crunch, home loans, Loan calculator
# posted by Dr Search- Principal Consultant at the Search Clinic @ 6:21 PM 0 comments
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Tuesday, December 22, 2009
MPs review credit rating systems
A committee of MPs has recommended an investigation into whether consumers are being penalised for shopping around for loans.
The report by the Treasury Committee failed to give any strong indication as to whether any changes should be made in the market.
Consumer groups argue that multiple searches affect the rates that people might be charged. But providers said information was shared between lenders to stop fraud.
The committee heard evidence in late October that shopping around for loans could affect people's credit ratings. This meant some missed out on credit or were put off shopping around.
However, the committee reported that it had not been given "overwhelming evidence that it is a major source of direct consumer detriment".
But it had also not been presented with "unequivocal evidence" that credit searches were essential for loan providers.
The committee called on the Office of Fair Trading to investigate the market, and for the Information Commissioner to look into whether the £2 fee charged to people who wanted to access their credit file was reasonable.
The report by the Treasury Committee failed to give any strong indication as to whether any changes should be made in the market.
Consumer groups argue that multiple searches affect the rates that people might be charged. But providers said information was shared between lenders to stop fraud.
The committee heard evidence in late October that shopping around for loans could affect people's credit ratings. This meant some missed out on credit or were put off shopping around.
However, the committee reported that it had not been given "overwhelming evidence that it is a major source of direct consumer detriment".
But it had also not been presented with "unequivocal evidence" that credit searches were essential for loan providers.
The committee called on the Office of Fair Trading to investigate the market, and for the Information Commissioner to look into whether the £2 fee charged to people who wanted to access their credit file was reasonable.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, home loans, Loan calculator, loans, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 10:11 AM 0 comments
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Monday, December 21, 2009
iPhone apps to help you save money
There are a growing number of "apps" that are designed to help you manage your money better.
For those still getting to grips with the world of "apps" these are simply applications that can be downloaded to an iPhone or iPod Touch, two of the most search for products this Christmas.
The iTunes store now has more than 90,000 of these applications, which offer games, city guides, travel planners, language dictionaries and music services. Some of these apps are free, and most cost less than £4.99.
And if you do not own an iPhone, Nokia, Orange, Samsung and BlackBerry have all launched their own application stores – although the choice of products is more limited.
Red Laser- this costs £1.19 and will scan any bar code for you then search for cheaper online prices using the Google product search.
For those still getting to grips with the world of "apps" these are simply applications that can be downloaded to an iPhone or iPod Touch, two of the most search for products this Christmas.
The iTunes store now has more than 90,000 of these applications, which offer games, city guides, travel planners, language dictionaries and music services. Some of these apps are free, and most cost less than £4.99.
And if you do not own an iPhone, Nokia, Orange, Samsung and BlackBerry have all launched their own application stores – although the choice of products is more limited.
Red Laser- this costs £1.19 and will scan any bar code for you then search for cheaper online prices using the Google product search.
This is particularly useful when buying larger items such as televisions and fridges, saving you money and the hassle of shopping around for better deals. It will also scan a book then check for reviews or scan groceries and add it to its shopping list, so next time you visit the supermarket, you have a list ready.
Lower phone bills- if you are fed up paying 35p per minute calling premium rate phone number, then download the free "0870" app.
This converts 0870, 0845 and 0800 telephone numbers into normal rate landline number, eg those starting with 020, 0151, 0115 etc. These will either be including within your monthly call allowance or are substantially cheaper to call for those on pay as you go packages.
Mobile phone owners may also want to download Mobile Allowance, for 59p, this app gives you a comprehensive reading of your mobile allowance, showing phone owners how many free minutes and texts they have left.
Mobile phone owners may also want to download Mobile Allowance, for 59p, this app gives you a comprehensive reading of your mobile allowance, showing phone owners how many free minutes and texts they have left.
This is ideal for those who are prone to talking or texting too much, and going over their limit. Both talk time and texts are shows as a progress bar on your phone helping you keep track of your monthly usage.
Cut petrol costs- For £4.99, PetrolPrice Pro automatically records your position and give you the cheapest fuel options within a 5, 10 15 or 20 mile radius.
Reduce utility bills- Meter Readings is the most popular paid-for financial application, as it helps users keep track of their energy and water usage. Once you've entered your meter readings, the app will show your usage in a graph, showing what you use and what it costs.
For 59p, this app can configure up to three separate tariffs per meter, useful for electricity where different rates are charged during the day and at night. It's hoped that this will encourage people to reduce the amount of energy they use, switch their habits (eg use the washing machine overnight) and so cut bills.
There's often a large discrepancy between estimated readings and actual readings, so this app also makes sure you are not overcharged.
Reduce utility bills- Meter Readings is the most popular paid-for financial application, as it helps users keep track of their energy and water usage. Once you've entered your meter readings, the app will show your usage in a graph, showing what you use and what it costs.
For 59p, this app can configure up to three separate tariffs per meter, useful for electricity where different rates are charged during the day and at night. It's hoped that this will encourage people to reduce the amount of energy they use, switch their habits (eg use the washing machine overnight) and so cut bills.
There's often a large discrepancy between estimated readings and actual readings, so this app also makes sure you are not overcharged.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, credit crunch, home loans, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 6:05 PM 0 comments
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Friday, December 18, 2009
Students loans let down by new labour spin
Every September the Student Loan interest rate changes based on the Retail Price Index rate from the previous March.
This March’s RPI was -0.4% however most students who could have expected to see student loan balances reduced in line with this will be disappointed. Only Students who took out there loan pre 1998 will actually see their balances reduced by 0.4%.
As Student loans were meant to linked to inflation, and this principle is not been followed, those students who took the loan out after 1998 are now out of pocket as their purchasing power is dilapidated.
The monthly payments for Students will remain at the same rate, as borrowers are required to pay back nine percent of their earnings over £15,000; so as the interest rate has been reduced to zero, the balance will reduce at a greater rate.
As Student loans were meant to linked to inflation, and this principle is not been followed, those students who took the loan out after 1998 are now out of pocket as their purchasing power is dilapidated.
The monthly payments for Students will remain at the same rate, as borrowers are required to pay back nine percent of their earnings over £15,000; so as the interest rate has been reduced to zero, the balance will reduce at a greater rate.
This is still not good enough for some students who believe that the principle should apply and that they should therefore benefit from this deflationary period by seeing the balances automatically reduced.
It is worth noting that by applying deflationary rates to the balances of Student Loans, students taking out new loans would see the balances automatically reduced and the tax payer would have to fund this.
It is worth noting that by applying deflationary rates to the balances of Student Loans, students taking out new loans would see the balances automatically reduced and the tax payer would have to fund this.
Deflation is now even higher than in March, sub one percent, so applying this principle to all student loans could put even more pressure on the economy in recession and the whole student loans system, as it could see the taxpayer funding further, greater reductions next year, and who knows about years to come.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, Loan calculator, sub prime loans, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 5:45 PM 0 comments
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Thursday, December 17, 2009
Sainsburys Bank increases it's UK loans market focus
As the UK's personal and business markets improve Sainsbury's appears to be focusing on the UK personal loans market.
Customers who hold Sainsbury's nectar loyalty cards are being offered cheap personal loans from between £5000 and £15,000 if they apply online. The more conventional rate is 8.1% but all holders of nectar cards are able to secure a rate of 7.9%.
This is the cheapest rate that is available without having to be an existing customer of a lender. Fascinatingly, there is no cut-off point at which you need to be a nectar card holder therefore many people have been applying for the card and then applying for a loan.
This is visibly a very clever ploy by Sainsbury's to increase interest in its loyalty card and at the same time secure personal finance transactions well in excess of UK base rates. This will probably be a sign of things to come with the likes of Tesco very active in the finance market as well.
In their own right, offers such as that available through Sainsbury's would mean very little in a review of the UK economy but when pieced together with significant improvements in mortgage rates and improved liquidity in the market place, slowly but surely there are signs of hope for the UK.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: credit crunch, home loans, UK loans rates, uk recession
# posted by Dr Search- Principal Consultant at the Search Clinic @ 5:39 PM 0 comments
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Wednesday, December 16, 2009
US to keep loans interest rates low
The Amercian US Federal Reserve repeated its promise to keep interest rates low for an extended period as economic activity remains weak.
Releasing the minutes from its December meeting, the central bank committee left the lending rate at zero to 0.25 per cent. There has been no change to the rate since last December.
The Fed gave a more cheerful assessment of the economy than it had after its meeting last month.
It said that the environment had “continued to pick up”, with an improvement in the labour market, moderate expansion in household spending and signs of improvement in the housing sector.
But the Fed said that with considerable slack remaining in manufacturing capacity, there was little danger of inflation.
Also, although improving, unemployment is still high at 10 per cent and credit continues to be difficult to obtain, the bank said.
There have been concerns that the Fed’s ultra-low rates policy would fuel inflation.
However, Ben Bernanke, the Fed Chairman, considers low rates to be vital to sustaining the economic recovery.
The US Dollar Index, which tracks the greenback against other main currencies, rose to 76.983 points after the Fed’s more optimistic outlook for the economy, up from 76.815 pre-announcement.
Releasing the minutes from its December meeting, the central bank committee left the lending rate at zero to 0.25 per cent. There has been no change to the rate since last December.
The Fed gave a more cheerful assessment of the economy than it had after its meeting last month.
It said that the environment had “continued to pick up”, with an improvement in the labour market, moderate expansion in household spending and signs of improvement in the housing sector.
But the Fed said that with considerable slack remaining in manufacturing capacity, there was little danger of inflation.
Also, although improving, unemployment is still high at 10 per cent and credit continues to be difficult to obtain, the bank said.
There have been concerns that the Fed’s ultra-low rates policy would fuel inflation.
However, Ben Bernanke, the Fed Chairman, considers low rates to be vital to sustaining the economic recovery.
The US Dollar Index, which tracks the greenback against other main currencies, rose to 76.983 points after the Fed’s more optimistic outlook for the economy, up from 76.815 pre-announcement.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Bernanke, FED, home loans, interest rates, loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 5:33 PM 0 comments
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Tuesday, December 15, 2009
New debt repayment system talked about
A group which reports directly to the Cabinet Office and the Government's chief scientific officer meets to discuss various proposals including setting up better co-ordinated "debt care pathways" between health professionals and debt advisers.
The so-called "Foresight Project on Mental Capital and Wellbeing" will also look at the idea of a "voluntary register for bipolar people to prevent them from overspending".
Other initiatives are also taking place, coming from government, psychiatrists, the debt advice world and even from lenders. They are responding to the fact that mental health seems to be a more widespread factor in debt than was previously thought. The "one in four" statistic – one in four people with debt problems also suffers from depression or another condition – is well-established.
Other initiatives are also taking place, coming from government, psychiatrists, the debt advice world and even from lenders. They are responding to the fact that mental health seems to be a more widespread factor in debt than was previously thought. The "one in four" statistic – one in four people with debt problems also suffers from depression or another condition – is well-established.
But the real figure could be much higher. As many as "half of all adults in debt may have a mental health problem", according to the Royal College of Psychiatrists, which published new evidence in October, along with charities Rethink and the Money Advice Trust.
The problem is that debt can also induce depression as a natural reaction. "It's chicken and egg," says Frances Walker of the Consumer Credit Counselling Service. "Which comes first – debt or depression?" And Fred (not his real name), a debtor-turned-debt adviser, says: "Debt, depression and divorce, the three Ds, go hand in hand."
Until four years ago, there was very little assistance for the depressed or other mental health sufferers in this field. The notion that they might have special problems was something that was rarely discussed. Since then the work of some 20 or 30 committed people has pushed the issue up the agenda. So, only a week ago, a new form was launched which enables health and social care professionals to assist those who are unable to control their financial matters.
The problem is that debt can also induce depression as a natural reaction. "It's chicken and egg," says Frances Walker of the Consumer Credit Counselling Service. "Which comes first – debt or depression?" And Fred (not his real name), a debtor-turned-debt adviser, says: "Debt, depression and divorce, the three Ds, go hand in hand."
Until four years ago, there was very little assistance for the depressed or other mental health sufferers in this field. The notion that they might have special problems was something that was rarely discussed. Since then the work of some 20 or 30 committed people has pushed the issue up the agenda. So, only a week ago, a new form was launched which enables health and social care professionals to assist those who are unable to control their financial matters.
The "Debt and Mental Health Evidence Form" collects together details of social care and health advisers and some evidence of the problem, and can be used to inform lenders that they need to take special care in this person's case. "This will be incredibly important," says Maggie Kirkpatrick, adviser at the CCCS centre in Eastbourne.
Help is at hand: Free debt advice
While those with enough money might prefer to employ the services of lawyers, accountants and other professionals to help them get out of financial difficulty, many people of limited means often require free debt advice. The organisations below can such help.
* Consumer Credit Counselling Service: www.cccs.co.uk and 0800 138 1111
* Citizens Advice: www.citizens advice.org.uk and via local advice centres
* National Debtline: www.nationaldebtline.co.uk 0808 808 4000
Debt woes: 'I felt suicidal. You lose all sense of proportion'
What to do if you are suffering depression or some other kind of mental illness:
1. Try to tackle your debts before they mount up. By confiding in someone else now rather than in a year you can save yourself money and years of worry.
"The idea that I was going to commit suicide over a debt of £5,600 seems incomprehensible now," says Fred (not his real name), a debtor-turned-debt adviser. "But you lose all sense of proportion."
2. Go to your doctor about the anxiety or mental illness aspect. People often attribute sleeplessness and agitation to worry, says Maggie Kirkpatrick of the Consumer Credit Counselling Service (CCCS).
3. Speak to someone else about your finances – a friend but, preferably, a debt adviser. They are used to dealing with these issues and will not be shocked. CCCS takes about 300,000 phone calls a year on debt problems. They can contact your debtors for you, listen to your story and help you get back on course.
4. Avoid doing nothing. You can find that bankruptcy proceedings are started against you if you simply do not reply to your creditors.
Help is at hand: Free debt advice
While those with enough money might prefer to employ the services of lawyers, accountants and other professionals to help them get out of financial difficulty, many people of limited means often require free debt advice. The organisations below can such help.
* Consumer Credit Counselling Service: www.cccs.co.uk and 0800 138 1111
* Citizens Advice: www.citizens advice.org.uk and via local advice centres
* National Debtline: www.nationaldebtline.co.uk 0808 808 4000
Debt woes: 'I felt suicidal. You lose all sense of proportion'
What to do if you are suffering depression or some other kind of mental illness:
1. Try to tackle your debts before they mount up. By confiding in someone else now rather than in a year you can save yourself money and years of worry.
"The idea that I was going to commit suicide over a debt of £5,600 seems incomprehensible now," says Fred (not his real name), a debtor-turned-debt adviser. "But you lose all sense of proportion."
2. Go to your doctor about the anxiety or mental illness aspect. People often attribute sleeplessness and agitation to worry, says Maggie Kirkpatrick of the Consumer Credit Counselling Service (CCCS).
3. Speak to someone else about your finances – a friend but, preferably, a debt adviser. They are used to dealing with these issues and will not be shocked. CCCS takes about 300,000 phone calls a year on debt problems. They can contact your debtors for you, listen to your story and help you get back on course.
4. Avoid doing nothing. You can find that bankruptcy proceedings are started against you if you simply do not reply to your creditors.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, credit crunch, home loans, refinancing rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 1:59 PM 0 comments
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Monday, December 14, 2009
UK banks increase cost of personal loans
UK banks are being accused of profiteering as they increase the amount they charge for personal loans and limit the best deals to existing customers.
The cost of a best buy £5,000 loan has risen 1.54 per cent since the beginning of the year to 10.78 per cent despite interest rates being at a historic low of just 0.5 per cent.
The rise means customers will spend £162 a month over three years repaying the loan, or an extra £120 over the lifetime of the deal compared to last January.
The cost of a best buy £5,000 loan has risen 1.54 per cent since the beginning of the year to 10.78 per cent despite interest rates being at a historic low of just 0.5 per cent.
The rise means customers will spend £162 a month over three years repaying the loan, or an extra £120 over the lifetime of the deal compared to last January.
The Bank of England disclosed last week that non-mortgage or credit card based lending fell by £0.7 billion in October, but experts said the decline was expected given the restricted choice of loans available.
A spokesman for the British Bankers’ Association, said: “We have also seen the average rates for personal loans increase across the board so consumers who are lucky enough to be accepted for a loan have to pay more too.”
“The UK economy has changed considerably since the credit crunch began and it is still changing. Lenders price their loans according to the economic factors of the time, and although there is still aggressive competition for customers, there are also harsh economic realities they have to deal with.
“They still have to fund their loans using a mix of wholesale money and customers’ deposits, and neither of these options is open to them at anything like the Bank of England’s base rate.”
“The UK economy has changed considerably since the credit crunch began and it is still changing. Lenders price their loans according to the economic factors of the time, and although there is still aggressive competition for customers, there are also harsh economic realities they have to deal with.
“They still have to fund their loans using a mix of wholesale money and customers’ deposits, and neither of these options is open to them at anything like the Bank of England’s base rate.”
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Bank of England, home loans, interest rates, Loan calculator, loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 1:51 PM 0 comments
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Friday, December 11, 2009
The cost of fixed rate loans tumbles
The cost of fixed rate loans continued to fall with two more lenders cutting the interest rates they charge on the deals.
Nationwide and Abbey became the latest groups to announce they were reducing rates on their fixed rate deals.
They followed other major lenders such as Cheltenham & Gloucester, first direct, the Post Office and Yorkshire Building Society, which have already cut their home loans rates this month.
The flurry of rate cuts has caused the average interest rate charged on a two-year fixed-rate deal to fall from 4.93pc at the beginning of December to 4.86pc now.
Nationwide announced the biggest range of cuts, reducing the interest charged on about a quarter of its mortgages by up to 0.29pc, with the cost of tracker and fixed-rate deals falling.
The move leaves two-year fixed rate mortgages for people borrowing up to 70pc of their home's value at 3.69pc, while a two-year tracker product for someone with a 30pc deposit starts at 2.64pc. Both deals come with fees of £995.
Meanwhile, Abbey cut its four-year fee-free fixed-rate mortgage for current account customers borrowing 75pc of their home's value by 0.1pc to 4.89pc. It also launched new three-year and five-year fixed-rate deals.
A total of 13 lenders have reduced interest rates on their fixed rate mortgages so far this month, with Newcastle Building Society and the Post Office both cutting them by more than 1pc.
Newcastle Building Society also reduced the minimum deposits it requires from 25pc to 20pc.
Nationwide and Abbey became the latest groups to announce they were reducing rates on their fixed rate deals.
They followed other major lenders such as Cheltenham & Gloucester, first direct, the Post Office and Yorkshire Building Society, which have already cut their home loans rates this month.
The flurry of rate cuts has caused the average interest rate charged on a two-year fixed-rate deal to fall from 4.93pc at the beginning of December to 4.86pc now.
Nationwide announced the biggest range of cuts, reducing the interest charged on about a quarter of its mortgages by up to 0.29pc, with the cost of tracker and fixed-rate deals falling.
The move leaves two-year fixed rate mortgages for people borrowing up to 70pc of their home's value at 3.69pc, while a two-year tracker product for someone with a 30pc deposit starts at 2.64pc. Both deals come with fees of £995.
Meanwhile, Abbey cut its four-year fee-free fixed-rate mortgage for current account customers borrowing 75pc of their home's value by 0.1pc to 4.89pc. It also launched new three-year and five-year fixed-rate deals.
A total of 13 lenders have reduced interest rates on their fixed rate mortgages so far this month, with Newcastle Building Society and the Post Office both cutting them by more than 1pc.
Newcastle Building Society also reduced the minimum deposits it requires from 25pc to 20pc.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: home loans, Loan calculator
# posted by Dr Search- Principal Consultant at the Search Clinic @ 5:50 PM 0 comments
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Thursday, December 10, 2009
UK loans interest rate remains at 0.5%
The Bank of England has held UK loans interest rates at the record low of 0.5% in a widely expected move.
It also announced no changes to its programme of pumping newly-created money into the economy - so-called quantitative easing (QE).
In November, the Bank of England said it would inject another £25bn, taking the total planned under QE to £200bn.
The Bank cut interest rates to 0.5% in March in an attempt to boost the recession-hit economy.
Under QE, the Bank of England prints money to buy assets from banks and other companies to stimulate the economy.
The bank is expected to wait until the current QE programme runs out in January before considering whether it should be expanded.
Responding to the decision, some analysts believe interest rates could remain at the current level for the foreseeable future.
The Bank of England recently warned that the recovery would be "slow and protracted" and that it would take months for the full impact of its policies to be felt.
The British Chambers of Commerce have accused the Bank's Monetary Policy Committee and the government for not going far enough to help recovery.
It also announced no changes to its programme of pumping newly-created money into the economy - so-called quantitative easing (QE).
In November, the Bank of England said it would inject another £25bn, taking the total planned under QE to £200bn.
The Bank cut interest rates to 0.5% in March in an attempt to boost the recession-hit economy.
Under QE, the Bank of England prints money to buy assets from banks and other companies to stimulate the economy.
The bank is expected to wait until the current QE programme runs out in January before considering whether it should be expanded.
Responding to the decision, some analysts believe interest rates could remain at the current level for the foreseeable future.
The Bank of England recently warned that the recovery would be "slow and protracted" and that it would take months for the full impact of its policies to be felt.
The British Chambers of Commerce have accused the Bank's Monetary Policy Committee and the government for not going far enough to help recovery.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: credit crunch, home loans, home loans-rates-UK, Quantitative Easing
# posted by Dr Search- Principal Consultant at the Search Clinic @ 2:50 PM 0 comments
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Wednesday, December 09, 2009
Half of borrowers rely on high cost loans to survive
Half of borrowers rely on high cost loans to survive, the Office for Fair Trading (OFT) has disclosed.
The figures come just a fortnight before Christmas, when consumers traditionally face a sharp rise in their outgoings – and it paves the way for borrowers to wake up with a financial hangover in the New Year.
The report highlighted where credit can be “damaging” when borrowers overstretch themselves and are left unable to repay the amount that they have borrowed.
It found 52 per cent are dependent on door step lending – which tends to focus on short-term, high cost loans. The interest rates found on these types of loan is typically higher than 50 per cent, but can extend to beyond 500 per cent.
And a quarter of these borrowers use the loans on a continuous basis to cope with their financial difficulties amid the recession.
Door step lending sees lenders offer unsecured loans– typically in the region of £300, which is repaid in installments to an agent who calls at the borrower’s home on a weekly basis.
As many as 26 per cent depend on credit cards while a further 19 per cent rely on store cards, according to the OFT’s report into high cost credit.
It suggested the total amount of credit was £228 billion in August 2008, reaching £230 billion in June 2009, before falling slightly in July and August to £229.5 billion.
The report suggested: “Consumers have reduced their expenditure and worked to rein in borrowing to protect themselves against the effects of the recession. It is clear however, that there is still a reasonable appetite for credit.”
The figures come just a fortnight before Christmas, when consumers traditionally face a sharp rise in their outgoings – and it paves the way for borrowers to wake up with a financial hangover in the New Year.
The report highlighted where credit can be “damaging” when borrowers overstretch themselves and are left unable to repay the amount that they have borrowed.
It found 52 per cent are dependent on door step lending – which tends to focus on short-term, high cost loans. The interest rates found on these types of loan is typically higher than 50 per cent, but can extend to beyond 500 per cent.
And a quarter of these borrowers use the loans on a continuous basis to cope with their financial difficulties amid the recession.
Door step lending sees lenders offer unsecured loans– typically in the region of £300, which is repaid in installments to an agent who calls at the borrower’s home on a weekly basis.
As many as 26 per cent depend on credit cards while a further 19 per cent rely on store cards, according to the OFT’s report into high cost credit.
It suggested the total amount of credit was £228 billion in August 2008, reaching £230 billion in June 2009, before falling slightly in July and August to £229.5 billion.
The report suggested: “Consumers have reduced their expenditure and worked to rein in borrowing to protect themselves against the effects of the recession. It is clear however, that there is still a reasonable appetite for credit.”
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: credit crunch, loans rates, recession, sub prime loans, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:56 AM 0 comments
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Tuesday, December 08, 2009
Students disappointed by broken loans principle
Each September the student loans rate changes, based on the Retail Price Index (RPI) rate from the previous March.
This March’s RPI was -0.4% however most students who could have expected to see student loan balances reduced in line with this will be disappointed. Only students who took out their loan pre 2008 will actually see their balances reduced by 0.4%. For students who took out the loan post 2008 the rate will be dropped from 1.5% to 0% this September.
As student loans were meant to linked to inflation, and this principle is not been followed, those students who took the loan out after 2008 are now out of pocket as their purchasing power is dilapidated. The monthly payments for students will remain at the same rate, as borrowers are required to pay back nine percent of their earnings over £15,000; so as the interest rate has been reduced to zero, the balance will reduce at a greater rate.
As student loans were meant to linked to inflation, and this principle is not been followed, those students who took the loan out after 2008 are now out of pocket as their purchasing power is dilapidated. The monthly payments for students will remain at the same rate, as borrowers are required to pay back nine percent of their earnings over £15,000; so as the interest rate has been reduced to zero, the balance will reduce at a greater rate.
This is still not good enough for some students who believe that the principle should apply and that they should therefore benefit from this deflationary period by seeing the balances automatically reduced.
Deflation is now even higher than in March, sub one percent, so applying this principle to all student loans could put even more pressure on the economy in recession and the whole student loans system, as it could see the taxpayer funding further, greater reductions next year, and who knows about years to come.
Deflation is now even higher than in March, sub one percent, so applying this principle to all student loans could put even more pressure on the economy in recession and the whole student loans system, as it could see the taxpayer funding further, greater reductions next year, and who knows about years to come.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, credit crunch, loans, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:48 AM 0 comments
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Monday, December 07, 2009
Loans comparison websites can be misleading
Loans comparison websites, used by millions of consumers every month, are "misleading" because they give greater prominence to companies willing to pay their fees, according to industry experts.
They warn that families who rely on these websites could miss out on hundreds of pounds on the best credit card and loans deals.
Price comparison websites have increased in popularity during the recession as consumers use them to hunt down the best possible deals, with over 22 million people using one of these sites in the last three month.
However, many consumers do not realise that comparison sites make their money by earning a commission every time a consumer "clicks through" to a financial service provider's website to apply for a bank account, loan or insurance product.
On average the commission equates to about £40 for an insurance deal, with it rising to £150 on the most profitable loans. Some price comparison sites only list a selection of deals, excluding those companies that will not pay a commission.
The majority of sites attempt to list all providers, regardless of whether they pay a commission, but do not display the commission-free deals on their home page, or they make it quite difficult to find the commission-free deals.
Because most of the sites refuse to list deals that will not pay a fee on their home page it is very difficult for consumers to see the best possible deals.
For instance, one of the highest rates available on an easy access savings account with a £10,000 minimum deposit is The Ulster Bank's Pathway account, paying 3.6 per cent for the first six months.
However, it is not listed on the first page of Moneysupermarket.com's easy access accounts or uSwitch's initial search results for instant access accounts.
The deal is on both of these comparison sites, but consumers need to unclick the "accounts available on uSwitch" before it appears and users need to exit the "best sellers page" on moneysupermarket and conduct a full search. Even after doing that, users need to scroll down past the "sponsored products" to the "full results" to see it.
The Financial Services Authority has given comparison websites a clean bill of health, but the Office of Fair Trading earlier this year started an investigation to ascertain whether consumers were being misled.
It is understood that the OFT has concerns that the sites too often skew certain aspects of a deal – such as high excess amounts on insurance deals – in order to present some products in the most appealing light.
They warn that families who rely on these websites could miss out on hundreds of pounds on the best credit card and loans deals.
Price comparison websites have increased in popularity during the recession as consumers use them to hunt down the best possible deals, with over 22 million people using one of these sites in the last three month.
However, many consumers do not realise that comparison sites make their money by earning a commission every time a consumer "clicks through" to a financial service provider's website to apply for a bank account, loan or insurance product.
On average the commission equates to about £40 for an insurance deal, with it rising to £150 on the most profitable loans. Some price comparison sites only list a selection of deals, excluding those companies that will not pay a commission.
The majority of sites attempt to list all providers, regardless of whether they pay a commission, but do not display the commission-free deals on their home page, or they make it quite difficult to find the commission-free deals.
Because most of the sites refuse to list deals that will not pay a fee on their home page it is very difficult for consumers to see the best possible deals.
For instance, one of the highest rates available on an easy access savings account with a £10,000 minimum deposit is The Ulster Bank's Pathway account, paying 3.6 per cent for the first six months.
However, it is not listed on the first page of Moneysupermarket.com's easy access accounts or uSwitch's initial search results for instant access accounts.
The deal is on both of these comparison sites, but consumers need to unclick the "accounts available on uSwitch" before it appears and users need to exit the "best sellers page" on moneysupermarket and conduct a full search. Even after doing that, users need to scroll down past the "sponsored products" to the "full results" to see it.
The Financial Services Authority has given comparison websites a clean bill of health, but the Office of Fair Trading earlier this year started an investigation to ascertain whether consumers were being misled.
It is understood that the OFT has concerns that the sites too often skew certain aspects of a deal – such as high excess amounts on insurance deals – in order to present some products in the most appealing light.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: credit crunch, Loan calculator, loans, loans rates, sub prime loans, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 2:09 PM 0 comments
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Friday, December 04, 2009
Lenders warned not to mislead customers over debts
Lenders must not mislead borrowers that their debts are enforceable, when in fact they are not, the Office of Fair Trading (OFT) says.
The regulator also says many debtors have, in turn, been misled about their ability to escape their debts.
The OFT's comments are part of an intervention in a series of High Court test cases about the enforceability of debts under the Consumer Credit Act.
The outcome could affect thousands of potential courts cases.
The OFT has supplied its draft guidance on part of the Consumer Credit Act (CCA) to Judge Waksman, who is hearing the cases in Manchester.
"The OFT's decision to prepare guidance at this time has primarily resulted from our concern that debtors are being misled as to the meaning and interpretation of sections 77-79 [of the Act] in particular," the OFT said in a letter to the judge.
"And on the other hand concern that some creditors appear not to understand the nature and extent of their obligations under these sections," it added.
The 12 test cases at the High Court in Manchester are aimed at settling a number of contentious issues about the interpretation of the law.
The general position is that lenders who wish to chase defaulting borrowers for the repayment of their loans have to comply with a number of obligations.
One of them is that under sections 77-79 of the Act they should supply a "true copy" of the original signed loan agreement within 12 days of the borrower asking for it. If they do not then the debt is unenforceable until such time as the copy can be provided.
"Unfortunately, consumers have often been given an exaggerated expectation of what the creditor or owner must do in order to comply with an information request, as a result of misleading claims by claims management companies and inaccurate information on the internet," the OFT's draft guidance says.
"As a result, numerous disputes have been generated over whether a request has properly been made, whether the duties have been complied with and whether as a consequence the agreement can be enforced," the OFT adds.
The OFT's guidance clearly disagrees with some of the arguments that have been put forward by some claims management companies on behalf of their clients.
In particular, the regulator points out that it is perfectly legal and proper for a bank that has lost the original loan agreement, or whose copy is illegible, to supply an accurate "reconstituted" version instead, to show that the agreement did in fact include the information specified by the Act.
"It is important to remember that the purpose of these sections is to provide information to consumers, not to provide a method for consumers to avoid paying their debts," the OFT says.
But the OFT goes on to advise that lenders would be acting unfairly, and potentially in breach of their consumer credit licenses, if they misled borrowers by:
• hiding or disguising the fact that there was never a proper signed agreement in the first place
• providing only a copy of the current terms and conditions, not the original ones
• confusing the borrower as to who they should send an information request after selling the debt to a debt collection company
• failing to preserve data so the borrower cannot be given an up to date statement of account.
A recent High Court case, between Philip McGuffick and the Royal Bank of Scotland, established that even if a debt is temporarily unenforceable, the lender can still mark a customer's record with a credit reference agency as being in default, because the debt itself has not been extinguished.
The OFT agrees with this, but its draft guidance goes against the grain of other conclusions of that case.
The judge said it was legal for lenders to take other steps to get their money back, such as demanding repayment of the loan, issuing a default notice, threatening legal action, and even starting legal proceedings.
But the OFT said it might take a dim view of these tactics.
"For the purposes of considering whether a company is fit to hold a consumer credit licence, the OFT can take into account any practices which we consider to be oppressive, misleading or improper, whether they are unlawful or not," an OFT official said.
The OFT's draft guidance says: "No communications or requests for payment should in any way threaten court action or other enforcement of the debt where the creditor or owner is aware that it cannot and will not be entitled so to enforce the agreement."
"The creditor or owner should make it clear in communications to the debtor that the debt is in fact unenforceable," it adds.
The guidance goes on to warn that: "To mislead debtors into making payment may in certain circumstances amount to an unfair commercial practice under the Consumer Protection from Unfair Trading Regulations 2008."
The OFT has delayed publication of its draft guidance until the outcome of the Manchester High Court hearings, whose judgements are expected to be delivered in January 2010.
The regulator also says many debtors have, in turn, been misled about their ability to escape their debts.
The OFT's comments are part of an intervention in a series of High Court test cases about the enforceability of debts under the Consumer Credit Act.
The outcome could affect thousands of potential courts cases.
The OFT has supplied its draft guidance on part of the Consumer Credit Act (CCA) to Judge Waksman, who is hearing the cases in Manchester.
"The OFT's decision to prepare guidance at this time has primarily resulted from our concern that debtors are being misled as to the meaning and interpretation of sections 77-79 [of the Act] in particular," the OFT said in a letter to the judge.
"And on the other hand concern that some creditors appear not to understand the nature and extent of their obligations under these sections," it added.
The 12 test cases at the High Court in Manchester are aimed at settling a number of contentious issues about the interpretation of the law.
The general position is that lenders who wish to chase defaulting borrowers for the repayment of their loans have to comply with a number of obligations.
One of them is that under sections 77-79 of the Act they should supply a "true copy" of the original signed loan agreement within 12 days of the borrower asking for it. If they do not then the debt is unenforceable until such time as the copy can be provided.
"Unfortunately, consumers have often been given an exaggerated expectation of what the creditor or owner must do in order to comply with an information request, as a result of misleading claims by claims management companies and inaccurate information on the internet," the OFT's draft guidance says.
"As a result, numerous disputes have been generated over whether a request has properly been made, whether the duties have been complied with and whether as a consequence the agreement can be enforced," the OFT adds.
The OFT's guidance clearly disagrees with some of the arguments that have been put forward by some claims management companies on behalf of their clients.
In particular, the regulator points out that it is perfectly legal and proper for a bank that has lost the original loan agreement, or whose copy is illegible, to supply an accurate "reconstituted" version instead, to show that the agreement did in fact include the information specified by the Act.
"It is important to remember that the purpose of these sections is to provide information to consumers, not to provide a method for consumers to avoid paying their debts," the OFT says.
But the OFT goes on to advise that lenders would be acting unfairly, and potentially in breach of their consumer credit licenses, if they misled borrowers by:
• hiding or disguising the fact that there was never a proper signed agreement in the first place
• providing only a copy of the current terms and conditions, not the original ones
• confusing the borrower as to who they should send an information request after selling the debt to a debt collection company
• failing to preserve data so the borrower cannot be given an up to date statement of account.
A recent High Court case, between Philip McGuffick and the Royal Bank of Scotland, established that even if a debt is temporarily unenforceable, the lender can still mark a customer's record with a credit reference agency as being in default, because the debt itself has not been extinguished.
The OFT agrees with this, but its draft guidance goes against the grain of other conclusions of that case.
The judge said it was legal for lenders to take other steps to get their money back, such as demanding repayment of the loan, issuing a default notice, threatening legal action, and even starting legal proceedings.
But the OFT said it might take a dim view of these tactics.
"For the purposes of considering whether a company is fit to hold a consumer credit licence, the OFT can take into account any practices which we consider to be oppressive, misleading or improper, whether they are unlawful or not," an OFT official said.
The OFT's draft guidance says: "No communications or requests for payment should in any way threaten court action or other enforcement of the debt where the creditor or owner is aware that it cannot and will not be entitled so to enforce the agreement."
"The creditor or owner should make it clear in communications to the debtor that the debt is in fact unenforceable," it adds.
The guidance goes on to warn that: "To mislead debtors into making payment may in certain circumstances amount to an unfair commercial practice under the Consumer Protection from Unfair Trading Regulations 2008."
The OFT has delayed publication of its draft guidance until the outcome of the Manchester High Court hearings, whose judgements are expected to be delivered in January 2010.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Loan calculator, loans, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 11:52 AM 0 comments
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Thursday, December 03, 2009
Bank customers prefer bounce payments rather than be overdrawn
Nearly half of consumers would like banks to block payments that would take them into an unauthorised overdraft, a survey has showed.
Around 46pc of people said they would prefer banks not to process payments if doing so took them into the red or breached their agreed overdraft limit, according to consumer group Which?.
Only 38pc of people said they would prefer banks to honour the payment and charge them.
The research comes after the Supreme Court ruled last week that unauthorised overdraft charges were not subject to regulation by the Office of Fair Trading under unfair contract rules.
The ruling means there is little hope that the millions of people who have paid the charges will be given refunds.
Which? called on the banks to make unauthorised overdrafts an optional service and to make their charges fairer.
Phil Jones, Which? personal finance campaigner, said: "Different people use their current accounts in different ways so banks shouldn't adopt a one size fits all approach to overdraft charges.
Many current account holders are effectively being lent money that they haven't asked for and being charged through the nose for it.
"Such an expensive service shouldn't be forced on people who don't want it as it can easily lead to financial difficulty. We want banks to show they're willing to respond to what their customers want by only making unauthorised overdrafts available to those who ask for them."
Customers who go into unauthorised overdraft or breach their agreed limit can be charged as much as £35 or more for a single bounced payment. Campaigners claim the actual cost to the banks could be as little as £2.50.
The charges generate around £2.6bn of revenue a year for banks and are used to subsidise free banking for other consumers.
But there could be problems with Which?'s idea that payments could be blocked, as certain payments, such as cheques which have been guaranteed with a cheque guarantee card, have to be honoured by banks.
The British Bankers' Association also pointed out that by blocking payments, banks may simply be creating problems down the line for consumers.
For example, if a direct debit payment to a utility company was blocked, the utility company would then take action against the consumer.
Around 46pc of people said they would prefer banks not to process payments if doing so took them into the red or breached their agreed overdraft limit, according to consumer group Which?.
Only 38pc of people said they would prefer banks to honour the payment and charge them.
The research comes after the Supreme Court ruled last week that unauthorised overdraft charges were not subject to regulation by the Office of Fair Trading under unfair contract rules.
The ruling means there is little hope that the millions of people who have paid the charges will be given refunds.
Which? called on the banks to make unauthorised overdrafts an optional service and to make their charges fairer.
Phil Jones, Which? personal finance campaigner, said: "Different people use their current accounts in different ways so banks shouldn't adopt a one size fits all approach to overdraft charges.
Many current account holders are effectively being lent money that they haven't asked for and being charged through the nose for it.
"Such an expensive service shouldn't be forced on people who don't want it as it can easily lead to financial difficulty. We want banks to show they're willing to respond to what their customers want by only making unauthorised overdrafts available to those who ask for them."
Customers who go into unauthorised overdraft or breach their agreed limit can be charged as much as £35 or more for a single bounced payment. Campaigners claim the actual cost to the banks could be as little as £2.50.
The charges generate around £2.6bn of revenue a year for banks and are used to subsidise free banking for other consumers.
But there could be problems with Which?'s idea that payments could be blocked, as certain payments, such as cheques which have been guaranteed with a cheque guarantee card, have to be honoured by banks.
The British Bankers' Association also pointed out that by blocking payments, banks may simply be creating problems down the line for consumers.
For example, if a direct debit payment to a utility company was blocked, the utility company would then take action against the consumer.
Equally, writing a cheque knowing that it will not be honoured is technically a criminal offence.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, Loan calculator, sub prime loans, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 9:45 AM 0 comments
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Wednesday, December 02, 2009
500,000 borrowers seek debt advice in three months
The number of people contacting Citizens Advice for help with debts soared by a fifth during 2009.
The charity said it dealt with 573,000 inquiries from people struggling to keep up with their borrowing during the three months to the end of September, 21pc more than during the same period of the previous year.
Debt problems are now the single biggest topic on which it offers advice and the charity has handled 3.06 million inquiries on the subject since the beginning of the recession in April last year.
Benefits account for the second most common issue on which people need help at 2.71 million, followed by employment and housing problems at 844,000 and 633,000 respectively.
There was a 28pc jump in people contacting the charity because they had fallen behind with their mortgage or a secured loan during the third quarter, compared with the same period of 2008, while there was a 38pc rise in people with fuel debts.
The number of benefit problems the charity dealt with were 21pc higher than a year ago, while employment problems are up by 17pc year-on-year.
The group is urging people to budget carefully over Christmas, to avoid starting 2010 with a debt hangover.
It is distributing leaflets giving people guidance on how to budget for the festive season.
The charity said it dealt with 573,000 inquiries from people struggling to keep up with their borrowing during the three months to the end of September, 21pc more than during the same period of the previous year.
Debt problems are now the single biggest topic on which it offers advice and the charity has handled 3.06 million inquiries on the subject since the beginning of the recession in April last year.
Benefits account for the second most common issue on which people need help at 2.71 million, followed by employment and housing problems at 844,000 and 633,000 respectively.
There was a 28pc jump in people contacting the charity because they had fallen behind with their mortgage or a secured loan during the third quarter, compared with the same period of 2008, while there was a 38pc rise in people with fuel debts.
The number of benefit problems the charity dealt with were 21pc higher than a year ago, while employment problems are up by 17pc year-on-year.
The group is urging people to budget carefully over Christmas, to avoid starting 2010 with a debt hangover.
It is distributing leaflets giving people guidance on how to budget for the festive season.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, home loans, Loan calculator, loans, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 10:21 AM 0 comments
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Tuesday, December 01, 2009
UK consumers repay record levels of debt
Consumers repaid a record level of unsecured loans and credit card debt during October as they continued to focus on improving their finances in the face of the recession.
The figures will reinforce suggestions that Britain will be slow to emerge from its worst recession in decades as the cost of repaying multi-billion bank bailouts weighs on businesses and consumers.
Households reduced their outstanding credit card, loan and overdraft debt by £579 million during the month, the biggest contraction in unsecured lending since Bank of England records began in their current format in 1993.
It was also only the sixth time on record that repayments for consumer credit have outstripped new borrowing.
Hopes that the global economy is heading for a robust recovery have been shaken in recent days on fears that Dubai could struggle to repay debts used to turn the tiny state into a world powerhouse.
The figures will reinforce suggestions that Britain will be slow to emerge from its worst recession in decades as the cost of repaying multi-billion bank bailouts weighs on businesses and consumers.
Households reduced their outstanding credit card, loan and overdraft debt by £579 million during the month, the biggest contraction in unsecured lending since Bank of England records began in their current format in 1993.
It was also only the sixth time on record that repayments for consumer credit have outstripped new borrowing.
Hopes that the global economy is heading for a robust recovery have been shaken in recent days on fears that Dubai could struggle to repay debts used to turn the tiny state into a world powerhouse.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Aussie loans rates, consolidate debt loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 10:15 AM 0 comments
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Monday, November 30, 2009
Record fall in consumer borrowing says Bank of England
Consumer borrowing - excluding mortgages - recorded its biggest month on month fall since Bank of England records began in 1993.
This adds further evidence to the likely trend of people paying off loans rather than saving more during a time of low interest rates.
Unsecured loans fell by £713m in October compared with September.
But the number of mortgages approved for house purchases rose for the 11th month in a row in October.
The number of homeowners remortgaging remains subdued.
Debts repaid
Borrowing on credit cards rose by £134m in October compared with September, but was more than offset by the record fall of £713m in other forms of consumer credit such as bank loans, loans for cars, and hire purchase agreements.
It was the fourth month in a row that people repaid more than they took out in non mortgage borrowing.
The total stock of outstanding unsecured loans stood at £228bn - a similar level to January 2008.
Separate figures from the Building Societies Association (BSA) showed that there was a net outflow of savers' funds for the eighth consecutive month.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
This adds further evidence to the likely trend of people paying off loans rather than saving more during a time of low interest rates.
Unsecured loans fell by £713m in October compared with September.
But the number of mortgages approved for house purchases rose for the 11th month in a row in October.
The number of homeowners remortgaging remains subdued.
Debts repaid
Borrowing on credit cards rose by £134m in October compared with September, but was more than offset by the record fall of £713m in other forms of consumer credit such as bank loans, loans for cars, and hire purchase agreements.
It was the fourth month in a row that people repaid more than they took out in non mortgage borrowing.
The total stock of outstanding unsecured loans stood at £228bn - a similar level to January 2008.
Separate figures from the Building Societies Association (BSA) showed that there was a net outflow of savers' funds for the eighth consecutive month.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: credit crunch, loans, refinancing rates, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:03 PM 0 comments
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Friday, November 27, 2009
Credit card debts are a major problem in the UK
Everyone has a credit card and many carry a large balance.
The interest rate on a credit card balance is usually between 20-30% APR. These high interest rates make it difficult for people to pay down their debt when only making the minimum payment.
Credit Card Consolidation
Many factors which results in high credit card debt. With debt consolidation services you will pay significantly less and have more money for yourself each month. You will also receive the benefit of credit card debt consolidation. Making all of your unsecured debt into one simple payment. You will pay off your credit debt much faster. This is not a loan. No home ownership required is ever required.
Debt Consolidation
Debt management plans are very common and are used by thousands of people each year to deal with large amounts of unsecured debt. This system is also referred to as debt consolidation because it involves consolidating all your debts into one plan with only one payment.
Under a payment plan of this sort, a debt management company sets up new arrangements with all your creditors, so that you have less money to find each month. You then make a fixed payment to the debt company every month until the date at which you become debt free again.
Credit Card Consolidation
Many factors which results in high credit card debt. With debt consolidation services you will pay significantly less and have more money for yourself each month. You will also receive the benefit of credit card debt consolidation. Making all of your unsecured debt into one simple payment. You will pay off your credit debt much faster. This is not a loan. No home ownership required is ever required.
Debt Consolidation
Debt management plans are very common and are used by thousands of people each year to deal with large amounts of unsecured debt. This system is also referred to as debt consolidation because it involves consolidating all your debts into one plan with only one payment.
Under a payment plan of this sort, a debt management company sets up new arrangements with all your creditors, so that you have less money to find each month. You then make a fixed payment to the debt company every month until the date at which you become debt free again.
As well as having the effect of stopping the daily calls by creditors, a plan of this sort is clearly very simple to organize and keep track of.
To set up a debt management plan you must have an income and be able to afford a reasonable amount for the monthly payment. If your situation is such that you cannot stretch to that, then debt settlement could be the solution for you.
To set up a debt management plan you must have an income and be able to afford a reasonable amount for the monthly payment. If your situation is such that you cannot stretch to that, then debt settlement could be the solution for you.
This is a radical technique that ends up with a lot of your debts actually being written off. It is only by seriously reducing the core amount that you owe that a really serious debt situation can be turned
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, credit crunch, home loans, refinancing rates, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 5:50 PM 0 comments
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Thursday, November 26, 2009
Overdraft charges- consumers back Supreme Court ruling
The majority of UK consumers are pleased that the banks won a surprise court victory in their battle over unauthorised overdraft charges, it has emerged.
The Supreme Court ruled yesterday that the charges are not subject to regulation by the Office of Fair Trading (OFT) under unfair contract rules.
The ruling means that millions of people who have paid the charges will not be entitled to refunds, but it also lifts the threat against free banking.
Industry commentators had warned that if the banks lost the lucrative income stream from the charges they would look for other ways to recoup it, such as through imposing a flat monthly fee on current account customers or charging for every transaction.
A survey of 3,500 people following the court's decision found that 51pc of people thought the current charging system was fair, saying they objected to subsidising people who could not manage their money. A further 5pc said someone had to pay for free banking in Britain.
But 20pc of people said they thought the charges were too high and penalised the poorest households most, while 24pc thought people were being ripped off by the banks.
Customers who go into unauthorised overdraft or breach their agreed limit can be charged as much as £35 or more for a single bounced payment. Campaigners claim the actual cost to the banks could be as little as £2.50. The charges generate around £2.6bn of revenue a year for banks, and are used to subsidise free banking for other consumers.
The High Court test case was bought by the OFT and seven banks and a building society after thousands of consumers started to reclaim the charges. More than 1m claims were put on hold until the outcome of the case was known.
Consumer group Which? said people were now unlikely to get the charges refunded and it warned them against using claims handling firms who say they could still get them their money back.
The Supreme Court ruled yesterday that the charges are not subject to regulation by the Office of Fair Trading (OFT) under unfair contract rules.
The ruling means that millions of people who have paid the charges will not be entitled to refunds, but it also lifts the threat against free banking.
Industry commentators had warned that if the banks lost the lucrative income stream from the charges they would look for other ways to recoup it, such as through imposing a flat monthly fee on current account customers or charging for every transaction.
A survey of 3,500 people following the court's decision found that 51pc of people thought the current charging system was fair, saying they objected to subsidising people who could not manage their money. A further 5pc said someone had to pay for free banking in Britain.
But 20pc of people said they thought the charges were too high and penalised the poorest households most, while 24pc thought people were being ripped off by the banks.
Customers who go into unauthorised overdraft or breach their agreed limit can be charged as much as £35 or more for a single bounced payment. Campaigners claim the actual cost to the banks could be as little as £2.50. The charges generate around £2.6bn of revenue a year for banks, and are used to subsidise free banking for other consumers.
The High Court test case was bought by the OFT and seven banks and a building society after thousands of consumers started to reclaim the charges. More than 1m claims were put on hold until the outcome of the case was known.
Consumer group Which? said people were now unlikely to get the charges refunded and it warned them against using claims handling firms who say they could still get them their money back.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: home loans, interest rates, loans rates, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 5:43 PM 0 comments
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Wednesday, November 25, 2009
British banks win landmark overdraft ruling
Britain's Supreme Court has ruled in favour of the High Street banks in a row over overdraft fees, delivering a blow for thousands who had hoped to recoup charges.
Seven major banks and a building society had challenged High Court and Court of Appeal decisions that the charges come under "unfair contract" rules and are therefore subject to regulation by the Office of Fair Trading.
Today's result was awaited by tens of thousands of customers whose refund claims have been frozen while the test case went through the courts.
Handing down the unanimous ruling, Lord Phillips, president of the Supreme Court, said: "It may be open to the Office of Fair Trading to assess the charge under other criteria."
Customers who go into unauthorised overdraft or breach their agreed limit can be charged as much as £35 or more for a single bounced payment. Campaigners claim the actual cost to the banks could be as little as £2.50.
If the banks had lost the test case, it could have cost them £2.6bn a year in lost revenue and led to their having to make refunds of up to £1bn.
Before refund claims were frozen, banks had already paid out more than £559m to customers who complained about "rip-off" overdraft charges.
Although many of the high street banks have already changed the structure of the fees they charge people who go into the red, with or without permission. Almost half of current accounts are already charge banking customers a monthly fee of as much as £25.
The test case to decide the legal issues thrown up by the dispute was brought jointly by the OFT and Abbey, Barclays, Clydesdale, Halifax Bank of Scotland and Lloyds TSB, which are now part of the same group, HSBC, Royal Bank of Scotland Group and Nationwide Building Society.
Lord Walker, one of the five Justices of the Supreme Court who heard the case, pointed out that the outcome of the appeal "may cause disappointment and indeed dismay to a very large number of bank customers who feel that they have been subjected to unfairly high charges in respect of unauthorised overdrafts".
But he said that as Lord Phillips had explained it was not the end of the matter and Parliament "may wish to consider the matter further".
Lady Hale said: "The banks may not be the most popular institutions in the country at present, but that does not mean that their methods of charging for retail banking services are necessarily unfair when reviewed as a whole."
Explaining the reasons for allowing the appeal, Lord Phillips said that the relevant charges are, as the banks argued, charges that require their customers to agree to pay as part of the price or remuneration for the package of services that they agree to supply in exchange.
Seven major banks and a building society had challenged High Court and Court of Appeal decisions that the charges come under "unfair contract" rules and are therefore subject to regulation by the Office of Fair Trading.
Today's result was awaited by tens of thousands of customers whose refund claims have been frozen while the test case went through the courts.
Handing down the unanimous ruling, Lord Phillips, president of the Supreme Court, said: "It may be open to the Office of Fair Trading to assess the charge under other criteria."
Customers who go into unauthorised overdraft or breach their agreed limit can be charged as much as £35 or more for a single bounced payment. Campaigners claim the actual cost to the banks could be as little as £2.50.
If the banks had lost the test case, it could have cost them £2.6bn a year in lost revenue and led to their having to make refunds of up to £1bn.
Before refund claims were frozen, banks had already paid out more than £559m to customers who complained about "rip-off" overdraft charges.
Although many of the high street banks have already changed the structure of the fees they charge people who go into the red, with or without permission. Almost half of current accounts are already charge banking customers a monthly fee of as much as £25.
The test case to decide the legal issues thrown up by the dispute was brought jointly by the OFT and Abbey, Barclays, Clydesdale, Halifax Bank of Scotland and Lloyds TSB, which are now part of the same group, HSBC, Royal Bank of Scotland Group and Nationwide Building Society.
Lord Walker, one of the five Justices of the Supreme Court who heard the case, pointed out that the outcome of the appeal "may cause disappointment and indeed dismay to a very large number of bank customers who feel that they have been subjected to unfairly high charges in respect of unauthorised overdrafts".
But he said that as Lord Phillips had explained it was not the end of the matter and Parliament "may wish to consider the matter further".
Lady Hale said: "The banks may not be the most popular institutions in the country at present, but that does not mean that their methods of charging for retail banking services are necessarily unfair when reviewed as a whole."
Explaining the reasons for allowing the appeal, Lord Phillips said that the relevant charges are, as the banks argued, charges that require their customers to agree to pay as part of the price or remuneration for the package of services that they agree to supply in exchange.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, home loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 5:40 PM 0 comments
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Tuesday, November 24, 2009
Credit repairs scams- how to avoid them
With the credit crunch it's easy to make mistakes balancing finances- but the effects could be even worse.
Pressing credit cards bills, mortgage payments and direct debits all combine too frequently whilst the income payments seem to get lower or take longer than needed.
We are all aware of the cliche "desperate times call for desperate measures" but we do not want our desperation to make the situation even worse for us. Do not trust "quick fix" method because it may only lead you even more buried in debt. In turn, your credit score will even be pulled lower than it already is. This may prevent you from recovering from your debt, ever.
It is important that you recognize scams. There are legitimate creditors who do offer to get you out of debt but they would never promise anything in advance. Scams usually promise to clean your debt instantly or very quickly for a fee. They pose as legitimate credit report service that will only take hundreds of your money and vanish. They pose ads on television, radio and the newspaper. They never tell you much and sometimes, they will only advise you to file for bankruptcy after you pay them.
Since there are legitimate companies who do offer to repair your credit, what you can do is watch for the telltale signs that what you are responding to is a fraud. Most fraudulent credit report service will want you to pay their offered services even before they act on it. They would never advise you of your legal rights and if they do, they would omit some important details because they are only doing it for a show. After all, they would like to convince you that they are legitimate.
Once you tell them to "fix my credit score" they would not recommend that you contact a credit bureau directly but they would offer to do it for you. Sometimes, they would suggest that you make up a "new" report by applying for a different Employer Identification Number instead of your Social Security number.
It is important that you recognize scams. There are legitimate creditors who do offer to get you out of debt but they would never promise anything in advance. Scams usually promise to clean your debt instantly or very quickly for a fee. They pose as legitimate credit report service that will only take hundreds of your money and vanish. They pose ads on television, radio and the newspaper. They never tell you much and sometimes, they will only advise you to file for bankruptcy after you pay them.
Since there are legitimate companies who do offer to repair your credit, what you can do is watch for the telltale signs that what you are responding to is a fraud. Most fraudulent credit report service will want you to pay their offered services even before they act on it. They would never advise you of your legal rights and if they do, they would omit some important details because they are only doing it for a show. After all, they would like to convince you that they are legitimate.
Once you tell them to "fix my credit score" they would not recommend that you contact a credit bureau directly but they would offer to do it for you. Sometimes, they would suggest that you make up a "new" report by applying for a different Employer Identification Number instead of your Social Security number.
They would even advise that you dispute everything in your report or go to the extreme of creating a new credit identity. Creating a new identity is illegal and you will commit fraud if you do. This will only subject you to prosecution if you are caught. Do everything the legal way.
If you would like some free, friendly finance help, please just click here now.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, home loans, loans, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 9:32 AM 0 comments
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Monday, November 23, 2009
Loans- choosing a debt consolidation loan
Nearly anyone is susceptible to get behind on their monthly payments and obligations to lenders, which is when a fresh start loan can be of the maximum benefit for most borrowers.
Perhaps you have experienced a recent illness, injury, or even death in the family and have gotten behind on your bills. No matter what reason you have for finding yourself in arrearage on your bills, a debt consolidation loan can allow you to pay off your existing creditors and avoid bankruptcy or even foreclosure.
When a borrower gets behind on their loan payments, credit card payments, or other bills, what follows is never pretty. It seems that a constant and persistent stream of calls from creditors becomes very intrusive and can be very stressful. To make matters worse, interest charges continue to accumulate on the bills that you have due, or your accounts are subject to late payment penalties or other charges.
When a borrower gets behind on their loan payments, credit card payments, or other bills, what follows is never pretty. It seems that a constant and persistent stream of calls from creditors becomes very intrusive and can be very stressful. To make matters worse, interest charges continue to accumulate on the bills that you have due, or your accounts are subject to late payment penalties or other charges.
For more information on debt consolidation loans, please click here now
A debt consolidation loan will allow you to put all of these dreadful circumstances into the past by allowing you to combine all of the current payments and debts that you owe into a single loan that features one easy-to-handle monthly payment that is based on your ability to repay your creditors.
Finances are usually written for £25,000 or less, but can be more depending on your particular needs and your financial situation at the time of the application for consolidation.
The process of receiving your finance is a streamlined and expedient one in most instances. Many borrowers are happy to find that within just a week or so, they have completed the loan application process and received funding to get a fresh start.
The process of receiving your finance is a streamlined and expedient one in most instances. Many borrowers are happy to find that within just a week or so, they have completed the loan application process and received funding to get a fresh start.
The payment that you will be required to make will be less than the total of the combined payments you are making to many lenders right now, which allows you to keep more of the income that you bring home from your job to take care of the many expenses of life (without running up more credit card or loan debt).
Your finance can be secured or unsecured, and the type that you take can have a big impact on the amount of interest that you will be charged for the life of your loan. The secured debt consolidation loan (collateral required) is the cheaper of the two types of loans for borrowers with all types of credit. The unsecured debt consolidation loan (no collateral is required) is more expensive in terms of interest.
The secured debt consolidation loan is usually the best choice for homeowners who want to save money on interest charges. The unsecured debt consolidation loan is the ideal loan instrument for those borrowers who do not wish to risk their assets to secure funding for the loan, or for those who do not own their own home or other asset of value.
Your finance can be secured or unsecured, and the type that you take can have a big impact on the amount of interest that you will be charged for the life of your loan. The secured debt consolidation loan (collateral required) is the cheaper of the two types of loans for borrowers with all types of credit. The unsecured debt consolidation loan (no collateral is required) is more expensive in terms of interest.
The secured debt consolidation loan is usually the best choice for homeowners who want to save money on interest charges. The unsecured debt consolidation loan is the ideal loan instrument for those borrowers who do not wish to risk their assets to secure funding for the loan, or for those who do not own their own home or other asset of value.
For more information on debt consolidation loans, please click here now
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, credit crunch, home loans, Loan calculator, loans, sub prime loans, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:03 PM 0 comments
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Friday, November 20, 2009
Banks are charging sneaky fees claims Which?
UK banks are still finding "sneaky ways" to make money out of people, the consumers' association Which? has found.
It claims the rate on authorised overdrafts is at its highest level since records began in the mid-1990s.
According to the latest Bank of England statistics, the average overdraft rate is 18.96%, although many of the big banks can charge considerably more.
Which? says that the rate for unauthorised overdrafts has fallen owing to a major court case.
It has accused banks of raising the rate on authorised overdrafts to make up the difference.
"It is like a balloon," says Phil Jones, of Which?. "When you push in one part, it comes out in another."
"So we see that the banks are consistently taking sneaky ways to make money out of people."
Many banks have reduced the rates on unauthorised overdrafts.
On 1 October, the Royal Bank of Scotland cut its charges. On 1 December, the Halifax will restructure the way it charges customers, which will benefit some people with an overdraft.
In relation to high rates on authorised overdrafts, the industry argues that its own costs remain stubbornly high.
The British Bankers' Association (BBA), which represents the banks, is reminding everyone that the cost of borrowing no longer tracks the Bank rate as it once did.
Instead banks have to borrow money on the more expensive wholesale market. The risk of borrowers defaulting is also higher than it was.
It claims the rate on authorised overdrafts is at its highest level since records began in the mid-1990s.
According to the latest Bank of England statistics, the average overdraft rate is 18.96%, although many of the big banks can charge considerably more.
Which? says that the rate for unauthorised overdrafts has fallen owing to a major court case.
It has accused banks of raising the rate on authorised overdrafts to make up the difference.
"It is like a balloon," says Phil Jones, of Which?. "When you push in one part, it comes out in another."
"So we see that the banks are consistently taking sneaky ways to make money out of people."
Many banks have reduced the rates on unauthorised overdrafts.
On 1 October, the Royal Bank of Scotland cut its charges. On 1 December, the Halifax will restructure the way it charges customers, which will benefit some people with an overdraft.
In relation to high rates on authorised overdrafts, the industry argues that its own costs remain stubbornly high.
The British Bankers' Association (BBA), which represents the banks, is reminding everyone that the cost of borrowing no longer tracks the Bank rate as it once did.
Instead banks have to borrow money on the more expensive wholesale market. The risk of borrowers defaulting is also higher than it was.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Bank of England, UK loans rates, uk recession
# posted by Dr Search- Principal Consultant at the Search Clinic @ 2:58 PM 0 comments
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Thursday, November 19, 2009
ECB slows emergency cash support
The European Central Bank (ECB) will scale back its liquidity measures for fear of fuelling inflation- despite rising unemployment.
ECB President Jean-Claude Trichet said some fiscal stimulus measures were no longer needed to the same extent.
He said any measures that pose "a threat to the achievement of price stability must be undone promptly and unequivocally".
The eurozone emerged from recession during the third quarter. Its annual inflation rate is currently 0.5%.
Back in June, eurozone inflation turned negative for the first time, falling to -0.1% after it was dragged down by lower energy and fuel prices.
In July 2008 it peaked at 4.1%, driven by the record oil prices at the time.
Crisis not over
Some economists have warned that the growth in the third quarter was purely driven by state aid, and fear the region will slip back into recession if it is removed.
Mr Trichet himself said that it is too early to declare the crisis over. "Recent financial developments have been more benign," he added. "However a significant volume of official support underlies these developments."
The central bank governor said he was keen to make sure the private sector does not become dependent on government, or central bank support.
He has already signalled that the bank is unlikely to renew its offer of 12-month bank loans after the third tranche in December.
Earlier this week, a second ECB council member also said the bank may offer fewer three-month and six-month loans next year.
ECB President Jean-Claude Trichet said some fiscal stimulus measures were no longer needed to the same extent.
He said any measures that pose "a threat to the achievement of price stability must be undone promptly and unequivocally".
The eurozone emerged from recession during the third quarter. Its annual inflation rate is currently 0.5%.
Back in June, eurozone inflation turned negative for the first time, falling to -0.1% after it was dragged down by lower energy and fuel prices.
In July 2008 it peaked at 4.1%, driven by the record oil prices at the time.
Crisis not over
Some economists have warned that the growth in the third quarter was purely driven by state aid, and fear the region will slip back into recession if it is removed.
Mr Trichet himself said that it is too early to declare the crisis over. "Recent financial developments have been more benign," he added. "However a significant volume of official support underlies these developments."
The central bank governor said he was keen to make sure the private sector does not become dependent on government, or central bank support.
He has already signalled that the bank is unlikely to renew its offer of 12-month bank loans after the third tranche in December.
Earlier this week, a second ECB council member also said the bank may offer fewer three-month and six-month loans next year.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: ECB, home loans, Quantitative Easing, recession, refinancing rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 2:53 PM 0 comments
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Wednesday, November 18, 2009
Loans comparison websites failing to win over consumers
UK consumers lack trust in loans comparison websites with one in four people saying they have been able to find better value financial products elsewhere, a survey has found.
Only three out of 10 people said they trusted the sites, which give quotes on products such as insurance, credit cards and mortgages, to find the best price available for them, according to Which? Money.
Two thirds of those questioned also thought they would be presented with the products that would make the websites the most money through commission. One in four people said they did not go on to buy through the sites because they had been able to find a cheaper quote themselves.
Overall, the survey found that none of the comparison sites scored a customer satisfaction rating of more than 50 per cent, lower than for any other financial product or service the group looks at.
Only three out of 10 people said they trusted the sites, which give quotes on products such as insurance, credit cards and mortgages, to find the best price available for them, according to Which? Money.
Two thirds of those questioned also thought they would be presented with the products that would make the websites the most money through commission. One in four people said they did not go on to buy through the sites because they had been able to find a cheaper quote themselves.
Overall, the survey found that none of the comparison sites scored a customer satisfaction rating of more than 50 per cent, lower than for any other financial product or service the group looks at.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Loan calculator, loans, loans rates, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 2:50 PM 0 comments
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Tuesday, November 17, 2009
Student loans delay- universities have to bail out students
Three quarters of universities in England have been forced to bail out students following huge delays to loans and grants.
On average, institutions have paid £44,000 each in emergency funding to students left without money for rent, books and food.
Tens of thousands are still waiting for their first maintenance payments as the Student Loans Company (SLC) struggles to cope with record demand for funding.
Applications are believed to have been fuelled by the recession and a growth in the number of students starting university in 2009.
The BBC surveyed 58 universities and found 49 had been forced to make more hardship payments this term compared with the same period in 2008. Some 43 institutions attributed the rise to the loans crisis.
Portsmouth University has paid £80,000 to students waiting for loans and grants.
John Craven, vice-chancellor, said: "We are angry on behalf of our students who have been badly hit by this.”
Labour ministers ordered an inquiry after almost 150,000 students who had applications approved were left without funding at the start of the new academic term.
On average, institutions have paid £44,000 each in emergency funding to students left without money for rent, books and food.
Tens of thousands are still waiting for their first maintenance payments as the Student Loans Company (SLC) struggles to cope with record demand for funding.
Applications are believed to have been fuelled by the recession and a growth in the number of students starting university in 2009.
The BBC surveyed 58 universities and found 49 had been forced to make more hardship payments this term compared with the same period in 2008. Some 43 institutions attributed the rise to the loans crisis.
Portsmouth University has paid £80,000 to students waiting for loans and grants.
John Craven, vice-chancellor, said: "We are angry on behalf of our students who have been badly hit by this.”
Labour ministers ordered an inquiry after almost 150,000 students who had applications approved were left without funding at the start of the new academic term.
Quite how this incompetence will effect brown's chances of selling off the SLC remains to be seen.
The Student Loans Company processes payments for loans and grants. It is the first time grants have been handled by the SLC instead of local authorities.
Data published last week revealed 119,000 students who had their applications approved were still waiting for their first maintenance payments.
The National Union of Students has called for Ralph Seymour-Jackson, the company’s chief executive, to resign.
Sally Hunt, general secretary of the University and College Union, said: “It is totally unacceptable that so many students are still waiting to receive money, particularly first year students.
The Student Loans Company processes payments for loans and grants. It is the first time grants have been handled by the SLC instead of local authorities.
Data published last week revealed 119,000 students who had their applications approved were still waiting for their first maintenance payments.
The National Union of Students has called for Ralph Seymour-Jackson, the company’s chief executive, to resign.
Sally Hunt, general secretary of the University and College Union, said: “It is totally unacceptable that so many students are still waiting to receive money, particularly first year students.
Universities are providing help where they can and it is vital students seek financial help and guidance from their institution and students’ union, as we have real concerns about the loan sharks that are circling around some universities."
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: credit crunch, loans, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 2:44 PM 0 comments
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Monday, November 16, 2009
Store cards charge up to 31 per cent APR claims new research
UK shoppers are being warned against using expensive store cards as figures show worst offenders charge as much as 31 per cent APR, compared with 17 per cent on credit cards.
The research by consumer group Which? criticized both the “unnecessarily high” rates of interest and the easy access to store cards.
Its study suggested an indebted graduate was able to secure almost £3,000 of debt from half a dozen stores, despite earnings of less than £1,000 this year.
The research by consumer group Which? criticized both the “unnecessarily high” rates of interest and the easy access to store cards.
Its study suggested an indebted graduate was able to secure almost £3,000 of debt from half a dozen stores, despite earnings of less than £1,000 this year.
Store cards usually offer lower credit limits than traditional credit cards, but come with very high interest rates. And, unlike credit cards, which are given out by banks and their staff, they are handed out by retail staff in high street stores.
There are almost 15 million store cards in circulation, with around £3 billion worth of transactions made on them, according to the Finance and Leasing Association.
It called for tighter checks on customers, saying retailers should share relevant details and work more closely with credit-reference agencies to ensure they know their customer before they agree to lend to them.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: home loans, Loan calculator, loans, loans rates, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 2:40 PM 0 comments
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Friday, November 13, 2009
Buy to let home loans mortgage market shows signs of recovery
The buy to let home loans mortgage market grew for the first time in two years during the third quarter, new figures show.
A total of £2.1bn was advanced to investment landlords during the three months to the end of September, 10pc more than during the previous quarter, the Council of Mortgage Lenders said.
But despite the improvement, the figure was still the second lowest since records began in 2006 and well down on the peak of £12.4bn lent during the third quarter of 2007. There was also a 10pc increase in the number of buy-to-let mortgages advanced during the three months, at 23,700, up from 21,600 during the previous quarter.
A total of £2.1bn was advanced to investment landlords during the three months to the end of September, 10pc more than during the previous quarter, the Council of Mortgage Lenders said.
But despite the improvement, the figure was still the second lowest since records began in 2006 and well down on the peak of £12.4bn lent during the third quarter of 2007. There was also a 10pc increase in the number of buy-to-let mortgages advanced during the three months, at 23,700, up from 21,600 during the previous quarter.
A total of £1.19bn was advanced to landlords buying a property during the third quarter, with a further £840m lent to people remortgaging. The CML said remortgaging levels had been held back during the period by the fact that no mortgages were available to people borrowing more than 80pc of their property's value.
It said landlords with less than a 20pc equity stake in their property were being forced to stay on their lenders' revert rate when their existing deal came to an end, although it added that, with interest rates remaining low, this was relatively painless for them.
There was a slight increase in the number of buy to let properties that were repossessed by lenders during the third quarter, with this rising from 1,400 to 1,600, the equivalent of 0.14pc of all buy-to-let loans.
But there was a 32pc fall to 1,700 in the number of properties that had a receiver of rent appointed – an alternative to repossession that enables tenants to stay in their home.
The number of landlords who were in arrears also fell for the third quarter in a row, with 20,500 people in arrears of at least 1.5pc of their outstanding mortgage at the end of September, down from 22,900 three months earlier.
It said landlords with less than a 20pc equity stake in their property were being forced to stay on their lenders' revert rate when their existing deal came to an end, although it added that, with interest rates remaining low, this was relatively painless for them.
There was a slight increase in the number of buy to let properties that were repossessed by lenders during the third quarter, with this rising from 1,400 to 1,600, the equivalent of 0.14pc of all buy-to-let loans.
But there was a 32pc fall to 1,700 in the number of properties that had a receiver of rent appointed – an alternative to repossession that enables tenants to stay in their home.
The number of landlords who were in arrears also fell for the third quarter in a row, with 20,500 people in arrears of at least 1.5pc of their outstanding mortgage at the end of September, down from 22,900 three months earlier.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: credit crunch, home loans, Loan calculator, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 3:36 PM 0 comments
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Thursday, November 12, 2009
Fixed rate home loans- best choices
Now is the right time to take the plunge with a longer term fixed rate home loan.
To track or to fix, that is the question. Unfortunately it's a mortgage question without a clear cut answer. It's hardly surprising tracker mortgages are proving popular with borrowers right now when the rates on the most competitive deals do look very attractive indeed.
Take the Woolwich for example. Its 1 Year Step Lifetime Tracker deal currently offers an astonishingly low rate of 1.98% (Barclays bank base rate/BBBR + 1.48% for one year, then BBBR + 2.49% for the term) for borrowers with a 40% deposit or equity stake in their home.
Even though you're tied in with an early repayment charge (ERC) which extends way beyond the introductory period, (2% of the balance repaid until 31 January 2013) I can see why this deal might catch your eye.
But with trackers comes uncertainty. In the Woolwich's case, the deal is pegged to the Barclays bank base rate, but who can say how that rate might change in the future? And while I agree with Christina that interest rates will remain low in the short-term, will they stay that way until the end of the tie-in period in 2013? I'm not so sure.
Of course, there are plenty of other good tracker deals without extended ERCs. Northern Rock, for example, offers a tracker deal with a current rate of 2.59% (bank base rate + 2.09%) until 1 January 2012. But then again, if the base rate starts climbing fast before the introductory period is over, you could get stung, especially if you're budget is already pushed to the brink.
Unfortunately, while tracker mortgages have become much cheaper since the base rate has dropped to an all time low, fixed rate mortgages really aren't a million miles away from where they were prior to the financial crisis. According to lovemoney.com partner Moneyfacts, the average two year fixed rate mortgage is currently 5.06%, while average two year tracker rate is 3.76%.
The fact is, even if you meet the criteria for the most competitive one or two year fixed rate deals, you'll still find the rates easily exceed 3%. And the longer you want to fix, the higher the rates will be.
Lately, Northern Rock has stirred up competition in the fixed rate mortgage market with the recent launch of a new four and five year fixed rate deal. The four year deal offers borrowers a rate of 4.79%. The product fee is reasonable at £595 for purchases or £995 for remortgages, and the ERCs don't extend beyond the introductory period. But you'll need a deposit or equity stake of at least 30% to qualify.
To track or to fix, that is the question. Unfortunately it's a mortgage question without a clear cut answer. It's hardly surprising tracker mortgages are proving popular with borrowers right now when the rates on the most competitive deals do look very attractive indeed.
Take the Woolwich for example. Its 1 Year Step Lifetime Tracker deal currently offers an astonishingly low rate of 1.98% (Barclays bank base rate/BBBR + 1.48% for one year, then BBBR + 2.49% for the term) for borrowers with a 40% deposit or equity stake in their home.
Even though you're tied in with an early repayment charge (ERC) which extends way beyond the introductory period, (2% of the balance repaid until 31 January 2013) I can see why this deal might catch your eye.
But with trackers comes uncertainty. In the Woolwich's case, the deal is pegged to the Barclays bank base rate, but who can say how that rate might change in the future? And while I agree with Christina that interest rates will remain low in the short-term, will they stay that way until the end of the tie-in period in 2013? I'm not so sure.
Of course, there are plenty of other good tracker deals without extended ERCs. Northern Rock, for example, offers a tracker deal with a current rate of 2.59% (bank base rate + 2.09%) until 1 January 2012. But then again, if the base rate starts climbing fast before the introductory period is over, you could get stung, especially if you're budget is already pushed to the brink.
Unfortunately, while tracker mortgages have become much cheaper since the base rate has dropped to an all time low, fixed rate mortgages really aren't a million miles away from where they were prior to the financial crisis. According to lovemoney.com partner Moneyfacts, the average two year fixed rate mortgage is currently 5.06%, while average two year tracker rate is 3.76%.
The fact is, even if you meet the criteria for the most competitive one or two year fixed rate deals, you'll still find the rates easily exceed 3%. And the longer you want to fix, the higher the rates will be.
Lately, Northern Rock has stirred up competition in the fixed rate mortgage market with the recent launch of a new four and five year fixed rate deal. The four year deal offers borrowers a rate of 4.79%. The product fee is reasonable at £595 for purchases or £995 for remortgages, and the ERCs don't extend beyond the introductory period. But you'll need a deposit or equity stake of at least 30% to qualify.
For more on just how competitive Northern Rock's home loans current range is, why not check out this link?
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: home loans, loans rates, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 3:30 PM 0 comments
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Wednesday, November 11, 2009
Money worries affects work performance
Eight out of ten people admit they feel anxious about their finances, with many saying their worries affect their performance at work.
Around 5 per cent of people say they have taken time off work during the past 12 months because of their money worries, while seven out of 10 people admit they spend time thinking about their finances when they should be working.
More than a third of those questioned said their financial concerns prevented them from performing at their best, with 4 per cent saying they spend at least four hours a day worrying about money.
The most pressing concern for most people is paying their bills and repaying debt, although 35 per cent of those questioned said they were also worried about the economic recovery.
Just over half of people said they planned to try to save more, but 56 per cent admitted they did not set aside any time each month to manage their finances.
Around 5 per cent of people say they have taken time off work during the past 12 months because of their money worries, while seven out of 10 people admit they spend time thinking about their finances when they should be working.
More than a third of those questioned said their financial concerns prevented them from performing at their best, with 4 per cent saying they spend at least four hours a day worrying about money.
The most pressing concern for most people is paying their bills and repaying debt, although 35 per cent of those questioned said they were also worried about the economic recovery.
Just over half of people said they planned to try to save more, but 56 per cent admitted they did not set aside any time each month to manage their finances.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: credit crunch, home loans, recession, sub prime loans, uk recession
# posted by Dr Search- Principal Consultant at the Search Clinic @ 2:15 PM 0 comments
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Tuesday, November 10, 2009
Credit- how to make an application- without damaging your history
If you make an application for a loan or credit and are rejected, it can have a negative impact on your credit record. Here's a useful new way to avoid that fate:
If you've ever been turned down for a credit card or other financial product you've no doubt felt frustrated, confused or just plain annoyed - why on earth were you turned down?
Since the credit crunch lenders have become pickier about whom they will lend money too, applying increasingly stringent criteria. And as we all know, a good deal of their information is obtained from credit agencies - companies that hold details of our financial dealings.
Whenever we apply for a financial product, the lender involved carries out a credit search (which essentially gives them an idea of how likely they are to get their money back).
However, these searches leave so-called "hard footprints" on your credit record. When you come to apply for credit again, future lenders can see if you've been turned down in the past - and on the strength of this decide to offer you a more expensive deal than the one you've applied for, if indeed they make you an offer at all.
And too many failed applications in a short space of time can create a cluster of hard footprints which could scare future lenders off as you look desperate for credit. Yikes.
But that may be about to change. Barclaycard has launched an innovative "Credit Pre-application Check" which claims to tell us within one minute whether we would be accepted by the company for credit.
And the best bit is it won't leave a hard footprint on your credit record (instead it leaves only a "search footprint" that shows your information has been accessed). So you should be able to see how likely you are to be approved a Barclaycard credit card, whilst not affecting your ability to get credit in the future.
So what does the check entail? Well I took a look at the site and discovered that after entering your personal details you must then enter your employment status, pre-tax earnings, whether you're a Barclays' customer and how you intend to use the card (whether it's for a balance transfer, to make purchases or to earn rewards on purchases).
Enter the details, click "submit" and you should receive a result within seconds.
Depending on the type of card you're interested in, Barclaycard will tell you the percentage likelihood of you being accepted, should you choose to apply for it.
If you've ever been turned down for a credit card or other financial product you've no doubt felt frustrated, confused or just plain annoyed - why on earth were you turned down?
Since the credit crunch lenders have become pickier about whom they will lend money too, applying increasingly stringent criteria. And as we all know, a good deal of their information is obtained from credit agencies - companies that hold details of our financial dealings.
Whenever we apply for a financial product, the lender involved carries out a credit search (which essentially gives them an idea of how likely they are to get their money back).
However, these searches leave so-called "hard footprints" on your credit record. When you come to apply for credit again, future lenders can see if you've been turned down in the past - and on the strength of this decide to offer you a more expensive deal than the one you've applied for, if indeed they make you an offer at all.
And too many failed applications in a short space of time can create a cluster of hard footprints which could scare future lenders off as you look desperate for credit. Yikes.
But that may be about to change. Barclaycard has launched an innovative "Credit Pre-application Check" which claims to tell us within one minute whether we would be accepted by the company for credit.
And the best bit is it won't leave a hard footprint on your credit record (instead it leaves only a "search footprint" that shows your information has been accessed). So you should be able to see how likely you are to be approved a Barclaycard credit card, whilst not affecting your ability to get credit in the future.
So what does the check entail? Well I took a look at the site and discovered that after entering your personal details you must then enter your employment status, pre-tax earnings, whether you're a Barclays' customer and how you intend to use the card (whether it's for a balance transfer, to make purchases or to earn rewards on purchases).
Enter the details, click "submit" and you should receive a result within seconds.
Depending on the type of card you're interested in, Barclaycard will tell you the percentage likelihood of you being accepted, should you choose to apply for it.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: credit crunch, UK loans rates, uk recession
# posted by Dr Search- Principal Consultant at the Search Clinic @ 7:56 PM 0 comments
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Monday, November 09, 2009
Bad credit card loans will soar
Bad credit card debt loans may reach as much as 9% of all outstanding balances by the end of next year, an accountancy firm has said.
"Bad debts in the sector have reached historic highs," according to PricewaterhouseCoopers (PwC). The figure stands at about 6% now.
This comes despite a "cooling passion" for credit cards, with borrowing down 3% to £64bn in the past year. The number of credit cards in circulation has fallen by 8%, it said.
The past year has been a "tipping point" for the willingness of people to take on more unsecured debt, PwC said in the latest edition of its annual report "Precious Plastic".
Total consumer debt including mortgages stayed the same at just under £1.5 trillion.
Within that, unsecured lending via credit cards, bank loans and hire purchase agreements was largely unchanged at £230bn.
But the stock of debt outstanding just on credit cards fell.
PwC pointed out that this new declining trend reflected not only consumer choice, but the decision of card companies to restrict new lending to customers who are more creditworthy.
"The recent announcement by one major issuer that they would not generally seek to acquire new credit card customers without those same customers also holding a current account with them is in stark contrast to the time when credit card issuers accounted for one in every four pieces of junk mail that made it through our letterboxes," PwC said.
The accountancy firm forecast that as bad debts rose, the borrowing rates on cards would also go up, and monthly or annual fees would become a standard feature as lenders sought to increase their revenue.
"At the higher end of the market customers will pay for access to premium benefits and at the lower end more marginal customers will be expected to pay for even a standard credit card," the firm said.
PwC's report warned that while UK consumers were now borrowing less than before the financial crisis, debt levels in the UK remained high compared with the rest of Europe.
Each UK household has total average debt of about £60,000, made up of about £50,000 of secured debt and £10,000 of unsecured debt, PwC said.
"Bad debts in the sector have reached historic highs," according to PricewaterhouseCoopers (PwC). The figure stands at about 6% now.
This comes despite a "cooling passion" for credit cards, with borrowing down 3% to £64bn in the past year. The number of credit cards in circulation has fallen by 8%, it said.
The past year has been a "tipping point" for the willingness of people to take on more unsecured debt, PwC said in the latest edition of its annual report "Precious Plastic".
Total consumer debt including mortgages stayed the same at just under £1.5 trillion.
Within that, unsecured lending via credit cards, bank loans and hire purchase agreements was largely unchanged at £230bn.
But the stock of debt outstanding just on credit cards fell.
PwC pointed out that this new declining trend reflected not only consumer choice, but the decision of card companies to restrict new lending to customers who are more creditworthy.
"The recent announcement by one major issuer that they would not generally seek to acquire new credit card customers without those same customers also holding a current account with them is in stark contrast to the time when credit card issuers accounted for one in every four pieces of junk mail that made it through our letterboxes," PwC said.
The accountancy firm forecast that as bad debts rose, the borrowing rates on cards would also go up, and monthly or annual fees would become a standard feature as lenders sought to increase their revenue.
"At the higher end of the market customers will pay for access to premium benefits and at the lower end more marginal customers will be expected to pay for even a standard credit card," the firm said.
PwC's report warned that while UK consumers were now borrowing less than before the financial crisis, debt levels in the UK remained high compared with the rest of Europe.
Each UK household has total average debt of about £60,000, made up of about £50,000 of secured debt and £10,000 of unsecured debt, PwC said.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: credit crunch, home loans, loans, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 10:54 AM 0 comments
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Friday, November 06, 2009
Bank of England prints another £25 billion
The Bank of England's Monetary Policy Committee voted as expected to leave interest rates unchanged at 0.5%.
However Quantitative Easing was expanded by £25 billion to take the programme to £200 billion of money created to buy debt.
This was less than many expected and in the accompanying statement the Bank of England were slightly more upbeat on a pick up in economic activity and the market has taken the perception that we will now see at the very least a pause in the programme.
This changes the perception towards exit strategies and to a more hawkish tone…this has given sterling a boost even in the light of the decision to expand QE. The market is looking forward and the prospect of the next quarter showing the UK economy returning to growth and the halting of further QE.
The markets however remain very fickle and this sentiment could change very quickly.
Yesterday UK manufacturing rose 1.7% above expectations and Industrial Production climbed- again supportive of the sentiment that the worst is behind us.
Yesterday UK manufacturing rose 1.7% above expectations and Industrial Production climbed- again supportive of the sentiment that the worst is behind us.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Bank of England, interest rates, Quantitative Easing, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 12:41 PM 0 comments
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Thursday, November 05, 2009
Bank of England prints another £25bn in quantitative easing
The Bank of England’s monetary policy committee voted today to expand its vast programme to pump cash into the UK economy by £25bn, in a sign that it remains worried about the outlook in spite of incipient signs of recovery.
The move to increase “quantitative easing” – creating money in order to boost spending – from the existing £175bn used had been widely expected by economists after official figures suggested the UK remained mired in recession in the third quarter.
However, the addition of a further £25bn to the programme, which is likely to be used mostly to buy government debt, signals a slowing down in the pace of the Bank’s pace of monetary easing. In August the Bank had opted to expand the programme by £50bn, which has been used up over the last three months.
The additional £25bn in quantitative easing will take the total programme undertaken by the Bank to £200bn. The new money will be spent over the next three months.
The MPC said that the world economy had “shown signs of recovery” and that asset prices had risen internationally, “reflecting both the gradual improvement in the economic climate and accommodative monetary policies.”
In the UK, it said that although the third quarter had registered a continued contraction in the economy “a number of indicators of spending and confidence, however, suggest that a pickup in economic activity may soon be evident.”
The move to increase “quantitative easing” – creating money in order to boost spending – from the existing £175bn used had been widely expected by economists after official figures suggested the UK remained mired in recession in the third quarter.
However, the addition of a further £25bn to the programme, which is likely to be used mostly to buy government debt, signals a slowing down in the pace of the Bank’s pace of monetary easing. In August the Bank had opted to expand the programme by £50bn, which has been used up over the last three months.
The additional £25bn in quantitative easing will take the total programme undertaken by the Bank to £200bn. The new money will be spent over the next three months.
The MPC said that the world economy had “shown signs of recovery” and that asset prices had risen internationally, “reflecting both the gradual improvement in the economic climate and accommodative monetary policies.”
In the UK, it said that although the third quarter had registered a continued contraction in the economy “a number of indicators of spending and confidence, however, suggest that a pickup in economic activity may soon be evident.”
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Bank of England, credit crunch, loans, Quantitative Easing, UK loans rates, uk recession
# posted by Dr Search- Principal Consultant at the Search Clinic @ 1:04 PM 0 comments
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Wednesday, November 04, 2009
US loans interest rates left unchanged
The Federal Reserve Board has kept US interest rates on hold at between 0% and 0.25%, as had been widely expected.
Despite the US economy growing 3.5% in July to September - its first expansion since June 2008 - rates were left unchanged to further aid the recovery.
The Fed reiterated its view that rates would need to stay at the historic low for an "extended period".
While economic activity had "continued to pick up", it said high unemployment remained a concern.
The most recent official jobless rate totalled 9.8% in September, a 26-year high.
Analysts have also cautioned that the economic expansion between July and September was greatly helped by President Obama's $787bn (£480bn) stimulus package, with some fearing that growth will slow markedly when this impetus comes to an end.
One of the most successful parts of the stimulus spending was the $3bn "cash for clunkers" car scrappage scheme, which gave people who traded in old cars $3,500 towards the cost of a new vehicle.
This initiative operated in July and August, giving US car sales a major boost in both months. Car sales subsequently fell sharply in September after the scheme had concluded.
US interest rates were cut to the current level of between 0% and 0.25% in December last year, where they have remained ever since.
Despite the US economy growing 3.5% in July to September - its first expansion since June 2008 - rates were left unchanged to further aid the recovery.
The Fed reiterated its view that rates would need to stay at the historic low for an "extended period".
While economic activity had "continued to pick up", it said high unemployment remained a concern.
The most recent official jobless rate totalled 9.8% in September, a 26-year high.
Analysts have also cautioned that the economic expansion between July and September was greatly helped by President Obama's $787bn (£480bn) stimulus package, with some fearing that growth will slow markedly when this impetus comes to an end.
One of the most successful parts of the stimulus spending was the $3bn "cash for clunkers" car scrappage scheme, which gave people who traded in old cars $3,500 towards the cost of a new vehicle.
This initiative operated in July and August, giving US car sales a major boost in both months. Car sales subsequently fell sharply in September after the scheme had concluded.
US interest rates were cut to the current level of between 0% and 0.25% in December last year, where they have remained ever since.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: home loans, interest rates, loans, US loans rates, US mortgage rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 12:54 PM 0 comments
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Tuesday, November 03, 2009
10 warning signs of indebtedness
Do you have a debt problem- or do you think you’ve not got a debt problem - but then again, you may be in denial! Here's how to tell:
These days, most of us have some form of debt to deal with - whether it's a loan, a credit card, or an overdraft. But the big question is, at what point does that debt become a serious problem?
If you're just about managing financially, you might not think you have a debt problem.
But if your finances are a bit of a mess and if you, even occasionally, struggle to keep up with your debt payments, this could indicate that your debt is a bigger issue than you realise.
Facing up to these problems can be really hard. And it can seem far easier to simply ignore the problem, shove your bills in a cupboard somewhere, and hope it will all go away.
Unfortunately, it doesn't work like that, and the longer you ignore your debt problem, the worse it will get.
So here are the top 10 warning signs that your debts could be spiralling out of control.
1) You're only paying the minimum monthly repayment on your credit cards
Minimum monthly repayments are typically set at ridiculously low levels. This means that if you're only managing to pay this amount, it's going to take you a long time to pay off your credit card debt in full. Not only that, but you'll end up paying far more in interest before you clear your balance.
2) You don't know how much you owe and you don't want to find out
If you've lost track of how much you owe and have no idea how you ended up in debt, you're probably overspending. Losing track of what you're spending where is not a good idea, especially if you're spending large amounts. It indicates you've really got no control over your finances.
3) You're borrowing more to pay off your debts
Borrowing more and getting further into debt to meet your other debt payments is a dangerous path to follow - particularly if you're using payday loans, logbook loans or credit card cheques.
Equally, if you're taking money out on your credit card just to cover monthly payments on other debts, you could find yourself in serious trouble in the future. Find out more in Six dangerous ways to borrow.
4) You're spending more than you earn
If you have no idea what your budget is and you're spending more than you earn each month, or you're not sure whether your salary is covering your expenses, you could be in serious trouble.
5) You use your credit card to pay for everyday spending
If you regularly use your credit card to pay for necessities such as food or petrol and can't afford to clear the balance each month, your debts will continue to build up and put more strain on your finances.
6) You're regularly late paying bills
If you regularly fail to make your bill payments on time, your cheques bounce, or you overspend on your credit card or overdraft, you'll incur extra fees and charges from your bank. This will drive you further into debt and could also damage your credit rating.
7) You don't have any savings
If you're unable to put even a little money aside into a savings account each month because your debts are too high, that's not a good sign. Having said that, it is usually wise to pay off your debts before starting to save - so it's the right strategy, but don't be blase about it: it's a sign that you are struggling.
8) You find it hard to talk about your situation
If you find it difficult to be honest with your friends and family about your debt problems, or you're lying to them about your spending habits, you could be in denial about your debt.
9) You've been rejected for credit
This could be because you've already got too many credit cards - even if you no longer use them - or because you've missed payments in the past. All of this can damage your credit rating. Find out more in What REALLY damages your credit rating.
10) You're constantly worried about your finances
Recent research from talkaboutdebt.co.uk has revealed that 61% of people in serious debt aren't sleeping due to debt stress, and 29% have taken up to six months off work. If your money problems are affecting your working life, leisure time, and how you sleep, it's time to seek help.
Help yourself
If any of the situations outlined above apply to you, you're probably feeling concerned. Debt can have a serious impact on your life, but the important thing to remember is that you don't have to deal with it on your own.
Simply talking about your financial problems with your friends and family can feel like a huge weight has been lifted off your shoulders. What's more, it's a big step in helping you to face up to your debt problem.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, Loan calculator, loans, refinancing rates, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 12:21 PM 0 comments
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Monday, November 02, 2009
Will the Bank of England print more money?
A milestone week for the markets this week with lots of data to look out for both here and across the pond.
For sterling the main focus is undoubtedly centered upon the Bank of England meeting with the decision announced on Thursday at midday. The opinions on what will happen have been variant and this underlines the uncertainty surrounding the decision.
Loans Calculators is favouring another £25 billion expansion at the moment.
Other factors that will affect sterling are reports that Gordon Brown is set to announce new “fiscal stimulus” in the autumn pre-budget statement and the restructuring of the UK banking sector. These two facets are likely to lead to change and uncertainty which is never good for the currency.
Some positive signs over the weekend that the Global economy is slowly on the mend, well at least in Asia. China’s October PMI rose to 55.2 from 54.3 in September and there was news the country had created 7.57 new jobs in the first 8 months of the year.
Some positive signs over the weekend that the Global economy is slowly on the mend, well at least in Asia. China’s October PMI rose to 55.2 from 54.3 in September and there was news the country had created 7.57 new jobs in the first 8 months of the year.
Meanwhile Australia has upgraded it’s economic outlook and Australian house prices rose 4.2% in the third quarter- this could seal a 50 basis point rate rise this week from the RBA.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Bank of England, Quantitative Easing
# posted by Dr Search- Principal Consultant at the Search Clinic @ 12:48 PM 0 comments
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Friday, October 30, 2009
Lender to repay 46,000 borrowers
The GMAC-RFC mortgage lender has been fined £2.8m by the Financial Services Authority (FSA) for mistreating customers who fell into arrears. It has also been told to repay £7.7m, plus interest, to 46,000 of its borrowers.
The FSA said the company levied unfair charges on borrowers who fell behind with their repayments and was too eager to repossess them.
GMAC-RFC apologised and admitted some its charges had been excessive.
"In hindsight, we fully accept that for certain fees our estimates of the costs were not proportionate to the additional administration actually required," said a spokesman for the lender. "We will be writing to customers who incurred these specific charges when in arrears and will re-credit the charges plus interest," he added.
After setting up as a mortgage business in the UK in 1998, GMAC-RFC grew rapidly to become one of the UK's largest mortgage lenders, but it stopped making new loans last year.
The FSA's investigation of the company's lending practices between October 2004 and October 2008 found that:
• charges for dealing with people in arrears were "excessive and unfair"
• repossession proceedings were started before all other alternatives had been considered
• GMAC staff were not properly trained in dealing with arrears cases and repossessions.
Another three lenders are being investigated by the FSA over similar failings.
The consumers association Which? demanded they be identified.
"Instead of treating its customers in arrears fairly, GMAC decided to pile on the misery by squeezing more money out of them and, in some cases, taking their homes," said Which? personal finance campaigner, Dominic Lindley.
"This raises serious questions about the amount of time the enforcement process has taken, given that the FSA has known about these problems since mid 2008."
The fine is the largest yet to be levied by the FSA on a mortgage lender and the regulator warned that more may be in the pipeline.
"Mortgage lenders and third party administrators should read this final notice and the mortgage market review and take action in the interests of their customers," said Margaret Cole, director of enforcement and financial crime for the FSA.
In August the regulator was accused by MPs on the Treasury select committee of being "too leisurely" in enforcing the rules over how lenders should treat their borrowers.
The MPs said that the practice of loading extra fees on those in arrears was "intolerable" and said the FSA should stop lenders using repossession as a first, rather than last, resort.
Separately, the FSA revealed that financial services firms had received 1,510,000 complaints from the public between January and the end of June 2009, a 2% increase from the previous six months.
More complaints about the mis-selling of payment protection insurance drove up complaints about general insurance and "pure protection" policies by 19% to 334,443.
There were 208,000 complaints about misleading advice - a 19% increase.
But the proportion of complaints upheld by the firms dropped from 40 % to 38%, mainly due to more complaints being rejected by banks.
The FSA said the company levied unfair charges on borrowers who fell behind with their repayments and was too eager to repossess them.
GMAC-RFC apologised and admitted some its charges had been excessive.
"In hindsight, we fully accept that for certain fees our estimates of the costs were not proportionate to the additional administration actually required," said a spokesman for the lender. "We will be writing to customers who incurred these specific charges when in arrears and will re-credit the charges plus interest," he added.
After setting up as a mortgage business in the UK in 1998, GMAC-RFC grew rapidly to become one of the UK's largest mortgage lenders, but it stopped making new loans last year.
The FSA's investigation of the company's lending practices between October 2004 and October 2008 found that:
• charges for dealing with people in arrears were "excessive and unfair"
• repossession proceedings were started before all other alternatives had been considered
• GMAC staff were not properly trained in dealing with arrears cases and repossessions.
Another three lenders are being investigated by the FSA over similar failings.
The consumers association Which? demanded they be identified.
"Instead of treating its customers in arrears fairly, GMAC decided to pile on the misery by squeezing more money out of them and, in some cases, taking their homes," said Which? personal finance campaigner, Dominic Lindley.
"This raises serious questions about the amount of time the enforcement process has taken, given that the FSA has known about these problems since mid 2008."
The fine is the largest yet to be levied by the FSA on a mortgage lender and the regulator warned that more may be in the pipeline.
"Mortgage lenders and third party administrators should read this final notice and the mortgage market review and take action in the interests of their customers," said Margaret Cole, director of enforcement and financial crime for the FSA.
In August the regulator was accused by MPs on the Treasury select committee of being "too leisurely" in enforcing the rules over how lenders should treat their borrowers.
The MPs said that the practice of loading extra fees on those in arrears was "intolerable" and said the FSA should stop lenders using repossession as a first, rather than last, resort.
Separately, the FSA revealed that financial services firms had received 1,510,000 complaints from the public between January and the end of June 2009, a 2% increase from the previous six months.
More complaints about the mis-selling of payment protection insurance drove up complaints about general insurance and "pure protection" policies by 19% to 334,443.
There were 208,000 complaints about misleading advice - a 19% increase.
But the proportion of complaints upheld by the firms dropped from 40 % to 38%, mainly due to more complaints being rejected by banks.
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Labels: credit crunch, home loans, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 11:23 AM 0 comments
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Thursday, October 29, 2009
UK house prices rise for fifth month in a row
House prices in England and Wales rose by 0.9pc in September, according to figures released by the UK Land Registry.
The data from the Land Registry's House Price Index shows an annual drop of 5.6pc, taking the average house price in England and Wales to £158,377. But this is the fifth month in a row that the annual rate of decline has eased.
All regions experienced a decrease in their average property values over the last 12 months. The region with the most significant annual price fall was the North East with a movement of -8.2pc.
The most up-to-date figures available show that during July 2009 the number of completed house sales in England and Wales rose by 9pc to 57,579, up from 52,628 in July 2008. Monthly sales in England and Wales have risen steadily each month since January 2009 when they stood at 26,662.
London experienced the greatest monthly price rise, rising 1.3pc, with the average property price in the capital now £314,954.
London and the South East are the two regions most responsible for the positive growth experienced by England and Wales as a whole. Wales was the region with the most significant monthly price fall with a movement of minus 2.6 pc.
The number of sales averaged 48,109 per month from April 2009 to July 2009. In the same time period the year before, transaction volumes averaged 59,677 per month.
The data from the Land Registry's House Price Index shows an annual drop of 5.6pc, taking the average house price in England and Wales to £158,377. But this is the fifth month in a row that the annual rate of decline has eased.
All regions experienced a decrease in their average property values over the last 12 months. The region with the most significant annual price fall was the North East with a movement of -8.2pc.
The most up-to-date figures available show that during July 2009 the number of completed house sales in England and Wales rose by 9pc to 57,579, up from 52,628 in July 2008. Monthly sales in England and Wales have risen steadily each month since January 2009 when they stood at 26,662.
London experienced the greatest monthly price rise, rising 1.3pc, with the average property price in the capital now £314,954.
London and the South East are the two regions most responsible for the positive growth experienced by England and Wales as a whole. Wales was the region with the most significant monthly price fall with a movement of minus 2.6 pc.
The number of sales averaged 48,109 per month from April 2009 to July 2009. In the same time period the year before, transaction volumes averaged 59,677 per month.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: home loans, UK loans rates, uk recession
# posted by Dr Search- Principal Consultant at the Search Clinic @ 11:16 AM 0 comments
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Wednesday, October 28, 2009
Credit cards- the UK system discourages shopping around
Consumers shopping around for the best loan rates could be penalised if their credit rating reflects multiple applications, MPs have been told.
As part of their investigation into the issue the Treasury Select Committee was told that people who made several attempts to get a deal for a loan or credit card could hurt their credit score.
Banks and building societies are increasingly using so-called risk-based pricing, whereby rates are tailored to an individual borrower's circumstances.
But this means the consumer will find out what the price is only after a credit check has been completed. Each search could be logged on a person's credit file, potentially giving other lenders the impression they have applied for many products and been rejected.
Representatives from the industry said the record of multiple loan applications – rather than just successful deals – enabled firms to flag up issues such as high indebtedness or fraud.
But Martin Lewis, of MoneySavingExpert.com, told the panel that some consumers were forced into making several applications after finding they were not eligible for lenders' advertised rates.
He submitted case studies to the committee which included a consumer who said they had applied for a loan at a rate of 9pc but were actually offered one for 30pc. This, he argued, contributed to customers declining to take up one loan and applying for others, but by doing so he said their credit rating might be affected.
"The system is designed to stop shopping around at the detriment of consumer choice," he said.
The committee heard from industry members that legislation requires lenders to advertise an APR rate that 66pc of those taking up the deal will be able to receive.
The remaining customers – a third of those taking up the loan – were potentially paying a higher rate.
Not all lenders use the sorts of checks that would show up on a credit report. Nationwide for example has a policy of using only the softer touch surveys, while Barclaycard enables people to find out if they would qualify for one of its cards without having to make a full application.
As part of their investigation into the issue the Treasury Select Committee was told that people who made several attempts to get a deal for a loan or credit card could hurt their credit score.
Banks and building societies are increasingly using so-called risk-based pricing, whereby rates are tailored to an individual borrower's circumstances.
But this means the consumer will find out what the price is only after a credit check has been completed. Each search could be logged on a person's credit file, potentially giving other lenders the impression they have applied for many products and been rejected.
Representatives from the industry said the record of multiple loan applications – rather than just successful deals – enabled firms to flag up issues such as high indebtedness or fraud.
But Martin Lewis, of MoneySavingExpert.com, told the panel that some consumers were forced into making several applications after finding they were not eligible for lenders' advertised rates.
He submitted case studies to the committee which included a consumer who said they had applied for a loan at a rate of 9pc but were actually offered one for 30pc. This, he argued, contributed to customers declining to take up one loan and applying for others, but by doing so he said their credit rating might be affected.
"The system is designed to stop shopping around at the detriment of consumer choice," he said.
The committee heard from industry members that legislation requires lenders to advertise an APR rate that 66pc of those taking up the deal will be able to receive.
The remaining customers – a third of those taking up the loan – were potentially paying a higher rate.
Not all lenders use the sorts of checks that would show up on a credit report. Nationwide for example has a policy of using only the softer touch surveys, while Barclaycard enables people to find out if they would qualify for one of its cards without having to make a full application.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: credit crunch, loans, loans rates, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 11:08 AM 0 comments
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Tuesday, October 27, 2009
Northern Rock home loans are best buy after rate cuts
Nationalised bank Northern Rock has cut its home loans rates for the third time in as many weeks, pushing it to the top of the best buy tables.
The group is reducing the interest charged on 14 of its mortgages by up to 0.64 of a percentage point, leaving it with three market-leading deals.
It now has the top two-year fixed-rate mortgage on offer with a rate of 3.65pc for people with a 30pc deposit who pay a £595 fee, as well as a best buy two-year tracker of 2.69pc with the same terms.
The group is also offering a rate of 4.99pc on its five-year fixed rate mortgage, equalling the current market leading rate offered by Newcastle Building Society.
The Newcastle deal is available to borrowers with a deposit of only 25pc, while Northern Rock demands 30pc, but it has a lower arrangement fee at £595, compared with Newcastle's £994.
Northern Rock also today launched eight new mortgages for people borrowing up to 80pc of their home's value.
The taxpayers-owned group has to operate its mortgage range within the constraints of its self-imposed competitive framework, under which it is limited to writing 2.5pc of new mortgage lending.
But unlike the savings market, where it is not allowed to offer best buy rates according to the Moneyfacts charts, there is no similar constraint on its mortgage deals. It pledged earlier this year to advance up to £4bn through mortgage lending during 2009 and up to £10 billion in 2010.
The latest round of rate cuts by Northern Rock is a further sign that competition is returning to the mortgage market. Abbey, part of Spanish banking giant Santander, has reduced rates on a number of its fixed rate and tracker deals by up to 0.3 of a percentage point.
A flurry of major lenders, including Nationwide, Barclays-owned Woolwich, and Cheltenham & Gloucester, which is part of Lloyds Banking Group, have all cut their rates at least once this month.
The group is reducing the interest charged on 14 of its mortgages by up to 0.64 of a percentage point, leaving it with three market-leading deals.
It now has the top two-year fixed-rate mortgage on offer with a rate of 3.65pc for people with a 30pc deposit who pay a £595 fee, as well as a best buy two-year tracker of 2.69pc with the same terms.
The group is also offering a rate of 4.99pc on its five-year fixed rate mortgage, equalling the current market leading rate offered by Newcastle Building Society.
The Newcastle deal is available to borrowers with a deposit of only 25pc, while Northern Rock demands 30pc, but it has a lower arrangement fee at £595, compared with Newcastle's £994.
Northern Rock also today launched eight new mortgages for people borrowing up to 80pc of their home's value.
The taxpayers-owned group has to operate its mortgage range within the constraints of its self-imposed competitive framework, under which it is limited to writing 2.5pc of new mortgage lending.
But unlike the savings market, where it is not allowed to offer best buy rates according to the Moneyfacts charts, there is no similar constraint on its mortgage deals. It pledged earlier this year to advance up to £4bn through mortgage lending during 2009 and up to £10 billion in 2010.
The latest round of rate cuts by Northern Rock is a further sign that competition is returning to the mortgage market. Abbey, part of Spanish banking giant Santander, has reduced rates on a number of its fixed rate and tracker deals by up to 0.3 of a percentage point.
A flurry of major lenders, including Nationwide, Barclays-owned Woolwich, and Cheltenham & Gloucester, which is part of Lloyds Banking Group, have all cut their rates at least once this month.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: home loans, UK loans rates, uk recession
# posted by Dr Search- Principal Consultant at the Search Clinic @ 11:04 AM 0 comments
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Monday, October 26, 2009
London shares lose gains as lenders suffer
London equities failed to hold gains on Monday, as financial stocks around the world fell after reports the US authorities prepared to unveil plans that would make it easier for the government to seize control of failing financial institutions.
The news hit sentiment toward the sector, and sent shares in the UK nationalised banks to the bottom of the FTSE 100.
Overall, London’s benchmark index fell 48 points to 5,194.25, a loss of 0.9 per cent. Lloyds Banking Group was its biggest single casualty, down 6.3 per cent to 90.2p. Royal Bank of scotland fell 5.1 per cent to 44.7p.
Shares have lost some direction over recent weeks as investors have started to worry that the gains seen since the first part of the year have got ahead of the economic recovery.
The news hit sentiment toward the sector, and sent shares in the UK nationalised banks to the bottom of the FTSE 100.
Overall, London’s benchmark index fell 48 points to 5,194.25, a loss of 0.9 per cent. Lloyds Banking Group was its biggest single casualty, down 6.3 per cent to 90.2p. Royal Bank of scotland fell 5.1 per cent to 44.7p.
Shares have lost some direction over recent weeks as investors have started to worry that the gains seen since the first part of the year have got ahead of the economic recovery.
Bid activity on the continent helped Cable & Wireless move to the top of the leaderboard.
Cable and Wireless was 3.3 per cent higher at 145.7p, the best single performer on the FTSE 100.
British Airways was lower on news that European regulators were considering forcing the sale of take-off and landing slots should its transatlantic tie-up with American Airlines and Spain’s Iberia go ahead. Shares in BA lost 2.4 per cent to 204.8p.
Shares in McBride topped the FTSE 250 after the maker of own-label branded goods for supermarkets said it had performed ahead of expectations in the first half. The stock rose 10.9 per cent to 221.2p..
As confidence in the prospect for a swift and sustained global economic rebound faltered, mining stocks lost intraday gains. Among them, Kazakhmys was 2.3 per cent weaker at £12.65.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Loan calculator, loans, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 7:31 PM 0 comments
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Friday, October 23, 2009
Home loans owners pay 70 per cent more for mortgage payment protection insurance
Home loans owners are paying more than 70 per cent more to insure their mortgage payments against losing their job compared with a year ago.
Rising unemployment means companies offering mortgage payment protection insurance have increased their prices sharply during the recession to account for a greater number of claims.
It means the average monthly premium for those looking to buy a new policy has jumped from £12 to almost £22 in just over a year, or an annual increase of £120.
It comes after the City regulator the Financial Services Authority announced that providers have agreed to pay back £60 million to existing MPPI holders who have suffered any increases in premiums since the beginning of the year.
It said 2.1 million customers have the polices, of which half have seen price rises since the beginning of the year.
Rising unemployment has made MPPI policies attractive to home owners who are concerned about losing their jobs and being unable to pay their mortgage.
Unemployment continues to rise amid the longest recession since 1930s. It jumped to 2.47 million, up 88,000 from the three months to May 2009 and up 677,000 from a year earlier.
Economists said unemployment will surpass the three million mark, matching the job crises seen in the 1980s and 1990s recessions.
Rising unemployment means companies offering mortgage payment protection insurance have increased their prices sharply during the recession to account for a greater number of claims.
It means the average monthly premium for those looking to buy a new policy has jumped from £12 to almost £22 in just over a year, or an annual increase of £120.
It comes after the City regulator the Financial Services Authority announced that providers have agreed to pay back £60 million to existing MPPI holders who have suffered any increases in premiums since the beginning of the year.
It said 2.1 million customers have the polices, of which half have seen price rises since the beginning of the year.
Rising unemployment has made MPPI policies attractive to home owners who are concerned about losing their jobs and being unable to pay their mortgage.
Unemployment continues to rise amid the longest recession since 1930s. It jumped to 2.47 million, up 88,000 from the three months to May 2009 and up 677,000 from a year earlier.
Economists said unemployment will surpass the three million mark, matching the job crises seen in the 1980s and 1990s recessions.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: home loans, Loan calculator, mortgage calculator, unemployment
# posted by Dr Search- Principal Consultant at the Search Clinic @ 7:21 PM 0 comments
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Thursday, October 22, 2009
Bank loans customers face authorised overdraft rate of 365pc
Halifax and Bank of Scotland customers who use an agreed overdraft are to be charged an interest rate of the equivalent to 365 per cent.
The change means customers with arranged overdrafts of up to £2,500 will be charged at £1 a day and those with arranged overdrafts of more than £2,500 will be hit with a fee of £2 a day.
Customers are being notified of the changes which come into effect on December 6.
Dominic Lindley, Which? personal finance campaigner, said: “This is bad news for any Halifax and Bank of Scotland customers who regularly use their overdraft as it’s effectively a big hike in charges. If you’re overdrawn by £100, a £1 a day charge is equivalent to 365 per cent.
“Anyone who’s unhappy with the new charging structure should vote with their feet by shopping around and switching to a current account that best suits their needs.”
Halifax pointed out that the new charging structure doesn’t have credit or debit interest just a daily fee.
A spokesman for Halifax said: “The vast majority of our customers don’t use their overdraft facility in an average month and those that do only go overdrawn for a few days usually at the end of the month.
“For customers who use their overdraft on a more regular basis we have specifically asked these customers to contact us so we can review their banking needs and ensure they are in the best account for their individual circumstances."
The change means customers with arranged overdrafts of up to £2,500 will be charged at £1 a day and those with arranged overdrafts of more than £2,500 will be hit with a fee of £2 a day.
Customers are being notified of the changes which come into effect on December 6.
Dominic Lindley, Which? personal finance campaigner, said: “This is bad news for any Halifax and Bank of Scotland customers who regularly use their overdraft as it’s effectively a big hike in charges. If you’re overdrawn by £100, a £1 a day charge is equivalent to 365 per cent.
“Anyone who’s unhappy with the new charging structure should vote with their feet by shopping around and switching to a current account that best suits their needs.”
Halifax pointed out that the new charging structure doesn’t have credit or debit interest just a daily fee.
A spokesman for Halifax said: “The vast majority of our customers don’t use their overdraft facility in an average month and those that do only go overdrawn for a few days usually at the end of the month.
“For customers who use their overdraft on a more regular basis we have specifically asked these customers to contact us so we can review their banking needs and ensure they are in the best account for their individual circumstances."
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: home loans, loans, loans rates, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 7:15 PM 0 comments
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Wednesday, October 21, 2009
Spooked investors short US rally
Spooked traders unraveled a stock market rally late on Wednesday as worries mounted about banks and a jump in the price of oil.
The Dow Jones industrial average ended down 92 points after having risen 78 points earlier in the day to a new high for the year.
The Dow Jones industrial average fell 92.12, or 0.9 per cent, to 9,949.36.
The market reacted well initially to news of record profits for banking giant Wells Fargo and positive earnings for Morgan Stanley after three consecutive quarterly losses, offset by news of a worse-than-expected loss of $1.56 billion for aerospace giant Boeing.
The main indexes were positive for much of the day, but Jon Ogg at 24/7 Wall Street said a downgrade of Wells Fargo from banking analyst Dick Bove appeared to prompt the late reversal in the market.
Britain’s top share index closed 0.3 per cent higher, was also lifted by the forecast-beating results from Morgan Stanley.
The FTSE 100 closed 14.45 points firmer at 5,257.85, after falling as low as 5,174.48 earlier in the day.
The Dow Jones industrial average ended down 92 points after having risen 78 points earlier in the day to a new high for the year.
The Dow Jones industrial average fell 92.12, or 0.9 per cent, to 9,949.36.
The market reacted well initially to news of record profits for banking giant Wells Fargo and positive earnings for Morgan Stanley after three consecutive quarterly losses, offset by news of a worse-than-expected loss of $1.56 billion for aerospace giant Boeing.
The main indexes were positive for much of the day, but Jon Ogg at 24/7 Wall Street said a downgrade of Wells Fargo from banking analyst Dick Bove appeared to prompt the late reversal in the market.
Britain’s top share index closed 0.3 per cent higher, was also lifted by the forecast-beating results from Morgan Stanley.
The FTSE 100 closed 14.45 points firmer at 5,257.85, after falling as low as 5,174.48 earlier in the day.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: home loans, Loan calculator, Oil, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 7:07 PM 0 comments
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Tuesday, October 20, 2009
New house slump hits markets
Worse than expected economic data offset strong results from corporate bellwether's including Caterpillar, the world's largest maker of heavy construction and mining equipment, to send the New York stockmarket tumbling.
The Dow Jones industrial average was down 74.89 points at 10,017.3 points at 2.15pm.
The drop came after new housing start figures for September fell below economists' expectations.
The figures, from the US Commerce Department, revealed the number of privately owned new homes on which construction has started is still 28.2 per cent below last year's rate of 822,000.
A separate study, from the Labor Department, showed producer prices dropped an unexpected 0.6 per cent in September. Analysts had forecast that prices would remain unchanged after rising 1.7 per cent in August.
The data overshadowed a series of strong corporate results.
Caterpillar saw profit in its third quarter fall 53 per cent but raised its full-year earnings outlook for 2009 and said it expects higher demand next year as the global economy improves.
Jim Owens, chief executive of Caterpillar, said: "We are seeing encouraging signs that indicate a recovery may be underway."
Pfizer, the drugs giant, also helped to lift investor sentiment, unveiling third quarter figures which topped Wall Street estimates.
The group, fresh from completing its $67 billion purchase of Wyeth last week, reported a 26 per cent rise in third quarter net earnings to $2.88 billion, or 43 cents a share, up from $2.28 billion, or 34 cents a share, a year earlier.
Coca-Cola, however, reported lower-than-expected quarterly revenue, hurt by declines across all its businesses, and said a weak economy would keep consumers under pressure next year, sending shares down 2.4 per cent.
In London, the FTSE 100 closed down 38.14 points at 5,243.40, having hit a fresh high for the year at 5,298.54 earlier in the session.
The biggest faller was Autonomy, the technology company, which dropped 138p or 8.65 per cent to £14.57 after its third quarter update missed expectations.
Barclays was another big loser, shedding 18.30p or 4.79 per cent to 363.75p after Qatari Holding, the sovereign wealth fund, said it was partially exiting its investment in the bank.
The Dow Jones industrial average was down 74.89 points at 10,017.3 points at 2.15pm.
The drop came after new housing start figures for September fell below economists' expectations.
The figures, from the US Commerce Department, revealed the number of privately owned new homes on which construction has started is still 28.2 per cent below last year's rate of 822,000.
A separate study, from the Labor Department, showed producer prices dropped an unexpected 0.6 per cent in September. Analysts had forecast that prices would remain unchanged after rising 1.7 per cent in August.
The data overshadowed a series of strong corporate results.
Caterpillar saw profit in its third quarter fall 53 per cent but raised its full-year earnings outlook for 2009 and said it expects higher demand next year as the global economy improves.
Jim Owens, chief executive of Caterpillar, said: "We are seeing encouraging signs that indicate a recovery may be underway."
Pfizer, the drugs giant, also helped to lift investor sentiment, unveiling third quarter figures which topped Wall Street estimates.
The group, fresh from completing its $67 billion purchase of Wyeth last week, reported a 26 per cent rise in third quarter net earnings to $2.88 billion, or 43 cents a share, up from $2.28 billion, or 34 cents a share, a year earlier.
Coca-Cola, however, reported lower-than-expected quarterly revenue, hurt by declines across all its businesses, and said a weak economy would keep consumers under pressure next year, sending shares down 2.4 per cent.
In London, the FTSE 100 closed down 38.14 points at 5,243.40, having hit a fresh high for the year at 5,298.54 earlier in the session.
The biggest faller was Autonomy, the technology company, which dropped 138p or 8.65 per cent to £14.57 after its third quarter update missed expectations.
Barclays was another big loser, shedding 18.30p or 4.79 per cent to 363.75p after Qatari Holding, the sovereign wealth fund, said it was partially exiting its investment in the bank.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, home loans, inflation, new home sales
# posted by Dr Search- Principal Consultant at the Search Clinic @ 7:03 PM 0 comments
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Monday, October 19, 2009
Home loans face tighter application red tape
Borrowers face a mortgage affordability test from lenders under new plans by the Financial Services Authority (FSA) to step up the regulation of home loans.
Self-certification mortgages will be banned under the proposals with lenders required to verify borrowers' incomes.
FSA chief executive Hector Sants said that some people who were able to get home loans in the boom would no longer be able to under the proposed rules.
The industry will have until 30 January 2010 to comment on the plans.
The FSA, in its mortgage market review, has outlined a series of proposals for increasing regulation in the mortgage market.
All borrowers will have to show they have sufficient spare income to finance the repayment of their new home loans.
However, the FSA drew back from any ban on 100% mortgages, or any limit on loan-to-value levels. There was also no ban on loans over a certain multiple of borrowers' incomes.
However, it did not rule out such caps in the future, if the initial proposals failed to have a "sufficient effect".
"In the past, the prevailing regulatory philosophy was definitely based on the notion that banks would behave properly and not put themselves at risk and not put consumers at risk," he said.
"I think we just have to recognise that both firms and indeed consumers just don't always make the best decisions. They don't always act in their their best interest or indeed in the best collective interest of society. So we need a new approach to regulation."
Self-certification mortgages will be banned under the proposals with lenders required to verify borrowers' incomes.
FSA chief executive Hector Sants said that some people who were able to get home loans in the boom would no longer be able to under the proposed rules.
The industry will have until 30 January 2010 to comment on the plans.
The FSA, in its mortgage market review, has outlined a series of proposals for increasing regulation in the mortgage market.
All borrowers will have to show they have sufficient spare income to finance the repayment of their new home loans.
However, the FSA drew back from any ban on 100% mortgages, or any limit on loan-to-value levels. There was also no ban on loans over a certain multiple of borrowers' incomes.
However, it did not rule out such caps in the future, if the initial proposals failed to have a "sufficient effect".
"In the past, the prevailing regulatory philosophy was definitely based on the notion that banks would behave properly and not put themselves at risk and not put consumers at risk," he said.
"I think we just have to recognise that both firms and indeed consumers just don't always make the best decisions. They don't always act in their their best interest or indeed in the best collective interest of society. So we need a new approach to regulation."
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, home loans, mortgage calculator
# posted by Dr Search- Principal Consultant at the Search Clinic @ 6:34 PM 0 comments
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Saturday, October 17, 2009
UK house prices to fall 10pc in 2010
House prices in Britain will fall 10 per cent next year, reversing their recovery of recent months.
Rising unemployment and a failure of mortgage lenders to offer cheap home loans will mean property will stay unaffordable for too many consumers, forcing prices down in a "second wave of house price falls".
Capital Economics is predicting that house prices will fall by 10 per cent next year and 5 per cent the following year, taking the average price from £163,500 – on the Halifax house price index – to below £139,000 by the end of 2011.
The prediction implies that house prices will, having recovered in recent months, fall to below their trough back in April, when they hit a low of £154,500.
Capital Economics, which has a history of being bearish on house prices, admits it is being pessimistic, but warns that there was a downside to a rapid recovery in the economy. "While we may be underestimating the potential for an economic recovery, stronger growth would be accompanied by higher interest rates. That would only add to the pressure for lower house prices," it said.
Its pessimistic outlook on house prices follows two weeks after the ratings agency Fitch predicted house prices had a further 17 per cent to fall. Fitch argued that prices, despite their fall from the peak of the summer of 2007 when they hit £199,000, were still too expensive, when compared with the average earnings of British workers.
The severe shortage of houses on the market – as cautious owners hold back from selling at depressed prices – has caused a strong recovery in recent months.
In some areas such as Oxfordshire and London estate agents have even reported a return of gazumping, the practice of home buyers outbidding each other, even when the offer price has been accepted.
Capital Economics said this recovery was unsustainable, with the likelihood of severe job cuts in the public sector looming. Most economists, even the most optimistic, believe that unemployment is likely to climb from 2.47 million to close to 3 million next year, forcing many people to sell their houses.
Rising unemployment and a failure of mortgage lenders to offer cheap home loans will mean property will stay unaffordable for too many consumers, forcing prices down in a "second wave of house price falls".
Capital Economics is predicting that house prices will fall by 10 per cent next year and 5 per cent the following year, taking the average price from £163,500 – on the Halifax house price index – to below £139,000 by the end of 2011.
The prediction implies that house prices will, having recovered in recent months, fall to below their trough back in April, when they hit a low of £154,500.
Capital Economics, which has a history of being bearish on house prices, admits it is being pessimistic, but warns that there was a downside to a rapid recovery in the economy. "While we may be underestimating the potential for an economic recovery, stronger growth would be accompanied by higher interest rates. That would only add to the pressure for lower house prices," it said.
Its pessimistic outlook on house prices follows two weeks after the ratings agency Fitch predicted house prices had a further 17 per cent to fall. Fitch argued that prices, despite their fall from the peak of the summer of 2007 when they hit £199,000, were still too expensive, when compared with the average earnings of British workers.
The severe shortage of houses on the market – as cautious owners hold back from selling at depressed prices – has caused a strong recovery in recent months.
In some areas such as Oxfordshire and London estate agents have even reported a return of gazumping, the practice of home buyers outbidding each other, even when the offer price has been accepted.
Capital Economics said this recovery was unsustainable, with the likelihood of severe job cuts in the public sector looming. Most economists, even the most optimistic, believe that unemployment is likely to climb from 2.47 million to close to 3 million next year, forcing many people to sell their houses.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: credit crunch, home loans, refinancing rates, UK loans rates, uk recession
# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:26 AM 0 comments
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Thursday, October 15, 2009
Buying a London home needs £93,000 wage
First time buyers in London must earn £93,000 a year to afford an average home in the city, a report has claimed.
The research by the National Housing Federation, which represents 1,200 housing associations, puts the average house price in London at £362,000.
A single buyer would require the near-six-figure income to get a 90% home loan at 3.5 times their salary.
The average wage in London is £26,000, while overcrowding rates are 2.5 times the national rate, the report said.
The Housing Federation's Belinda Porich said: "Even by London standards, these are astronomical prices and many people - especially young, first time buyers - can only dream of owning a home.
The report claims 353,000 families are currently on social housing waiting lists, while more families became homeless last year than new homes were built.
Nearly 7% of houses in London are overcrowded, the authors added.
The research by the National Housing Federation, which represents 1,200 housing associations, puts the average house price in London at £362,000.
A single buyer would require the near-six-figure income to get a 90% home loan at 3.5 times their salary.
The average wage in London is £26,000, while overcrowding rates are 2.5 times the national rate, the report said.
The Housing Federation's Belinda Porich said: "Even by London standards, these are astronomical prices and many people - especially young, first time buyers - can only dream of owning a home.
The report claims 353,000 families are currently on social housing waiting lists, while more families became homeless last year than new homes were built.
Nearly 7% of houses in London are overcrowded, the authors added.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: home loans, inflation, interest rates, mortgage calculator, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 9:14 AM 0 comments
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Wednesday, October 14, 2009
UK banks are ripping us off
It's getting cheaper for banks to borrow money, but not for the likes of you and me.
Last week, the British Bankers Association - a trade body for banks, funnily enough - published a factsheet called Your Mortgage and the Markets explaining why, although it may seem like banks are profiting hugely by pricing their mortgages much higher than they need to, actually they're not.
It is the second time lenders have been forced to defind how they price their mortgages, after a similar publication from a second trade body, the Council of Mortgage Lenders, a couple of months ago.
I'm not surprised that they feel they have to explain themselves.
Cast your mind back a year or so ago to when Bank Base Rate first started falling to its current record low. Lenders would pull their entire range of trackers before a Base Rate decision, only to release a new, slightly more expensive range, a few days later - when it was actually cheaper for them to borrow money from the Bank of England!
The explanation? Banks don't just borrow funds from the Bank of England. They borrow from each other. And actually, nowadays, the banks were quick to explain, it is the LIBOR rate (the rate at which banks lend to each other) that is the crucial factor in determining the interest rates of loans and mortgages. And as that wasn't moving, tracker rates wouldn't.
Now of course LIBOR has fallen as well, so that it is barely any higher than the Base Rate, and surprise surprise, the banks have changed their tune.
The banks argue that the Bank Base Rate, LIBOR and swap rates (traditionally the mechanism by which lenders secured cash for fixed rate mortgages) are no longer indicators - the rates offered to savers are apparently a better guide.
This is because, they say, with the wholesale and securitisation markets effectively closed, banks are forced to rely on raising money through savings accounts, which is a pretty expensive method at the best of times. Add in the fact that all banks are in the same boat, competing for the same savings business, and you can see why costs might start to creep up.
But that doesn't mean you can simply dismiss things like LIBOR and swap rates as indicators of where mortgage pricing should be. They may not be the be all and end all, but they remain very important factors.
And they also shine the light on just how big a cut the banks are taking at the moment, a fact brilliantly outlined by some research from lovemoney.com partner, Moneyfacts.
Let's start with the average two year mortgage - forever and a day the favourite mortgage of Brits. In September 2007, for a 75% loan-to-value mortgage, the average rate was about 0.18 percentage points above swap rates. A year later, that margin had increased to 0.7 percentage points.
Today, it stands at an extraordinary 2.79 percentage points above the swap rates.
The position is even worse with high loan-to-value mortgages. With a 90% mortgage, in September 2007, that margin stood at just 0.02 percentage points. By last September it had reached 1.34 percentage points. And last month it stood at a whopping 4.25 percentage points above swap rates. So they're typically making more than 212 times as much profit on the funds they borrow using swap rates, than they were just two years ago!
No wonder the banks want us to ignore swap rates!
Last week, the British Bankers Association - a trade body for banks, funnily enough - published a factsheet called Your Mortgage and the Markets explaining why, although it may seem like banks are profiting hugely by pricing their mortgages much higher than they need to, actually they're not.
It is the second time lenders have been forced to defind how they price their mortgages, after a similar publication from a second trade body, the Council of Mortgage Lenders, a couple of months ago.
I'm not surprised that they feel they have to explain themselves.
Cast your mind back a year or so ago to when Bank Base Rate first started falling to its current record low. Lenders would pull their entire range of trackers before a Base Rate decision, only to release a new, slightly more expensive range, a few days later - when it was actually cheaper for them to borrow money from the Bank of England!
The explanation? Banks don't just borrow funds from the Bank of England. They borrow from each other. And actually, nowadays, the banks were quick to explain, it is the LIBOR rate (the rate at which banks lend to each other) that is the crucial factor in determining the interest rates of loans and mortgages. And as that wasn't moving, tracker rates wouldn't.
Now of course LIBOR has fallen as well, so that it is barely any higher than the Base Rate, and surprise surprise, the banks have changed their tune.
The banks argue that the Bank Base Rate, LIBOR and swap rates (traditionally the mechanism by which lenders secured cash for fixed rate mortgages) are no longer indicators - the rates offered to savers are apparently a better guide.
This is because, they say, with the wholesale and securitisation markets effectively closed, banks are forced to rely on raising money through savings accounts, which is a pretty expensive method at the best of times. Add in the fact that all banks are in the same boat, competing for the same savings business, and you can see why costs might start to creep up.
But that doesn't mean you can simply dismiss things like LIBOR and swap rates as indicators of where mortgage pricing should be. They may not be the be all and end all, but they remain very important factors.
And they also shine the light on just how big a cut the banks are taking at the moment, a fact brilliantly outlined by some research from lovemoney.com partner, Moneyfacts.
Let's start with the average two year mortgage - forever and a day the favourite mortgage of Brits. In September 2007, for a 75% loan-to-value mortgage, the average rate was about 0.18 percentage points above swap rates. A year later, that margin had increased to 0.7 percentage points.
Today, it stands at an extraordinary 2.79 percentage points above the swap rates.
The position is even worse with high loan-to-value mortgages. With a 90% mortgage, in September 2007, that margin stood at just 0.02 percentage points. By last September it had reached 1.34 percentage points. And last month it stood at a whopping 4.25 percentage points above swap rates. So they're typically making more than 212 times as much profit on the funds they borrow using swap rates, than they were just two years ago!
No wonder the banks want us to ignore swap rates!
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Bank of England, credit crunch, interest rates, Loan calculator, UK loans rates, uk recession
# posted by Dr Search- Principal Consultant at the Search Clinic @ 9:36 AM 0 comments
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Tuesday, October 13, 2009
UK inflation falls to lowest in five years
The rate of UK inflation fell more than expected last month, dropping to the lowest level in five years, as the downturn kept a lid on price pressures.
The Consumer Prices Index (CPI) showed that prices rose 1.1pc in September compared with a year earlier. City economists had expected the figure would come in at 1.3pc. Prices have not registered such a small increase since September 2004.
The CPI measure is used by the Bank of England to set the level of interest rates, which the Bank's Monetary Policy Committee has signalled are likely to remain at low levels for months as it seeks to shore up a recovery.
Economists had expected deflationary pressures in the economy to drive prices down below the 1pc threshold on a CPI measure which would force Mervyn King, the Governor of the Bank of England, to write a letter of explanation to the Chancellor.
However, CPI has remained higher thanks to the weak pound and a rise in fuel duty, factors that have helped offset the absence of higher utility bills compared with a year ago.
The Bank has embarked on a series of radical policy measures to combat the twin threats of deflation and depression, including slashing interest rates to a record low of 0.5pc and pursuing a programme of printing money, or quantitative easing (QE), which has seen £150bn injected into the economy.
The broader measure of inflation, known as the retail price index, fell 1.4pc compared with September 2008. Economists had expected a figure of 1.5pc.
The wider measure of inflation, which includes house prices and mortgage interest payments - the Retail Prices Index - has been negative since April.
Sharply lower mortgage interest payments compared with a year earlier have helped to keep the index in negative territory.
The Consumer Prices Index (CPI) showed that prices rose 1.1pc in September compared with a year earlier. City economists had expected the figure would come in at 1.3pc. Prices have not registered such a small increase since September 2004.
The CPI measure is used by the Bank of England to set the level of interest rates, which the Bank's Monetary Policy Committee has signalled are likely to remain at low levels for months as it seeks to shore up a recovery.
Economists had expected deflationary pressures in the economy to drive prices down below the 1pc threshold on a CPI measure which would force Mervyn King, the Governor of the Bank of England, to write a letter of explanation to the Chancellor.
However, CPI has remained higher thanks to the weak pound and a rise in fuel duty, factors that have helped offset the absence of higher utility bills compared with a year ago.
The Bank has embarked on a series of radical policy measures to combat the twin threats of deflation and depression, including slashing interest rates to a record low of 0.5pc and pursuing a programme of printing money, or quantitative easing (QE), which has seen £150bn injected into the economy.
The broader measure of inflation, known as the retail price index, fell 1.4pc compared with September 2008. Economists had expected a figure of 1.5pc.
The wider measure of inflation, which includes house prices and mortgage interest payments - the Retail Prices Index - has been negative since April.
Sharply lower mortgage interest payments compared with a year earlier have helped to keep the index in negative territory.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Bank of England, credit crunch, home loans-rates-UK, inflation, Quantitative Easing, uk recession
# posted by Dr Search- Principal Consultant at the Search Clinic @ 10:40 AM 0 comments
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Monday, October 12, 2009
Loans rates to stay low until 2014
Loans interest rates will stay at rock bottom in the years to come as the labour Government tackles the wounded economy, a report says.
The cost of borrowing is to remain at its record low of 0.5pc until at least 2011 and remain below 2pc until 2014, according to a study by the Centre for Economics and Business Research (CEBR).
A weaker pound - slumping to just 1.40 US dollars and possibly falling below parity with the euro - is also expected.
The CEBR predicts the next government will have to engineer around £100 billion in tax rises and spending cuts to deal with the country's deficit.
Political parties are already vying to explain how they plan to address the dire public finances after next year's general election.
The report forecasts that should the Conservatives win power this will mean £20 billion in extra taxes with an £80 billion reduction in spending.
A future government will have to wrestle the budget deficit down to £50 billion by the 2014/15 financial year, a tough challenge as the CEBR also warns that the deficit will be £143 billion in that year without action.
The report also predicts the Bank of England will increase its quantitative easing (QE) programme - essentially printing money - by another £75 billion.
This month the Bank voted to not to increase its programme to boost the money supply from its current £175 billion.
But further QE is expected, not least because governor Mervyn King and two other committee members have already argued for a £75 billion boost to the scheme.
The cost of borrowing is to remain at its record low of 0.5pc until at least 2011 and remain below 2pc until 2014, according to a study by the Centre for Economics and Business Research (CEBR).
A weaker pound - slumping to just 1.40 US dollars and possibly falling below parity with the euro - is also expected.
The CEBR predicts the next government will have to engineer around £100 billion in tax rises and spending cuts to deal with the country's deficit.
Political parties are already vying to explain how they plan to address the dire public finances after next year's general election.
The report forecasts that should the Conservatives win power this will mean £20 billion in extra taxes with an £80 billion reduction in spending.
A future government will have to wrestle the budget deficit down to £50 billion by the 2014/15 financial year, a tough challenge as the CEBR also warns that the deficit will be £143 billion in that year without action.
The report also predicts the Bank of England will increase its quantitative easing (QE) programme - essentially printing money - by another £75 billion.
This month the Bank voted to not to increase its programme to boost the money supply from its current £175 billion.
But further QE is expected, not least because governor Mervyn King and two other committee members have already argued for a £75 billion boost to the scheme.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Bank of England, credit crunch, falling interest rates, interest rates, UK loans rates, uk recession
# posted by Dr Search- Principal Consultant at the Search Clinic @ 10:35 AM 0 comments
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Friday, October 09, 2009
Loans markets end week on a high as Ben Bernanke moves to reassure
Global loans markets experienced the best week in four months on the back of reassuring comments from Federal Reserve chairman Ben Bernanke and expectations of a strong set of results from US banks in the coming weeks.
In London, the FTSE100 closed up 7.23 points at 5,161.87, topping out a 173-point rise over the last five days, thanks in part to the UK trade deficit falling to its lowest level since 2006 as exporters took advantage of weakened sterling.
In London, the FTSE100 closed up 7.23 points at 5,161.87, topping out a 173-point rise over the last five days, thanks in part to the UK trade deficit falling to its lowest level since 2006 as exporters took advantage of weakened sterling.
In New York, the Dow Jones Industrial Average was up 27.13 points in late trading at 9814, some 327 points higher than 9487.7 at which it ended the previous week. In Japan, the Nikkei closed up 183.92 points at 10,016.39.
In the US, traders pinpointed Mr Bernanke's speech on the state of the Fed's balance sheet as the root cause of the end-of-week positive mood, in particular his comment that "when the economic outlook has improved sufficiently, we will be prepared to tighten," which economists interpreted as a sign that the central bank is willing to end some of its extraordinary interventionist policies in the near future.
The markets were also boosted by strengthening in US exports, bringing the trade deficit to $30.7bn in August, although this was in part due to the recent weakness in dollar, which rose more than one and had cents yesterday to $1.5932 on the back of the Fed chief's comments.
Banks were also in focus, as investors await results from the US banking sector, with third-quarter results due next week for banks including JP Morgan Chase and Goldman Sachs.
Investors are looking for strong profits and reduced write-downs as signs that the financial sector is beginning to get back on its feet after two years of heavy losses.
The only word of caution came from activist investor Carl Icahn, who said in a US television interview that stock markets have been acting in a "schizophrenic" way of late, and warned that investors could suffer "a bit of a bloodbath" if the economy experiences a "double-dip recession."
Mr Icahn warned that the economy remains "on a precipice," and added: "It could really go either way. I don't think anybody can really say which way it's going to go."
In the US, traders pinpointed Mr Bernanke's speech on the state of the Fed's balance sheet as the root cause of the end-of-week positive mood, in particular his comment that "when the economic outlook has improved sufficiently, we will be prepared to tighten," which economists interpreted as a sign that the central bank is willing to end some of its extraordinary interventionist policies in the near future.
The markets were also boosted by strengthening in US exports, bringing the trade deficit to $30.7bn in August, although this was in part due to the recent weakness in dollar, which rose more than one and had cents yesterday to $1.5932 on the back of the Fed chief's comments.
Banks were also in focus, as investors await results from the US banking sector, with third-quarter results due next week for banks including JP Morgan Chase and Goldman Sachs.
Investors are looking for strong profits and reduced write-downs as signs that the financial sector is beginning to get back on its feet after two years of heavy losses.
The only word of caution came from activist investor Carl Icahn, who said in a US television interview that stock markets have been acting in a "schizophrenic" way of late, and warned that investors could suffer "a bit of a bloodbath" if the economy experiences a "double-dip recession."
Mr Icahn warned that the economy remains "on a precipice," and added: "It could really go either way. I don't think anybody can really say which way it's going to go."
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Bernanke, Loan calculator, loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 10:29 AM 0 comments
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Thursday, October 08, 2009
Housing market bounce on shaky foundations
The UK housing market bounced back during September following its traditional seasonal slowdown, estate agents said.
Both the number of potential buyers registered with estate agents and the average number of properties sold per branch increased during the month, following a dip in August.
The National Association of Estate Agents said the figures showed that the recovery in the housing market, seen earlier this year, was strong enough to survive the seasonal drop in activity during July and August as potential buyers go on holiday.
But the number of properties estate agents had on their books dipped to 62, down from 64 in August, as the market continued to be characterised by a shortage of supply, which many economists believe has led to the recent price rises.
There was also a drop in the proportion of first time buyers purchasing property, with this group accounting for 26pc of sales, down from 36pc in August, but in line with the level seen for most of 2009.
The number was also well up on September last year, when only one in 10 buyers was taking their first step on to the property ladder.
The NAEA warned that more needed to be done to ensure the recovery continued, and it called on the Government to extend the current stamp duty holiday.
There qere calls on the labour Government to consider extending the stamp duty holiday, under which people buying a property for between £125,000 and £175,000 are exempt from the tax until the end of this year, in the same way as it has extended the car scrappage allowance scheme.
But the NAEA warned that first-time buyer numbers may have been inflated by the approach of the end of the stamp duty holiday on properties costing between £125,000 and £175,000.
Properties sold for an average of 10.9pc of their asking price during September, broadly unchanged from the previous month.
There has been a run of positive data on the housing market during the past few months, with all of the major house price indexes reporting some price rises.
But many economists have warned that the current stabilisation in the market is temporary, and they expect prices to start falling again in the coming months due to rising unemployment and the ongoing problems in the mortgage market.
Both the number of potential buyers registered with estate agents and the average number of properties sold per branch increased during the month, following a dip in August.
The National Association of Estate Agents said the figures showed that the recovery in the housing market, seen earlier this year, was strong enough to survive the seasonal drop in activity during July and August as potential buyers go on holiday.
But the number of properties estate agents had on their books dipped to 62, down from 64 in August, as the market continued to be characterised by a shortage of supply, which many economists believe has led to the recent price rises.
There was also a drop in the proportion of first time buyers purchasing property, with this group accounting for 26pc of sales, down from 36pc in August, but in line with the level seen for most of 2009.
The number was also well up on September last year, when only one in 10 buyers was taking their first step on to the property ladder.
The NAEA warned that more needed to be done to ensure the recovery continued, and it called on the Government to extend the current stamp duty holiday.
There qere calls on the labour Government to consider extending the stamp duty holiday, under which people buying a property for between £125,000 and £175,000 are exempt from the tax until the end of this year, in the same way as it has extended the car scrappage allowance scheme.
But the NAEA warned that first-time buyer numbers may have been inflated by the approach of the end of the stamp duty holiday on properties costing between £125,000 and £175,000.
Properties sold for an average of 10.9pc of their asking price during September, broadly unchanged from the previous month.
There has been a run of positive data on the housing market during the past few months, with all of the major house price indexes reporting some price rises.
But many economists have warned that the current stabilisation in the market is temporary, and they expect prices to start falling again in the coming months due to rising unemployment and the ongoing problems in the mortgage market.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: home loans, Loan calculator, new home sales, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:24 AM 0 comments
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Wednesday, October 07, 2009
Australia raises loans rates from 49 year low
The Reserve Bank of Australia signalled its confidence in the country’s economic recovery yesterday when it became the first G20 central bank to raise interest rates since the global downturn.
The move comes amid growing concern that the emergency rate cuts and liquidity operations put in place around the world over the last year may have set the stage for inflation and asset bubbles. Israel in August became the first developed economy to raise rates and South Korea could follow suit later this week.
In lifting Australia’s official cash rate by 0.25 percentage points from a 49 year low of 3 per cent, Glenn Stevens, governor of the Reserve Bank of Australia, said the economy had been stronger than expected, confidence had recovered and prospects for Asian trading partners “appear to be noticeably better”.
He said that Australia’s growth in 2010 was likely to “be close to trend”, interpreted by economists to mean 3 to 3.5 per cent, while suggesting the RBA was worried about a potential asset bubble in the housing market.
Investors cheered the news pushing the Australian dollar up by a percentage point against the US dollar, to 88.65 US cents.
Beyond Asia, Royal Bank of Canada predicted that “Norway will almost certainly be next at the end of this month and attention will turn to Canada and New Zealand”.
Australia managed to record only a quarter of gross domestic product contraction since the onset of the global downturn. The economy expanded 0.6 per cent between April and June compared with the previous quarter.
With Japan’s recovery from its harshest post-war slump still fragile, there are few expectations of a hike in the world’s second largest economy. The Bank of Japan cut its main policy rate to a meagre 0.1 per cent in December last year and the BoJ policy board voted unanimously to maintain the rate at its September meeting.
The move comes amid growing concern that the emergency rate cuts and liquidity operations put in place around the world over the last year may have set the stage for inflation and asset bubbles. Israel in August became the first developed economy to raise rates and South Korea could follow suit later this week.
In lifting Australia’s official cash rate by 0.25 percentage points from a 49 year low of 3 per cent, Glenn Stevens, governor of the Reserve Bank of Australia, said the economy had been stronger than expected, confidence had recovered and prospects for Asian trading partners “appear to be noticeably better”.
He said that Australia’s growth in 2010 was likely to “be close to trend”, interpreted by economists to mean 3 to 3.5 per cent, while suggesting the RBA was worried about a potential asset bubble in the housing market.
Investors cheered the news pushing the Australian dollar up by a percentage point against the US dollar, to 88.65 US cents.
Beyond Asia, Royal Bank of Canada predicted that “Norway will almost certainly be next at the end of this month and attention will turn to Canada and New Zealand”.
Australia managed to record only a quarter of gross domestic product contraction since the onset of the global downturn. The economy expanded 0.6 per cent between April and June compared with the previous quarter.
With Japan’s recovery from its harshest post-war slump still fragile, there are few expectations of a hike in the world’s second largest economy. The Bank of Japan cut its main policy rate to a meagre 0.1 per cent in December last year and the BoJ policy board voted unanimously to maintain the rate at its September meeting.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Aussie loans rates, consolidate debt loans, G20, home loans, Loan calculator
# posted by Dr Search- Principal Consultant at the Search Clinic @ 11:44 AM 0 comments
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Tuesday, October 06, 2009
0% credit loans deals are slipping away
Long term loans 0% deals and fees free deals are on the decline.
New research on credit cards last week made for some grim reading.
While it did suggest that the number of balance-transfer deals with no fees are rising, unfortunately, it didn't mean 0% balance transfer deals, because there are currently no cards that are both interest free and fee free on transfers. The last to offer this was the Abbey Zero card, but that deal has been changed for new applicants.
The research also found that the number of deals lasting at least 12 months has fallen considerably. I keep track of deals lasting more than 12 months and my findings correlate with theirs.
Back in 2007, we found that there were just five cards offering deals over 12 months. Last year there were 14. This year we've lost half of them. That still leaves seven to choose from though, right? Actually, it's not that simple.
All the cards charge a fee of 3%. (Or 2.98%, but let's not quibble about 200ths of a percent!)
This is because many cards are connected, which I have indicated by giving the cards a group. You can't take out a second card from any cards in the same group until you've cleared the balance and closed the card for a time, usually six months to two years.
New research on credit cards last week made for some grim reading.
While it did suggest that the number of balance-transfer deals with no fees are rising, unfortunately, it didn't mean 0% balance transfer deals, because there are currently no cards that are both interest free and fee free on transfers. The last to offer this was the Abbey Zero card, but that deal has been changed for new applicants.
The research also found that the number of deals lasting at least 12 months has fallen considerably. I keep track of deals lasting more than 12 months and my findings correlate with theirs.
Back in 2007, we found that there were just five cards offering deals over 12 months. Last year there were 14. This year we've lost half of them. That still leaves seven to choose from though, right? Actually, it's not that simple.
All the cards charge a fee of 3%. (Or 2.98%, but let's not quibble about 200ths of a percent!)
This is because many cards are connected, which I have indicated by giving the cards a group. You can't take out a second card from any cards in the same group until you've cleared the balance and closed the card for a time, usually six months to two years.
Why are these deals declining?
These deals are great at sucking people in and we usually end up falling for one of the many costly catches, or simply being too lazy to switch our card deals at the end.
However, lenders are becoming less inclined to lend a load of money for almost nothing up front, as they need to make every penny that they lend work for them during these uncertain times.
These deals are great at sucking people in and we usually end up falling for one of the many costly catches, or simply being too lazy to switch our card deals at the end.
However, lenders are becoming less inclined to lend a load of money for almost nothing up front, as they need to make every penny that they lend work for them during these uncertain times.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: home loans, Loan calculator, loans, loans rates, UK loans rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 1:23 PM 0 comments
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Monday, October 05, 2009
Britons pay off £7bn of home loans, says Bank of England
Britons reduced their home loans mortgage debt by £7bn during the second quarter of the year, according to the Bank of England.
Recent falls in house prices and the economic downturn have put people off taking money out of their property, leading to equity withdrawal being negative for the fifth quarter in a row
The rate at which people are repaying their mortgages is broadly similar to the first quarter of the year, when home owners made net mortgage repayments of £7.3bn, according to the Bank of England.
Home owners' focus on paying down their mortgages is in stark contrast to previous years, when people released equity from their properties to fund large purchases.
While people's focus on paying off their debts may be more prudent than tapping into their housing wealth to supplement their spending, it is bad news for beleaguered retailers.
The figures show that households spent the equivalent of 2.9pc of their post-tax income on reducing their mortgages. The latest figures are a far cry from the record £17.09bn of equity that was unlocked during the final quarter of 2003.
Equity withdrawal enables home owners to cash in on rising house prices by increasing their mortgages to convert some of the rise in the value of their home into cash. The money is typically used to fund big purchases such as cars or home improvements, or for debt consolidation.
But while people feel confident about increasing the size of their mortgage debt when house prices are booming, they are far less inclined to do so when they are falling and unemployment is rising.
House price falls of more than 20pc since the market peaked in July 2007 also mean many people no longer have sufficient equity left in their property for them to withdraw, even though house prices rose for the fifth month in a row in September, according to new figures from Nationwide Building Society.
The credit crunch has also led to banks and building societies tightening their lending criteria, making it more difficult and expensive for people to extend their mortgage, particularly if they have only a small equity stake left in their home.
Recent falls in house prices and the economic downturn have put people off taking money out of their property, leading to equity withdrawal being negative for the fifth quarter in a row
The rate at which people are repaying their mortgages is broadly similar to the first quarter of the year, when home owners made net mortgage repayments of £7.3bn, according to the Bank of England.
Home owners' focus on paying down their mortgages is in stark contrast to previous years, when people released equity from their properties to fund large purchases.
While people's focus on paying off their debts may be more prudent than tapping into their housing wealth to supplement their spending, it is bad news for beleaguered retailers.
The figures show that households spent the equivalent of 2.9pc of their post-tax income on reducing their mortgages. The latest figures are a far cry from the record £17.09bn of equity that was unlocked during the final quarter of 2003.
Equity withdrawal enables home owners to cash in on rising house prices by increasing their mortgages to convert some of the rise in the value of their home into cash. The money is typically used to fund big purchases such as cars or home improvements, or for debt consolidation.
But while people feel confident about increasing the size of their mortgage debt when house prices are booming, they are far less inclined to do so when they are falling and unemployment is rising.
House price falls of more than 20pc since the market peaked in July 2007 also mean many people no longer have sufficient equity left in their property for them to withdraw, even though house prices rose for the fifth month in a row in September, according to new figures from Nationwide Building Society.
The credit crunch has also led to banks and building societies tightening their lending criteria, making it more difficult and expensive for people to extend their mortgage, particularly if they have only a small equity stake left in their home.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Bank of England, consolidate debt loans, credit crunch, home loans, Loan calculator, loans, mortgage calculator
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Friday, October 02, 2009
More US jobs lost than expected
The US economy lost 263,000 jobs in September, which was more than had been expected, according to official non-farm payrolls figures.
The jobless rate rose to a fresh 26-year high of 9.8% from August's figure of 9.7% as the US economy has shed 7.6 million jobs since the recession began.
The number in employment has now fallen for 21 consecutive months.
There was more bad news from the Labor Department, which revised its figures for July and August to show 13,000 more jobs lost than previously reported.
The economy as a whole is expected to have grown in the past three months, but recovery in the jobs market tends to lag behind the rest of the economy.
Since the start of the recession in December 2007, the number of people out of work has risen by 7.6 million to 15.1 million.
Government employment, which has been one of the factors boosting the economy in the past year, fell by 53,000 in September.
The other big areas of job losses were construction, manufacturing and retail.
The jobless rate rose to a fresh 26-year high of 9.8% from August's figure of 9.7% as the US economy has shed 7.6 million jobs since the recession began.
The number in employment has now fallen for 21 consecutive months.
There was more bad news from the Labor Department, which revised its figures for July and August to show 13,000 more jobs lost than previously reported.
The economy as a whole is expected to have grown in the past three months, but recovery in the jobs market tends to lag behind the rest of the economy.
Since the start of the recession in December 2007, the number of people out of work has risen by 7.6 million to 15.1 million.
Government employment, which has been one of the factors boosting the economy in the past year, fell by 53,000 in September.
The other big areas of job losses were construction, manufacturing and retail.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Loan calculator, refinancing rates, unemployment, US loans rates
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Thursday, October 01, 2009
UK mortgage lending increases- Bank of England
Mortgage lending increased after a dip in July but economists suggested the recovery in the housing market may be “losing steam”.
Net mortgage lending – which strips out redemptions and repayments – climbed by £1 billion in August from the previous month to £1.227 trillion, according to the Bank of England.
The figures also suggested that the number of mortgage approvals for those buying a new home remained steady at 52,317 in August, marginally down from 52,404 the previous month.
Numbers remortgaging also fell – but more markedly to 29,000 in August, down from almost 34,000 in July.
Net mortgage lending – which strips out redemptions and repayments – climbed by £1 billion in August from the previous month to £1.227 trillion, according to the Bank of England.
The figures also suggested that the number of mortgage approvals for those buying a new home remained steady at 52,317 in August, marginally down from 52,404 the previous month.
Numbers remortgaging also fell – but more markedly to 29,000 in August, down from almost 34,000 in July.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Bank of England, mortgage calculator, UK loans rates, uk recession
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Wednesday, September 30, 2009
Thousands of rejected loans complaints to be reopened, under FSA plans
Thousands of rejected customer complaints against banks and other lenders are to be reopened under plans by the City Watchdog to clampdown on loans insurance products.
Companies responsible for selling more than 40 per cent of single premium payment protection policies with secured and unsecured personal loans have agreed to review their sales and compensate customers who were mis-sold the product.
The Financial Service Authority now wants to target other companies which have mis-sold PPI which they offered alongside credit cards and secured loans.
It wants all of the 185,000 complaints - concerning every type of PPI - rejected by firms during the past five years, to be reopened.
It comes after the regulator said companies had been rejecting 60 per cent of the PPI complaints they had received. Of these, 16 per cent had then gone to the Financial Ombudsman Service where 80 per cent were then upheld in the customer’s favour.
PPI policies are designed to offer peace of mind that repayments will be covered in times of crisis, such as illness or unemployment - but they can add as much as £900 to a £5,000 three year loan.
Many customers find it difficult to cancel the policies once they are taken out and some are even unaware that they have bought the policy alongside their loan.
The FSA said it is giving banks and other lenders a “last chance” and that they should “get their house in order” over claims of mis-selling.
Jon Pain, FSA managing director of retail markets, said: “Consumers should not be pressured or deceived into buying PPI and they are entitled to have a policy properly explained to them.
“It is unacceptable that despite previous warnings about poor sales practices, backed by 22 enforcement cases and significant fines, the PPI sector still needs the FSA to intervene on this.”
Companies responsible for selling more than 40 per cent of single premium payment protection policies with secured and unsecured personal loans have agreed to review their sales and compensate customers who were mis-sold the product.
The Financial Service Authority now wants to target other companies which have mis-sold PPI which they offered alongside credit cards and secured loans.
It wants all of the 185,000 complaints - concerning every type of PPI - rejected by firms during the past five years, to be reopened.
It comes after the regulator said companies had been rejecting 60 per cent of the PPI complaints they had received. Of these, 16 per cent had then gone to the Financial Ombudsman Service where 80 per cent were then upheld in the customer’s favour.
PPI policies are designed to offer peace of mind that repayments will be covered in times of crisis, such as illness or unemployment - but they can add as much as £900 to a £5,000 three year loan.
Many customers find it difficult to cancel the policies once they are taken out and some are even unaware that they have bought the policy alongside their loan.
The FSA said it is giving banks and other lenders a “last chance” and that they should “get their house in order” over claims of mis-selling.
Jon Pain, FSA managing director of retail markets, said: “Consumers should not be pressured or deceived into buying PPI and they are entitled to have a policy properly explained to them.
“It is unacceptable that despite previous warnings about poor sales practices, backed by 22 enforcement cases and significant fines, the PPI sector still needs the FSA to intervene on this.”
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Labels: consolidate debt loans, Loan calculator, loans, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 7:59 AM 0 comments
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Tuesday, September 29, 2009
UK savings rates hit all time low
UK savings rates have sunk to a new all time low, according to the Bank of England, even though mortgage rates have continued to creep upwards.
The figures come despite official data that suggests consumers want to save money more than at any time in the last six years, as they tighten their belts to cope with the recession.
Despite the all-time low savings rates that banks and building societies are offering, the so-called savings ratio has climbed to the highest level since 2003.
The figures come despite official data that suggests consumers want to save money more than at any time in the last six years, as they tighten their belts to cope with the recession.
Despite the all-time low savings rates that banks and building societies are offering, the so-called savings ratio has climbed to the highest level since 2003.
The ratio, which measures what proportion of their earnings Britons are putting aside, rose to 5.6 per cent in the second quarter of the year – the highest level since 2003, and well above the 1.7 per cent level of last year.
Prudent households, however, are being punished with wafer-thin savings rates, the Bank of England figures suggest.
The average bank instant access account, the most popular form of savings accounts, paid just 0.72 per cent in August, down from 0.74 per cent the month before and a fraction of the 3.1 per cent offered a year ago. It is the lowest rate the Bank of England has recorded since it started monitoring these rates in 1993.
Cash Individual Savings Account, a tax free savings vehicle, now offer a mere 0.41 per cent, slipping from 0.42 in July and a tenth of the level they offered a year ago.
Bank of England figures also indicate that while savers are failing to benefit, mortgage holders are also suffering.
Prudent households, however, are being punished with wafer-thin savings rates, the Bank of England figures suggest.
The average bank instant access account, the most popular form of savings accounts, paid just 0.72 per cent in August, down from 0.74 per cent the month before and a fraction of the 3.1 per cent offered a year ago. It is the lowest rate the Bank of England has recorded since it started monitoring these rates in 1993.
Cash Individual Savings Account, a tax free savings vehicle, now offer a mere 0.41 per cent, slipping from 0.42 in July and a tenth of the level they offered a year ago.
Bank of England figures also indicate that while savers are failing to benefit, mortgage holders are also suffering.
Despite some high-profile attractive deals that have been issued in recent weeks, during August the average two-year fixed rate mortgage edged up from 4.42 to 4.43 per cent. Five-year fixed rate home loans climbed from 5.68 per cent to 5.72 per cent.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Bank of England, falling interest rates, home loans, interest rates, loans rates, UK loans rates
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Monday, September 28, 2009
Bank of England defends Mervyn King over loans rates
Mervyn King is not trying to talk down the Pound, say Bank of England sources, who insist that the currency and loans markets have misinterpreted the governor’s comments.
Sterling dropped below €1.09 and $1.60 on Friday, its lowest for nearly six months and four months respectively.
Market traders attributed the weakness to a Bank bulletin last week which suggested that the Pound’s “sustainable” exchange rate had fallen. It was followed by an interview with King, in which he said the lower pound was “helpful” for the rebalancing of the economy.
Traders accused the Bank of trying to talk down the pound deliberately. It countered that the bulletin comment was an attempt to explain the fall in sterling that had already occurred since 2007, and was not a suggestion that it should fall further.
Sterling dropped below €1.09 and $1.60 on Friday, its lowest for nearly six months and four months respectively.
Market traders attributed the weakness to a Bank bulletin last week which suggested that the Pound’s “sustainable” exchange rate had fallen. It was followed by an interview with King, in which he said the lower pound was “helpful” for the rebalancing of the economy.
Traders accused the Bank of trying to talk down the pound deliberately. It countered that the bulletin comment was an attempt to explain the fall in sterling that had already occurred since 2007, and was not a suggestion that it should fall further.
Similarly, King’s comment was to a Newcastle newspaper that is running a campaign to boost local exports. The fall already recorded would be “helpful” in that effort, he said.
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Labels: Bank of England, consolidate debt loans, falling interest rates, home loans, interest rates
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Friday, September 25, 2009
Crisis – what crisis- as large homes defy downturn
Large families are returning to the property market with gusto, chasing homes in the London neighbourhoods with green spaces, good schools, period architecture, smart little shops and farmers’ markets.
Prices are recovering most strongly in the area of southwest London stretching from Fulham to Richmond, taking in Chiswick, Clapham, Wandsworth and Wimbledon — amid rising concern that values in locations outside the capital could stagnate for some years.
These suburbs, popular with City bankers and members of the professions and their families, were the first to be affected in the downturn. But prime southwest London is now resurgent, eclipsing Belgravia, Chelsea and the rest of prime Central London.
Prices are recovering most strongly in the area of southwest London stretching from Fulham to Richmond, taking in Chiswick, Clapham, Wandsworth and Wimbledon — amid rising concern that values in locations outside the capital could stagnate for some years.
These suburbs, popular with City bankers and members of the professions and their families, were the first to be affected in the downturn. But prime southwest London is now resurgent, eclipsing Belgravia, Chelsea and the rest of prime Central London.
In the past three months, prices have climbed by an average of 8.4 per cent, after growth of 6.4 per cent in the previous quarter. Prices are 2.5 per cent higher than a year ago, cancelling out the decline that followed the fall of Lehman Brothers.
Savills, the estate agent, calculates that the average £1 million home in southwest London is appreciating in value by £741 a day, whereas the average £2 million Chelsea property is adding only £713 a day.
Bankers, or at least their wives, who are looking for a home are prepared to spend about £2 million — a typical boomtime budget. Nearly three buyers are pursuing each property for sale.
Savills, the estate agent, calculates that the average £1 million home in southwest London is appreciating in value by £741 a day, whereas the average £2 million Chelsea property is adding only £713 a day.
Bankers, or at least their wives, who are looking for a home are prepared to spend about £2 million — a typical boomtime budget. Nearly three buyers are pursuing each property for sale.
The good mood in Clapham, Fulham and Wandsworth and the other leafy suburbs is beginning to spread into other parts of London, including Docklands. Prices are also rising in the commutable parts of Kent and Surrey. Winchester, in Hampshire, is another bright spot.
But Savills is much less optimistic about the outlook for other regions, fearing the development of a two-tier market of some duration. Yolande Barnes, a Savills research director, said that buyers remained locked out by lenders’ insistence on hefty deposits. Unemployment, public sector spending cuts and the likelihood of higher taxes could also be a drag on prices.
Ms Barnes believes that the shortage of credit available to such buyers may contribute to a permanent reversal of the century-long trend for increased ownership. Fewer than 70 per cent of householders own or are buying their home, a level not seen since the mid-1990s.
But Savills is much less optimistic about the outlook for other regions, fearing the development of a two-tier market of some duration. Yolande Barnes, a Savills research director, said that buyers remained locked out by lenders’ insistence on hefty deposits. Unemployment, public sector spending cuts and the likelihood of higher taxes could also be a drag on prices.
Ms Barnes believes that the shortage of credit available to such buyers may contribute to a permanent reversal of the century-long trend for increased ownership. Fewer than 70 per cent of householders own or are buying their home, a level not seen since the mid-1990s.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: credit crunch, home loans, Loan calculator, loans, UK loans rates, uk recession
# posted by Dr Search- Principal Consultant at the Search Clinic @ 9:34 AM 0 comments
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Thursday, September 24, 2009
Bank of England says UK recovery could prove a false dawn
The Bank of England warned yesterday that Britain’s tentative recovery could be a “false dawn”, despite issuing a relatively upbeat economic forecast and revealing that none of its policymakers saw the need to expand the asset purchase stimulus programme this month.
According to the minutes of the Bank’s rate-setting meeting this month, published yesterday, all nine members of its Monetary Policy Committee (MPC) voted to maintain Britain’s key interest rate at its record low of 0.5 per cent.
Giving an economic overview, the minutes said: “There had been a number of developments during the month with positive implications for the short term . . . But the lesson from previous financial crises was that they were not resolved quickly, and that there could be false dawns.
“The banking system still had to complete a process of balance sheet adjustment . . . High levels of public debt internationally and the persistence of global imbalances remained downside risks to the sustainability of the recovery.”
According to the minutes of the Bank’s rate-setting meeting this month, published yesterday, all nine members of its Monetary Policy Committee (MPC) voted to maintain Britain’s key interest rate at its record low of 0.5 per cent.
Giving an economic overview, the minutes said: “There had been a number of developments during the month with positive implications for the short term . . . But the lesson from previous financial crises was that they were not resolved quickly, and that there could be false dawns.
“The banking system still had to complete a process of balance sheet adjustment . . . High levels of public debt internationally and the persistence of global imbalances remained downside risks to the sustainability of the recovery.”
The minutes also showed the MPC voted unanimously to maintain the so-called quantitative easing (QE) programme — under which the Bank seeks to stimulate the economy by printing money and buying assets from banks — at £175 billion. This marked a strategic shift for Mervyn King, the Bank’s Governor, and David Miles, who had wanted to increase QE to a total of £200billion in August, but were overruled.
The minutes noted “the medium-term outlook had not changed markedly” since the new QE level was agreed last month”, adding that “in the absence of significant news about the medium term the case for adjusting the programme was now outweighed by the benefits of following through with the programme of asset purchases announced in August”.
Although Mr King and Mr Miles switched sides for this month’s QE vote, they still believe there could be a case for increasing the programme in the event that the fragile economic recovery falters. On Tuesday the Bank will host a seminar for about 50 of London’s leading economists to address queries over its efforts to pump cash into the economy -- a development that the MPC remains concerned about.
The minutes noted “the medium-term outlook had not changed markedly” since the new QE level was agreed last month”, adding that “in the absence of significant news about the medium term the case for adjusting the programme was now outweighed by the benefits of following through with the programme of asset purchases announced in August”.
Although Mr King and Mr Miles switched sides for this month’s QE vote, they still believe there could be a case for increasing the programme in the event that the fragile economic recovery falters. On Tuesday the Bank will host a seminar for about 50 of London’s leading economists to address queries over its efforts to pump cash into the economy -- a development that the MPC remains concerned about.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Bank of England, home loans, interest rates, MPC, Quantitative Easing
# posted by Dr Search- Principal Consultant at the Search Clinic @ 9:04 AM 0 comments
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Wednesday, September 23, 2009
UK loans rates may reach 2% next year
The Bank of England may start to raise interest rates next spring and could take the cost of borrowing to 2 per cent by the end of next year, according to the latest economic forecasts.
The Bank has held rates at a record low of 0.5 per cent to help businesses and consumers to contend with the recession, but the central bank will need room to act in the coming months if inflationary pressures become a worry, the employers’ organisation said. Ian McCafferty, the CBI’s chief economic adviser, said that he expected inflation to be volatile next year, renewing pressure on the Bank.
The CBI forecasts that the consumer prices index will rise by 2.4 per cent during the first quarter of next year. The Bank’s official target is to limit inflation to 2 per cent.
However, Mr McCafferty said that the CBI would welcome interest rate rises next year as a sign that normality was beginning to return to the economic cycle. “It is fairly clear to us that the Bank of England will be maintaining the very accommodative stance that it has had throughout the period. But the Bank will want to avoid problems it has faced in previous cycles, where it gets boxed in and finds it hard to act over monetary policy,” he said.
His comments came as the CBI upgraded its forecasts for Britain’s economic prospects, predicting that Britain would emerge from recession by the end of this month.
The CBI’s predictions of quarter-on-quarter growth in GDP of 0.3 per cent in the third quarter and 0.4 per cent in the fourth represent a sharp rise in confidence from the business group. At its previous economic forecast in June, it said that the economy would shrink by 0.1 per cent in the third quarter and stagnate with flat growth for the rest of the year.
The Bank has held rates at a record low of 0.5 per cent to help businesses and consumers to contend with the recession, but the central bank will need room to act in the coming months if inflationary pressures become a worry, the employers’ organisation said. Ian McCafferty, the CBI’s chief economic adviser, said that he expected inflation to be volatile next year, renewing pressure on the Bank.
The CBI forecasts that the consumer prices index will rise by 2.4 per cent during the first quarter of next year. The Bank’s official target is to limit inflation to 2 per cent.
However, Mr McCafferty said that the CBI would welcome interest rate rises next year as a sign that normality was beginning to return to the economic cycle. “It is fairly clear to us that the Bank of England will be maintaining the very accommodative stance that it has had throughout the period. But the Bank will want to avoid problems it has faced in previous cycles, where it gets boxed in and finds it hard to act over monetary policy,” he said.
His comments came as the CBI upgraded its forecasts for Britain’s economic prospects, predicting that Britain would emerge from recession by the end of this month.
The CBI’s predictions of quarter-on-quarter growth in GDP of 0.3 per cent in the third quarter and 0.4 per cent in the fourth represent a sharp rise in confidence from the business group. At its previous economic forecast in June, it said that the economy would shrink by 0.1 per cent in the third quarter and stagnate with flat growth for the rest of the year.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, home loans, interest rates, UK loans rates, uk recession
# posted by Dr Search- Principal Consultant at the Search Clinic @ 9:36 AM 0 comments
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Tuesday, September 22, 2009
After the rises investors now take profits
The FTSE 100 slid into negative territory yesterday as investors booked profits after a six day winning streak came to an end.
The index closed 38.53 points down at 5,134.36, after hitting an intra-day low of 5,108.35.
The biggest drag on the London market came from the mining sector, with shares falling on the back of lower commodity prices. Fresnillo, the silver miner, fell 28½p to 753½p, Rio Tinto slid 93½p to £26.44½p and Vedanta Resources slipped 70p to £19.40 after Goldman Sachs cut its rating to “neutral”. Kazakhmys, a key riser last week, also fell after a rating downgrade, tumbling 37p to £10.87p after Citigroup cut its recommendation to “hold”.
Even speculation that BHP Billiton could be ready to spark a new round of consolidation in the global mining sector, possibly via a bid for Anglo American, was not enough to ignite any excitement. BHP fell 46½p to £17.03 while Anglo American closed 21½p down at £20.50½p. The acquisitive Xstrata fell 35p to 930p while Lonmin, the platinum miner linked with a takeover, fell 45p to £16.99.
With investors in the mood to book profits, it was no surprise that some of last week’s leading risers lost ground. Wolseley, the plumbing merchant, fell 59p to £14.28 while Autonomy, the software group, which was higher after its entry into the database search market last week, fell 37p to £15.37 despite a “buy” note from Investec.
Tullow Oil surged after multiple oil finds last week, but it slid 21p to £11.58p while other oil stocks also lost ground as the crude price dropped below $70 a barrel. BG Group fell 28p to £11.11 and Cairn fell 12p to £27.17.
New York: A stronger dollar ignited a sell off in commodities, including oil and gold, which weighed on energy and material stocks. The Dow Jones industrial average was 41.34 points down at 9,778.86 at the close.
The biggest drag on the London market came from the mining sector, with shares falling on the back of lower commodity prices. Fresnillo, the silver miner, fell 28½p to 753½p, Rio Tinto slid 93½p to £26.44½p and Vedanta Resources slipped 70p to £19.40 after Goldman Sachs cut its rating to “neutral”. Kazakhmys, a key riser last week, also fell after a rating downgrade, tumbling 37p to £10.87p after Citigroup cut its recommendation to “hold”.
Even speculation that BHP Billiton could be ready to spark a new round of consolidation in the global mining sector, possibly via a bid for Anglo American, was not enough to ignite any excitement. BHP fell 46½p to £17.03 while Anglo American closed 21½p down at £20.50½p. The acquisitive Xstrata fell 35p to 930p while Lonmin, the platinum miner linked with a takeover, fell 45p to £16.99.
With investors in the mood to book profits, it was no surprise that some of last week’s leading risers lost ground. Wolseley, the plumbing merchant, fell 59p to £14.28 while Autonomy, the software group, which was higher after its entry into the database search market last week, fell 37p to £15.37 despite a “buy” note from Investec.
Tullow Oil surged after multiple oil finds last week, but it slid 21p to £11.58p while other oil stocks also lost ground as the crude price dropped below $70 a barrel. BG Group fell 28p to £11.11 and Cairn fell 12p to £27.17.
New York: A stronger dollar ignited a sell off in commodities, including oil and gold, which weighed on energy and material stocks. The Dow Jones industrial average was 41.34 points down at 9,778.86 at the close.
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Labels: consolidate debt loans, credit crunch, falling interest rates, Loan calculator, Oil
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Monday, September 21, 2009
Pound slips on Bank of England warning
Bank of England says that sterling's fall could reflect long term change in Britain's economy, with lower demand for its goods
The pound hit a five month low against the euro today after the Bank of England raised the prospect of a prolonged fall in the value of sterling against other currencies as a result of the credit crisis.
In its Quarterly Bulletin, the Bank tried to explain the reasons for the collapse in value of sterling since the final quarter of last year. It said: "It is possible that sterling's depreciation may be part of a more prolonged process of rebalancing of the UK economy, generating a fall in the long-run sustainable real exchange rate."
It pointed out that Britain has run current account deficits, financed by foreign investors buying British assets, since the mid-1990s. The financial crisis, however, may have forced those overseas investors to look elsewhere.
"The financial crisis may have led overseas investors to reasses their willingness or ability to purchase sterling assets and thereby finance the UK trade deficit. As a result, the long-run sustainable real sterling exchange rate ... may have fallen."
It also said that the Bank's programme of asset purchases - quantitative easing - may be having an effect. "Sterling will tend to depreciate if this policy causes portfolios to be balanced away from UK assets."
The Bank said: "There are several reasons why market participants might perceive that the financial crisis has prompted a fundamental shift in demand away from UK goods and services."
It said that Britain's higher dependence on financial services could have driven a permanent fall in the incomes of companies and households, while the global credit crisis could have caused a persistent fall in the global demand for financial services.
The euro rose 0.2 per cent against sterling to 90.79p, its highest since late April.
Against the dollar, it was down 0.6 per cent at $1.6175, near its weakest level in nearly three weeks.
The pound hit a five month low against the euro today after the Bank of England raised the prospect of a prolonged fall in the value of sterling against other currencies as a result of the credit crisis.
In its Quarterly Bulletin, the Bank tried to explain the reasons for the collapse in value of sterling since the final quarter of last year. It said: "It is possible that sterling's depreciation may be part of a more prolonged process of rebalancing of the UK economy, generating a fall in the long-run sustainable real exchange rate."
It pointed out that Britain has run current account deficits, financed by foreign investors buying British assets, since the mid-1990s. The financial crisis, however, may have forced those overseas investors to look elsewhere.
"The financial crisis may have led overseas investors to reasses their willingness or ability to purchase sterling assets and thereby finance the UK trade deficit. As a result, the long-run sustainable real sterling exchange rate ... may have fallen."
It also said that the Bank's programme of asset purchases - quantitative easing - may be having an effect. "Sterling will tend to depreciate if this policy causes portfolios to be balanced away from UK assets."
The Bank said: "There are several reasons why market participants might perceive that the financial crisis has prompted a fundamental shift in demand away from UK goods and services."
It said that Britain's higher dependence on financial services could have driven a permanent fall in the incomes of companies and households, while the global credit crisis could have caused a persistent fall in the global demand for financial services.
The euro rose 0.2 per cent against sterling to 90.79p, its highest since late April.
Against the dollar, it was down 0.6 per cent at $1.6175, near its weakest level in nearly three weeks.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Bank of England, credit crunch, Quantitative Easing, uk recession
# posted by Dr Search- Principal Consultant at the Search Clinic @ 10:46 AM 0 comments
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Friday, September 18, 2009
UK labour goverment borrowing highest on record
The appauling state of Britain’s public finances were laid bare today as the labour Government unveiled new figures that showed public sector net borrowing swelled by a record £16.1 billion in August.
It was the largest increase in the amount of new debt held by the UK Government since records began.
With the recession continuing to eat into government tax receipts, the Office for National Statistics said that public sector net borrowing hit £16.1 billion, up from £9.8 billion a year ago.
The figures will deal a further blow to Chancellor Alistair Darling’s hopes of restoring order to the nation’s finances.
The increase pushed net borrowing to £65.3 billion for the five months of the financial year so far, according to the ONS. That is more than twice the £26.1 billion seen at the same stage last year.
The public sector posted a net cash requirement of £10.3 billion in August - double the level of the same month a year ago.
It was the largest increase in the amount of new debt held by the UK Government since records began.
With the recession continuing to eat into government tax receipts, the Office for National Statistics said that public sector net borrowing hit £16.1 billion, up from £9.8 billion a year ago.
The figures will deal a further blow to Chancellor Alistair Darling’s hopes of restoring order to the nation’s finances.
The increase pushed net borrowing to £65.3 billion for the five months of the financial year so far, according to the ONS. That is more than twice the £26.1 billion seen at the same stage last year.
The public sector posted a net cash requirement of £10.3 billion in August - double the level of the same month a year ago.
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Thursday, September 17, 2009
Gordon Brown accused of lying to Parliament on cuts
Gordon Brown was accused last night of misleading the Commons after leaked Treasury papers disclosed unpublished government plans to cut spending by £36 billion a year by 2014.
David Cameron said that while Mr Brown was accusing the Conservatives of planning cuts of 10 per cent, and insisting that he did not want to do the same, his own officials were telling him that spending might have to be reduced by 9.3 per cent in five years.
The papers suggest that the Treasury privately took a far more pessimistic view about long-term unemployment and the cost of servicing the national debt than did independent commentators at the time of the Budget.
The document, headed HM Treasury Fiscal Tables, projects that spending will be reduced by just under 1 per cent in 2010-11, 4 per cent in 2011-12, just under 2 per cent in 2012-13 and 3 per cent in 2013-14.
Based on figures published at the time of the spring Budget, the Institute for Fiscal Studies (IFS) suggested that the Government would cut spending by 7 per cent by 2014. The Treasury’s own “assumptions”, based on Alistair Darling’s declared intention to cut the budget deficit in half by 2014, were more conservative than that. Its figures, circulated within the Treasury in June, suggested that social security spending would rise to £193billion, a real-terms increase of 2.1 per cent, as late as 2013-14, squeezing government spending elsewhere.
The papers also project that debt interest payments will rise from £27billion this year to nearly £64billion in 2013-14. The IFS had based its figures on the payments rising to £52billion.The leak was damaging to Mr Brown but also presents a challenge to Mr Cameron, who has said that he will cut the deficit faster than Labour.
Conservative officials emphasised last night that the figures showed the scale of the task facing any government. They pointed out that their existing plans meant that they would begin cutting spending a year earlier than Labour.
Mr Cameron told a press conference that Mr Brown’s integrity was on the line. “Gordon Brown was denying something that his own civil servants were telling him was true,” he said. It was a “cover-up” of the true state of the nation’s finances.
“Wednesday after Wednesday, the Prime Minister stood up in the House of Commons and repeated the line that the coming battle was between Labour investment on the one hand and Tory cuts on the other,” he said. “All those words have turned to dust and, as I consistently warned week after week, reality has now caught up with our Prime Minister.”
Mr Cameron said that the Conservatives had been candid about the need for spending cuts and would spell out their plans in more detail closer to the next election. “Let me make it clear: they are not wrong to be planning cuts but they are wrong to try to cover up their plans for cuts,” he said.
“This is about honesty, it is about trust. This is about not taking people for fools and on this issue, as I have to say on so many others, the Prime Minister does not seem to have learnt.”
George Osborne, the Shadow Chancellor, went farther, saying: “This is about Gordon Brown misleading the House of Commons, not telling the public the truth about his own Budget.”
David Cameron said that while Mr Brown was accusing the Conservatives of planning cuts of 10 per cent, and insisting that he did not want to do the same, his own officials were telling him that spending might have to be reduced by 9.3 per cent in five years.
The papers suggest that the Treasury privately took a far more pessimistic view about long-term unemployment and the cost of servicing the national debt than did independent commentators at the time of the Budget.
The document, headed HM Treasury Fiscal Tables, projects that spending will be reduced by just under 1 per cent in 2010-11, 4 per cent in 2011-12, just under 2 per cent in 2012-13 and 3 per cent in 2013-14.
Based on figures published at the time of the spring Budget, the Institute for Fiscal Studies (IFS) suggested that the Government would cut spending by 7 per cent by 2014. The Treasury’s own “assumptions”, based on Alistair Darling’s declared intention to cut the budget deficit in half by 2014, were more conservative than that. Its figures, circulated within the Treasury in June, suggested that social security spending would rise to £193billion, a real-terms increase of 2.1 per cent, as late as 2013-14, squeezing government spending elsewhere.
The papers also project that debt interest payments will rise from £27billion this year to nearly £64billion in 2013-14. The IFS had based its figures on the payments rising to £52billion.The leak was damaging to Mr Brown but also presents a challenge to Mr Cameron, who has said that he will cut the deficit faster than Labour.
Conservative officials emphasised last night that the figures showed the scale of the task facing any government. They pointed out that their existing plans meant that they would begin cutting spending a year earlier than Labour.
Mr Cameron told a press conference that Mr Brown’s integrity was on the line. “Gordon Brown was denying something that his own civil servants were telling him was true,” he said. It was a “cover-up” of the true state of the nation’s finances.
“Wednesday after Wednesday, the Prime Minister stood up in the House of Commons and repeated the line that the coming battle was between Labour investment on the one hand and Tory cuts on the other,” he said. “All those words have turned to dust and, as I consistently warned week after week, reality has now caught up with our Prime Minister.”
Mr Cameron said that the Conservatives had been candid about the need for spending cuts and would spell out their plans in more detail closer to the next election. “Let me make it clear: they are not wrong to be planning cuts but they are wrong to try to cover up their plans for cuts,” he said.
“This is about honesty, it is about trust. This is about not taking people for fools and on this issue, as I have to say on so many others, the Prime Minister does not seem to have learnt.”
George Osborne, the Shadow Chancellor, went farther, saying: “This is about Gordon Brown misleading the House of Commons, not telling the public the truth about his own Budget.”
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Labels: consolidate debt loans, credit crunch, labour liars, Loan calculator, uk recession
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Wednesday, September 16, 2009
UK unemployment hits 14 year high of 2.47 million
British unemployment hit 2.47 million in July, its highest level since 1994, as 210,000 more people lost their jobs.
The number of people claiming jobseeker’s allowance rose by 24,400 to 1.61 million in August — the highest since May 1997 and the eighteenth monthly rise in a row, according to the Office for National Statistics (ONS).
The recession’s impact on young people was also underlined by jobless totals among 16 to 24-year-olds reaching 947,000 — the highest level since ONS records began in 1992.
The jobless rate among young people also hit a record 19.7 per cent, meaning one in five is looking for work.
Unemployment is set to rise despite indications that British economy has returned to growth.
Mervyn King, Governor of the Bank of England, said yesterday that there were signs that the British economy was growing again though he added that the strength of recovery remained "highly uncertain".
Earlier in the week, a European Commission study concluded the economies of Britain and Continental Europe would return to growth by the end of the year while last week a study from the National Institute of Economic and Social Research, a leading think-tank, said Britain was climbing out of recession.
However, both warned that, following the emergence from recession, a period of stagnation could follow.
The number of people claiming jobseeker’s allowance rose by 24,400 to 1.61 million in August — the highest since May 1997 and the eighteenth monthly rise in a row, according to the Office for National Statistics (ONS).
The recession’s impact on young people was also underlined by jobless totals among 16 to 24-year-olds reaching 947,000 — the highest level since ONS records began in 1992.
The jobless rate among young people also hit a record 19.7 per cent, meaning one in five is looking for work.
Unemployment is set to rise despite indications that British economy has returned to growth.
Mervyn King, Governor of the Bank of England, said yesterday that there were signs that the British economy was growing again though he added that the strength of recovery remained "highly uncertain".
Earlier in the week, a European Commission study concluded the economies of Britain and Continental Europe would return to growth by the end of the year while last week a study from the National Institute of Economic and Social Research, a leading think-tank, said Britain was climbing out of recession.
However, both warned that, following the emergence from recession, a period of stagnation could follow.
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Labels: Bank of England, credit crunch, Loan calculator, UK loans rates, uk recession, unemployment
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Tuesday, September 15, 2009
UK Inflation falls to 1.6%
Inflation fell less than expected in August to 1.6 per cent after rising fuel off set a decline in utility and food bills.
The Consumer Prices Index (CPI) measure of inflation - the labour Government's preferred measure - fell from 1.8 per cent in July and below the 1.4 per cent expected by analysts.
Retail Prices Index (RPI) deflation which includes mortgage interest payments and is used as a measure for workers' pay deals, rose to minus 1.3 per cent in August from minus 1.4 per cent in July.
Steep rises in food and fuel prices pushed CPI to a peak of 5.2 per cent last September. Price falls since then have seen the figure fall steeply.
The Consumer Prices Index (CPI) measure of inflation - the labour Government's preferred measure - fell from 1.8 per cent in July and below the 1.4 per cent expected by analysts.
Retail Prices Index (RPI) deflation which includes mortgage interest payments and is used as a measure for workers' pay deals, rose to minus 1.3 per cent in August from minus 1.4 per cent in July.
Steep rises in food and fuel prices pushed CPI to a peak of 5.2 per cent last September. Price falls since then have seen the figure fall steeply.
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Labels: inflation, Oil, uk recession
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Monday, September 14, 2009
House prices will take five years to return to peak
House prices will not return to the peak reached in autumn 2007 for at least another five years, according to Ernst & Young’s Item Club.
The influential group’s gloomy forecast contradicts the increasingly optimistic outlook of the Government and some commentators that the British economy has begun a sustained recovery.
The recent rise in property values is a “false dawn” that will not last beyond spring, Hetal Mehta, Item’s senior economic adviser, said. In a special report released today, Item predicts that homeowners are in for a drop in prices in next year’s first half and then two years of stagnation.
The recent rise in property values is a “false dawn” that will not last beyond spring, Hetal Mehta, Item’s senior economic adviser, said. In a special report released today, Item predicts that homeowners are in for a drop in prices in next year’s first half and then two years of stagnation.
Sustained recovery will start only in 2011 and take until at least 2014 to return prices to their 2007 high, Item says.
The housing market is sicklier than many think because several fundamental problems have not been solved. First-time buyers are continuing to find it very tough to get on the ladder, banks are reluctant to lend and many homeowners are trapped in negative equity and do not want to crystallise losses, Item said.
The housing market is sicklier than many think because several fundamental problems have not been solved. First-time buyers are continuing to find it very tough to get on the ladder, banks are reluctant to lend and many homeowners are trapped in negative equity and do not want to crystallise losses, Item said.
Rising unemployment — expected by Item to peak at 2.76 million, or 8.8 per cent next spring — will also hamper a strong rebound, it said. House prices have leapt in the past few months, partly because few properties have been put up for sale and well-off buyers with cash have snapped up those that have been listed for sale.
However, over the longer term, supply will freeze again, Item said, as cash buyers dried up and homeowners continued to be reluctant to sell while their property was worth less than it was a few years ago.
Would-be buyers would also be inhibited by a lack of attractive mortgage offers, Item believes. Although banks have promised to increase lending to mortgage customers, a greater priority is shrinking their balance sheets by reducing lending, it said. Mortgage availability was slightly up amid a plethora of funding packages created by the Government, but will stay very restricted, according to Item.
Would-be buyers would also be inhibited by a lack of attractive mortgage offers, Item believes. Although banks have promised to increase lending to mortgage customers, a greater priority is shrinking their balance sheets by reducing lending, it said. Mortgage availability was slightly up amid a plethora of funding packages created by the Government, but will stay very restricted, according to Item.
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Labels: home loans, interest rates, mortgage calculator, unemployment
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Friday, September 11, 2009
UK loans interest rate kept at 0.5% by Bank of England
The Bank of England’s Monetary Policy Committee voted yesterday to hold interest rates at 0.5 per cent for the sixth month running.
The MPC also voted to make no change to the pace at which it is pumping cash into the economy through its quantitative easing (QE) programme — retaining the size of the programme at £175 billion.
It said that it expected the programme would take another two months to complete.
In its statement, the MPC said: “The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5 per cent.
“The Committee also voted to continue with its programme of asset purchases totalling £175 billion financed by the issuance of central bank reserves.
“The Committee expects the announced programme to take another two months to complete. The scale of the programme will be kept under review.”
The move had been widely anticipated by the markets, but sterling rose slightly against the dollar and the euro on foreign exchange markets immediately after the announcement, rising by 0.7 cents to $1.659 against the greenback.
The decision follows several indications that the economy may be returning to growth after five quarters of recession — including a recovery in manufacturing output, signs of a rally in the housing market and news that activity in the services sector is expanding again.
And it comes after the shock decision, at August’s policy meeting, to expand the Bank’s programme of asset purchases from £125 billion to £175 billion — although Mervyn King, the Bank Governor, and two other MPC members, David Miles and Tim Besley, had voted to expand the programme to £200 billion.
Details of yesterday’s vote will emerge with publication of minutes of today’s meeting on September 23.
The MPC also voted to make no change to the pace at which it is pumping cash into the economy through its quantitative easing (QE) programme — retaining the size of the programme at £175 billion.
It said that it expected the programme would take another two months to complete.
In its statement, the MPC said: “The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5 per cent.
“The Committee also voted to continue with its programme of asset purchases totalling £175 billion financed by the issuance of central bank reserves.
“The Committee expects the announced programme to take another two months to complete. The scale of the programme will be kept under review.”
The move had been widely anticipated by the markets, but sterling rose slightly against the dollar and the euro on foreign exchange markets immediately after the announcement, rising by 0.7 cents to $1.659 against the greenback.
The decision follows several indications that the economy may be returning to growth after five quarters of recession — including a recovery in manufacturing output, signs of a rally in the housing market and news that activity in the services sector is expanding again.
And it comes after the shock decision, at August’s policy meeting, to expand the Bank’s programme of asset purchases from £125 billion to £175 billion — although Mervyn King, the Bank Governor, and two other MPC members, David Miles and Tim Besley, had voted to expand the programme to £200 billion.
Details of yesterday’s vote will emerge with publication of minutes of today’s meeting on September 23.
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Labels: Bank of England, interest rates, MPC, Quantitative Easing, UK loans rates, uk recession
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Thursday, September 10, 2009
Bank of England urged to punish high street lenders
The Bank of England should carry out its threat to penalise high street lenders by cutting the interest it pays on cash held by them in its reserve accounts, The Times monetary policy committee (MPC) recommends.
The plan was mooted last month by Mervyn King, the Bank Governor, as part of efforts to encourage lenders to inject more money into the financial system.
Four of the nine member panel of economic experts on The Times MPC thought that the Bank should press ahead with the plan.
Professor Charles Goodhart, of the London School of Economics, the most fervent backer of the scheme, said that the cash balances “piled up at the Bank of England” were “socially useless” and that the Bank should impose a negative interest rate on money held by each bank in excess of 2 per cent of their total assets.
HSBC, Royal Bank of Scotland, Barclays, Lloyds and Northern Rock held a total of £157 billion in central bank reserves at June 30, up from £90.6 billion at the end of 2008.
Sushil Wadhwani, a former external member of the Bank’s MPC, Rupert Pennant-Rea, a former Deputy Governor of the Bank of England, and Sir Steve Robson, former Second Permanent Secretary at the Treasury, also lent their backing to the plan.
Otherwise the panel was united in its call for interest rates to be kept unchanged at 0.5 per cent, where they have remained for five consecutive months, and for the Bank’s drive to jump-start the economy with huge injections of newly printed money to be halted for now with burgeoning signs that the recession is coming to an end.
The plan was mooted last month by Mervyn King, the Bank Governor, as part of efforts to encourage lenders to inject more money into the financial system.
Four of the nine member panel of economic experts on The Times MPC thought that the Bank should press ahead with the plan.
Professor Charles Goodhart, of the London School of Economics, the most fervent backer of the scheme, said that the cash balances “piled up at the Bank of England” were “socially useless” and that the Bank should impose a negative interest rate on money held by each bank in excess of 2 per cent of their total assets.
HSBC, Royal Bank of Scotland, Barclays, Lloyds and Northern Rock held a total of £157 billion in central bank reserves at June 30, up from £90.6 billion at the end of 2008.
Sushil Wadhwani, a former external member of the Bank’s MPC, Rupert Pennant-Rea, a former Deputy Governor of the Bank of England, and Sir Steve Robson, former Second Permanent Secretary at the Treasury, also lent their backing to the plan.
Otherwise the panel was united in its call for interest rates to be kept unchanged at 0.5 per cent, where they have remained for five consecutive months, and for the Bank’s drive to jump-start the economy with huge injections of newly printed money to be halted for now with burgeoning signs that the recession is coming to an end.
Many were surprised by the Bank’s decision last month to pump a fresh £50 billion into the economy to ensure that the recovery continued.
The decision to extend its programme of quantitative easing from £125 billion to £175 billion broke the ceiling set by the Chancellor of £150 billion.
The decision to extend its programme of quantitative easing from £125 billion to £175 billion broke the ceiling set by the Chancellor of £150 billion.
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Labels: Bank of England, home loans, interest rates, Quantitative Easing, UK loans rates
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Wednesday, September 09, 2009
Greenspan says financial crisis will reoccur
Alan Greenspan, the former US Federal Reserve chairman blamed in some quarters for not doing enough to prevent the financial crisis, has predicted that more crashes are inevitable.
Speaking a year after the collapse of Lehman Brothers, the US investment bank, Mr Greenspan said: "The crisis will happen again but it will be different. They (financial crises) are all different, but they have one fundamental source," he told the BBC. "That is the unquenchable capability of human beings when confronted with long periods of prosperity to presume that it will continue."
He added that, although the current crisis was triggered by the trade in US sub-prime mortgages, any factor could have been the catalyst. "Something sooner or later would have emerged", Mr Greenspan said.
The former US central bank chief claimed that the world's financial institutions should have foreseen the looming crisis. "The bankers knew that they were involved in an under pricing of risk and that at some point a correction would be made," he said. "I fear too many of them thought they would be able to spot the actual trigger point of the crisis in time to get out."
He also warned that Britain would be harder hit than the US by the current recession and collapse in world trade.
"Obviously we've both suffered very considerably but ... Britain is more globally oriented as an economy and the dramatic decline in exports globally and trade generally following the collapse of Lehman Brothers had dramatic effects in the financial system of Britain," Mr Greenspan said. "It's going to take a long while for you [Britain] to work your way through this."
But he cautioned that the path to recovery should steer clear of protectionism as applying strict regulations could hamper recent developments that have opened up global trade. "The most recent endeavour to re-regulate is a reaction to the crisis.
Speaking a year after the collapse of Lehman Brothers, the US investment bank, Mr Greenspan said: "The crisis will happen again but it will be different. They (financial crises) are all different, but they have one fundamental source," he told the BBC. "That is the unquenchable capability of human beings when confronted with long periods of prosperity to presume that it will continue."
He added that, although the current crisis was triggered by the trade in US sub-prime mortgages, any factor could have been the catalyst. "Something sooner or later would have emerged", Mr Greenspan said.
The former US central bank chief claimed that the world's financial institutions should have foreseen the looming crisis. "The bankers knew that they were involved in an under pricing of risk and that at some point a correction would be made," he said. "I fear too many of them thought they would be able to spot the actual trigger point of the crisis in time to get out."
He also warned that Britain would be harder hit than the US by the current recession and collapse in world trade.
"Obviously we've both suffered very considerably but ... Britain is more globally oriented as an economy and the dramatic decline in exports globally and trade generally following the collapse of Lehman Brothers had dramatic effects in the financial system of Britain," Mr Greenspan said. "It's going to take a long while for you [Britain] to work your way through this."
But he cautioned that the path to recovery should steer clear of protectionism as applying strict regulations could hamper recent developments that have opened up global trade. "The most recent endeavour to re-regulate is a reaction to the crisis.
The extraordinary impact of these global markets is making a lot of financial people feeling they have lost control. The problem is you cannot have free global trade with highly restrictive, regulated domestic markets."
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Labels: Aussie loans rates, credit crunch, Greenspan, Loan calculator, recession, sub prime loans, uk recession
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Tuesday, September 08, 2009
Gold rises above $1,000 an ounce
Gold prices on Tuesday hit a fresh six month high above $1,000 a troy ounce, as investors continued to worry about the re-emergence of inflation.
Traders said that the bulk of the buying came after a confluence of bullish chart signals triggered speculative flows into the precious metal.
In early morning trading in London, spot bullion traded as high as $1,005, up 1 per cent on the previous day. It is the third time that gold has moved above $1,000 since March 2008, when it hit a record high of $1,035. In New York, gold futures for delivery in December rose to $1,004 an ounce.
Gold has attracted investors since the collapse of Lehman Brothers last year as an insurance against the financial crisis, but also amid concern that the extraordinary steps taken by central banks to prop up the global economy could lead to higher inflation in 2010.
Hedge funds that made money last year by betting against the survival of Wall Street banks, including David Einhorn’s Greenlight Capital and hedge fund Paulson & Co, have bought gold this year as a way of betting against the ability of central banks to steer the world out of crisis without triggering inflation. Their strategies have drawn in more investors.
At the same time, retail investors have bought record amounts of bullion coins. The US Mint sold from January to August about 838,500 ounces of the popular American Eagle gold coin, up from 446,000 ounces in the same period of 2008.
The dollar’s recent slide against other currencies has helped underpin gold. Nevertheless, traders and analysts are doutbtful about the prospects of a substantial rally in the gold price beyond $1,000 an ounce because of lacklustre jewellery and industrial demand.
Jewellery demand for gold, traditionally the backbone of the bullion market, sank to a 5½-year low in the second quarter of 2009 due to global economic recession. High local prices in India, the world’s largest jewellery market, also weighed on demand, which fell 31 per cent to 88 tonnes in the second quarter, while demand in Turkey, another key market for gold jewellery, dropped 54 per cent to 19.2 tonnes.
Traders said that the bulk of the buying came after a confluence of bullish chart signals triggered speculative flows into the precious metal.
In early morning trading in London, spot bullion traded as high as $1,005, up 1 per cent on the previous day. It is the third time that gold has moved above $1,000 since March 2008, when it hit a record high of $1,035. In New York, gold futures for delivery in December rose to $1,004 an ounce.
Gold has attracted investors since the collapse of Lehman Brothers last year as an insurance against the financial crisis, but also amid concern that the extraordinary steps taken by central banks to prop up the global economy could lead to higher inflation in 2010.
Hedge funds that made money last year by betting against the survival of Wall Street banks, including David Einhorn’s Greenlight Capital and hedge fund Paulson & Co, have bought gold this year as a way of betting against the ability of central banks to steer the world out of crisis without triggering inflation. Their strategies have drawn in more investors.
At the same time, retail investors have bought record amounts of bullion coins. The US Mint sold from January to August about 838,500 ounces of the popular American Eagle gold coin, up from 446,000 ounces in the same period of 2008.
The dollar’s recent slide against other currencies has helped underpin gold. Nevertheless, traders and analysts are doutbtful about the prospects of a substantial rally in the gold price beyond $1,000 an ounce because of lacklustre jewellery and industrial demand.
Jewellery demand for gold, traditionally the backbone of the bullion market, sank to a 5½-year low in the second quarter of 2009 due to global economic recession. High local prices in India, the world’s largest jewellery market, also weighed on demand, which fell 31 per cent to 88 tonnes in the second quarter, while demand in Turkey, another key market for gold jewellery, dropped 54 per cent to 19.2 tonnes.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, falling interest rates, Gold, interest rates
# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:48 AM 0 comments
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Monday, September 07, 2009
We will sink, not swim, in a sea of new rules
Pay controls are a sign of panic. Leaders from Edward III to Edward Heath have discovered that they do not work
The Black Death of 1349 was a low probability, high impact event; so was the banking crisis of 2008, and the insolvency of Lehman Brothers. When such events do occur, political leaders are under pressure to respond, as the Emperor Hirohito of Japan had to respond to the atom bombs dropped on Hiroshima and Nagasaki in 1945. His comment was that the war had gone “not necessarily to Japan’s advantage”. Japan surrendered.
In the aftermath of the Black Death almost half the population died, resulting in an acute shortage of labourers. This shortage in turn led to higher pay and higher prices. King Edward III, who was one of the most successful monarchs in Europe, responded with a statute that fixed maximum wages.
This measure failed to prevent a further rise in wages and prices. Fifty years later legislation had extended to include fixed wages for bailiffs in cities and boroughs as well as rural districts. Pay controls, once adopted, have a nasty habit of spreading.
The Black Death of 1349 was a low probability, high impact event; so was the banking crisis of 2008, and the insolvency of Lehman Brothers. When such events do occur, political leaders are under pressure to respond, as the Emperor Hirohito of Japan had to respond to the atom bombs dropped on Hiroshima and Nagasaki in 1945. His comment was that the war had gone “not necessarily to Japan’s advantage”. Japan surrendered.
In the aftermath of the Black Death almost half the population died, resulting in an acute shortage of labourers. This shortage in turn led to higher pay and higher prices. King Edward III, who was one of the most successful monarchs in Europe, responded with a statute that fixed maximum wages.
This measure failed to prevent a further rise in wages and prices. Fifty years later legislation had extended to include fixed wages for bailiffs in cities and boroughs as well as rural districts. Pay controls, once adopted, have a nasty habit of spreading.
If City bankers are to be controlled, why not lawyers or accountants?
Panic leads to pay controls and pay controls fail to achieve their objectives. When governments try to close the loopholes, they end up with failed regulation. Most politicians and most bureaucrats have a better knowledge of politics than economic history. They plunge their countries into a sea of largely ineffective regulations, in which some businesses swim but others drown.
In examining the policy options on banking regulations that face the G20, one should not forget the contribution that the regulators made to the 2008 recession. British regulators failed to foresee the recession.
Panic leads to pay controls and pay controls fail to achieve their objectives. When governments try to close the loopholes, they end up with failed regulation. Most politicians and most bureaucrats have a better knowledge of politics than economic history. They plunge their countries into a sea of largely ineffective regulations, in which some businesses swim but others drown.
In examining the policy options on banking regulations that face the G20, one should not forget the contribution that the regulators made to the 2008 recession. British regulators failed to foresee the recession.
The banks may have failed badly in their judgment of risk, but so did the regulators, including the Treasury, the Bank of England and the Financial Services Authority.
It is not clear why further regulation should prevent another crash, when regulation did so little to prevent this one, and so much to make it worse. In particular, the retired Chairman of the Federal Reserve Board, Alan Greenspan, floated the United States economy on a tide of debt.
He was so afraid of the impact of a bubble imploding, that he always intervened to prevent it. When the dot.com bubble did implode, he allowed the sub-prime housing bubble to take its place and the housing bubble proved to be the more dangerous of the two.
In all this one should not forget the contribution of Bernard Madoff, or rather of the failure of the United States Securities and Exchange Commission (SEC) to detect what he was doing. They never did catch him before he handed himself in.
Last week the inspector general of the SEC, David Kotz, published his report into the fraud. It chronicled a series of warnings. For instance, as early as 2003 one hedge fund manager wrote to the SEC saying that he saw signs of a Ponzi scheme at Madoff’s New York business.
SEC officials did start an investigation, could not understand the answers Madoff gave them, and went away to look into something else they could understand. They might have saved at least five years’ growth of what became a $40 billion fraud.
There is a simple reason why the bankers who receive bonuses can usually outsmart the regulators. It is because the bonus bankers take the jobs that offer the highest rewards; they earn more than the regulators.
Successful investment bankers can count their pay in millions, whereas regulators are paid at most in hundreds of thousands. The job of an investment banker is more exciting, even if the job of a regulator can be more secure.
People who have the temperament of entrepreneurial bankers are not put off by the career risks of the entrepreneurial role. In any case, they are trained to find the best way through regulatory systems and to minimise taxes.
Oddly enough, it was not the taking of undue risks that was the detonator of the 2008 crisis. The common characteristic of the Madoff victims was that they were risk averse; they wanted a secure return, not a spectacular one.
Bankers were also largely risk averse. As Sir Martin Jacomb, a former director of the Bank of England, has put it: “At the heart of the catastrophe was a single regulatory error: the failure of Basel rules to impose weighty capital requirements on the super-senior tranche of securitised mortgage obligations held in banks’ trading books.”
It is not clear why further regulation should prevent another crash, when regulation did so little to prevent this one, and so much to make it worse. In particular, the retired Chairman of the Federal Reserve Board, Alan Greenspan, floated the United States economy on a tide of debt.
He was so afraid of the impact of a bubble imploding, that he always intervened to prevent it. When the dot.com bubble did implode, he allowed the sub-prime housing bubble to take its place and the housing bubble proved to be the more dangerous of the two.
In all this one should not forget the contribution of Bernard Madoff, or rather of the failure of the United States Securities and Exchange Commission (SEC) to detect what he was doing. They never did catch him before he handed himself in.
Last week the inspector general of the SEC, David Kotz, published his report into the fraud. It chronicled a series of warnings. For instance, as early as 2003 one hedge fund manager wrote to the SEC saying that he saw signs of a Ponzi scheme at Madoff’s New York business.
SEC officials did start an investigation, could not understand the answers Madoff gave them, and went away to look into something else they could understand. They might have saved at least five years’ growth of what became a $40 billion fraud.
There is a simple reason why the bankers who receive bonuses can usually outsmart the regulators. It is because the bonus bankers take the jobs that offer the highest rewards; they earn more than the regulators.
Successful investment bankers can count their pay in millions, whereas regulators are paid at most in hundreds of thousands. The job of an investment banker is more exciting, even if the job of a regulator can be more secure.
People who have the temperament of entrepreneurial bankers are not put off by the career risks of the entrepreneurial role. In any case, they are trained to find the best way through regulatory systems and to minimise taxes.
Oddly enough, it was not the taking of undue risks that was the detonator of the 2008 crisis. The common characteristic of the Madoff victims was that they were risk averse; they wanted a secure return, not a spectacular one.
Bankers were also largely risk averse. As Sir Martin Jacomb, a former director of the Bank of England, has put it: “At the heart of the catastrophe was a single regulatory error: the failure of Basel rules to impose weighty capital requirements on the super-senior tranche of securitised mortgage obligations held in banks’ trading books.”
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: Bank of England, credit crunch, recession, refinancing rates, Wall Street
# posted by Dr Search- Principal Consultant at the Search Clinic @ 9:21 AM 0 comments
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Friday, September 04, 2009
Caution prompts ECB to keep the monetary taps open
The European Central Bank (ECB) said yesterday that it was in no mood to withdraw the emergency measures it has been using to stimulate the eurozone economy in the face of the global financial crisis.
Jean-Claude Trichet, the President of the ECB, said that it was too soon to end its support measures. Apart from reducing interest rates, these have included pumping extra cash into the eurozone in an attempt to kick-start lending.
Speaking after the ECB voted to maintain interest rates in the eurozone at 1 per cent, Mr Trichet said the significant contraction in the 15-member zone had ended, but dismissed suggestions that the bank should now begin to unwind its support.
He added: “Today is not the time to exit. It is more of a bumpy road ahead. Uncertainty is high. Prudence and caution are still of the essence. Overall, the recovery is expected to be rather uneven.”
Mr Trichet confirmed that, later this month, the ECB would offer to lend unlimited funds to banks for the next year at a flat rate of 1 per cent. This is in line with the rate charged on the €442 billion (£384 billion) of 12-month funds that the ECB made available in June. The move defied predictions in some quarters that it might charge banks slightly more in a sign that monetary tightening was imminent.
His comments sent yields on the two year bonds issued by leading eurozone economies, such as Germany, to their lowest levels for six months.
Jean-Claude Trichet, the President of the ECB, said that it was too soon to end its support measures. Apart from reducing interest rates, these have included pumping extra cash into the eurozone in an attempt to kick-start lending.
Speaking after the ECB voted to maintain interest rates in the eurozone at 1 per cent, Mr Trichet said the significant contraction in the 15-member zone had ended, but dismissed suggestions that the bank should now begin to unwind its support.
He added: “Today is not the time to exit. It is more of a bumpy road ahead. Uncertainty is high. Prudence and caution are still of the essence. Overall, the recovery is expected to be rather uneven.”
Mr Trichet confirmed that, later this month, the ECB would offer to lend unlimited funds to banks for the next year at a flat rate of 1 per cent. This is in line with the rate charged on the €442 billion (£384 billion) of 12-month funds that the ECB made available in June. The move defied predictions in some quarters that it might charge banks slightly more in a sign that monetary tightening was imminent.
His comments sent yields on the two year bonds issued by leading eurozone economies, such as Germany, to their lowest levels for six months.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: ECB, euro, falling interest rates, Loan calculator, Quantitative Easing
# posted by Dr Search- Principal Consultant at the Search Clinic @ 3:52 PM 0 comments
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Thursday, September 03, 2009
Britain to lag world in emerging from recession
Britain's economy will lag other developed nations in emerging from recession, according to the Organisation for Economic Co-operation and Development (OECD).
The organisation, which exists to promote economic growth and development, said that several of the economies in the G7 group of developed nations would perform better during the whole of 2009 than it predicted in June — with Britain a glaring exception.
The news will come as an embarrassment to Gordon Brown and Alistair Darling ahead of this weekend's meeting of the G20 finance ministers in London and a summit in Pittsburgh beginning on September 24.
The OECD said that it now expected the UK economy to contract by 4.7 per cent for the year as a whole. That compares with the 4.3 per cent contraction it forecast in its June Economic Outlook forecast.
Britain was the only member of the G7 group of developed nations for which the Paris-based organisation has reduced its growth forecast since June. The OECD now expects the eurozone to suffer a 3.9 per cent contraction during the year, compared with the 4.8 per cent previously forecast, while the predicted contraction for Japan's economy has come down from 6.8 per cent to 5.6 per cent.
Within the eurozone, the outlook for Germany and France has improved significantly, with the German economy predicted to contract by 4.8 per cent this year — down from the 6.1 per cent forecast by the OECD in June. The organisation also expects the French economy to contract by only 2.1 per cent this year — down from the 3 per cent reduction it expected three months ago.
The organisation, which exists to promote economic growth and development, said that several of the economies in the G7 group of developed nations would perform better during the whole of 2009 than it predicted in June — with Britain a glaring exception.
The news will come as an embarrassment to Gordon Brown and Alistair Darling ahead of this weekend's meeting of the G20 finance ministers in London and a summit in Pittsburgh beginning on September 24.
The OECD said that it now expected the UK economy to contract by 4.7 per cent for the year as a whole. That compares with the 4.3 per cent contraction it forecast in its June Economic Outlook forecast.
Britain was the only member of the G7 group of developed nations for which the Paris-based organisation has reduced its growth forecast since June. The OECD now expects the eurozone to suffer a 3.9 per cent contraction during the year, compared with the 4.8 per cent previously forecast, while the predicted contraction for Japan's economy has come down from 6.8 per cent to 5.6 per cent.
Within the eurozone, the outlook for Germany and France has improved significantly, with the German economy predicted to contract by 4.8 per cent this year — down from the 6.1 per cent forecast by the OECD in June. The organisation also expects the French economy to contract by only 2.1 per cent this year — down from the 3 per cent reduction it expected three months ago.
It predicted that the UK economy would contract by 1 per cent during the third quarter of 2009 — lagging the US, Japan, Germany and France — and forecast it will experience zero growth during the fourth quarter of the year.
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: credit crunch, euro, G7, OECD, uk recession
# posted by Dr Search- Principal Consultant at the Search Clinic @ 11:57 AM 0 comments
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Wednesday, September 02, 2009
International Finance and Mortgages through Loans Calculators
International Finance and Mortgages through Loans Calculators 
The UK's leading overseas mortgage specialist can help you find the finance for your property abroad, and make the process as safe and as hassle free as possible.
We have helped thousands of people to arrange their mortgages in over 45 countries by working closely with overseas lenders and property professionals helping you to buy your property, whether this is for your own personal use or for investment purposes.
Our experienced teams of specialists ensure that every step of arranging your mortgage is handled promptly, efficiently and professionally. Fully independent, we can give you a free pre-application mortgage calculation to help in your search for a property.
. 1,000's of independent financial advisers, mortgage specialists, agents and developers worldwide benefit from using our services
. New countries continually added to mortgage portfolio
. In-depth local knowledge of all documentation required for various lenders, leading to faster mortgage offers. Use of extensive database of all relevant professionals, such as lawyers, surveyors, currency exchange and offshore company formation experts
. Competitive and exclusive lending terms
. Partnerships with expert companies that can support every step of the overseas property purchase
. New countries continually added to mortgage portfolio
. In-depth local knowledge of all documentation required for various lenders, leading to faster mortgage offers. Use of extensive database of all relevant professionals, such as lawyers, surveyors, currency exchange and offshore company formation experts
. Competitive and exclusive lending terms
. Partnerships with expert companies that can support every step of the overseas property purchase
For more information on finances in your chosen country and to find out how much you can borrow, please explore the links below:
American Mortgages Australian Mortgages Bulgarian Mortgages Canada Mortgages Cape Verde MortgagesCaribbean Mortgages Cyprus Mortgages Dubai Mortgages France Mortgages Gibraltar Mortgages Greece Mortgages Italy Mortgages Malta Mortgages Monaco Mortgages New Zealand Mortgages Poland Mortgages Portugal Mortgages South African Mortgages Spain Mortgages Switzerland Mortgages Turkey Mortgages USA Mortgages
International Finances Services- about our service companies
Funding your Deposit
We can provide you with information on different methods by which you can raise the deposit for your overseas property. The choice will depend on your financial circumstances, and will be linked to your income, assets or both. You can make these arrangements using Conti or Anchor Mortgages, our own UK specialist, or through your own sources.
We can provide you with information on different methods by which you can raise the deposit for your overseas property. The choice will depend on your financial circumstances, and will be linked to your income, assets or both. You can make these arrangements using Conti or Anchor Mortgages, our own UK specialist, or through your own sources.
Legal Advisors
We have partnerships with two UK based international law firms which, between them, are represented in every one of the countries where we provide mortgage products. This ensures that your application and purchase are dealt with by lawyers entirely familiar with the legal processes in the country concerned, and that you have a tried and tested resource to guide you - who also speaks your language!
We have partnerships with two UK based international law firms which, between them, are represented in every one of the countries where we provide mortgage products. This ensures that your application and purchase are dealt with by lawyers entirely familiar with the legal processes in the country concerned, and that you have a tried and tested resource to guide you - who also speaks your language!
Insurance Services
Buildings insurance for the building you are purchasing will normally be a requirement of any mortgage offer. We can direct you to intermediaries who specialise in providing insurance for both Buildings and Contents in all the countries in which we operate. The policy will be provided in the UK, written in English, and by an insurer regulated in the UK by the Financial Services Authority.
Buildings insurance for the building you are purchasing will normally be a requirement of any mortgage offer. We can direct you to intermediaries who specialise in providing insurance for both Buildings and Contents in all the countries in which we operate. The policy will be provided in the UK, written in English, and by an insurer regulated in the UK by the Financial Services Authority.
Currency Exchange
Part of the mortgage process may involve setting up a bank account in the country where you are purchasing, and it will be in your interests to obtain the best possible exchange rates into the local currency. We have a facility with one of the biggest Currency Exchange companies in the UK to assist you with this.
Part of the mortgage process may involve setting up a bank account in the country where you are purchasing, and it will be in your interests to obtain the best possible exchange rates into the local currency. We have a facility with one of the biggest Currency Exchange companies in the UK to assist you with this.
For more information on finances in your chosen country and to find out how much you can borrow, please explore the links below:
American Mortgages Australian Mortgages Bulgarian Mortgages Canada Mortgages Cape Verde MortgagesCaribbean Mortgages Cyprus Mortgages Dubai Mortgages France Mortgages Gibraltar Mortgages Greece Mortgages Italy Mortgages Malta Mortgages Monaco Mortgages New Zealand Mortgages Poland Mortgages Portugal Mortgages South African Mortgages Spain Mortgages Switzerland Mortgages Turkey Mortgages USA Mortgages
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: home loans, Loan calculator, loans, mortgage calculator
# posted by Dr Search- Principal Consultant at the Search Clinic @ 7:15 PM 0 comments
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Friday, August 28, 2009
Adverse credit loans remortgage and refinance
Adverse credit loans has become one of the most common problems that people are facing these days. On top of that if you have a mortgage that is costing you a lot then you can go in for a remortgage that can help you reduce the costs.
Now comes the question that you are suffering from bad credit and how can you qualify for a remortgage loan. Well, the lenders have especially come up with remortgage loans for people with credit problems so that it can reduce the burden and help pay off the mortgage easily.
UK Loans Calculators for a fast online application, decision and payout ADVERSE CREDIT LOANS please click here now
For UK mortgage holders looking for a fast online mortgage calculator ADVERSE CREDIT LOANS please click here now
A remortgage is basically a replacement loan for your mortgage at a lower interest rate. When you take a remortgage loan your mortgage is paid off and a new loan payment towards the remortgage starts. If you have adverse credit the lender would definitely see you as a risk and offer you a remortgage loan at a higher interest rate than those made available to people with good credit.
Rates offered on adverse credit remortgage
When you take a remortgage loan with adverse credit you are offered different types of interest rate. Keeping your financial situation in mind the lender offers you the following types so that you can choose easily from whichever one you think would be the best suitable for you.
Fixed rates: This keeps your interest rate same throughout the mortgage and helps you to preplan your budget. But with this option you cannot enjoy any drop in the interest rates in the future. Variable rates: This is also offered as the standard variable rate and fluctuates with the change in the national rates. This means that your interest rates would not be fixed throughout the loan term and would change every month.
Capped rates: This rate means that your monthly payments would not exceed a limited amount every month however, within this limit the interest rates would vary according to the variable rates.
Fixed rates: This keeps your interest rate same throughout the mortgage and helps you to preplan your budget. But with this option you cannot enjoy any drop in the interest rates in the future. Variable rates: This is also offered as the standard variable rate and fluctuates with the change in the national rates. This means that your interest rates would not be fixed throughout the loan term and would change every month.
Capped rates: This rate means that your monthly payments would not exceed a limited amount every month however, within this limit the interest rates would vary according to the variable rates.
UK Loans Calculators for a fast online application, decision and payout APPLY NOW please click here now
Why should you opt for these loans
Taking an adverse credit remortgage is one of the best ways in which you can lower your interest rates and hence your monthly payments that you were making towards the mortgage loan. You can get a big amount, as you would have to keep your house or its equity as collateral and after having paid the mortgage you can use the remaining amount for making home improvements, for debt consolidation, financing education expenses of your children etc.
With the help of these loans you can convert your variable interest into fixed rate. You can increase or decrease the term of your loan and also opt for more flexible options for the loan. However, it is important that you review your adverse credit remortgage loan before signing the agreement.
With the help of these loans you can convert your variable interest into fixed rate. You can increase or decrease the term of your loan and also opt for more flexible options for the loan. However, it is important that you review your adverse credit remortgage loan before signing the agreement.
What should you check before signing
When applying for the adverse credit remortgage loan it is important that you be wary about the interest rate that the lender is offering you. It is advised that you opt for these loans only if the interest rate is lower than the rates on your present mortgage.
Before you apply for these loans check the mortgage rates prevailing in the market and get an idea about the interest rate that would be charged for adverse credit. If you find that the interest rates are low then you can go ahead and apply for the remortgage loan. Besides this keep a track about the other fees that the lender is charging you.
Make sure that you are aware of all the costs related to the adverse credit remortgage loan. It is important that you be careful while taking these loans, as there are many lenders in the market who try and take advantage of such people. Ask about the pre-payment penalties and the rest of the charges like solicitor fees, property appraisal fee etc.
Before you apply for these loans check the mortgage rates prevailing in the market and get an idea about the interest rate that would be charged for adverse credit. If you find that the interest rates are low then you can go ahead and apply for the remortgage loan. Besides this keep a track about the other fees that the lender is charging you.
Make sure that you are aware of all the costs related to the adverse credit remortgage loan. It is important that you be careful while taking these loans, as there are many lenders in the market who try and take advantage of such people. Ask about the pre-payment penalties and the rest of the charges like solicitor fees, property appraisal fee etc.
Where to apply? Right Here!
UK Loans Calculators for a fast online application, decision and payout APPLY NOW please click here now
For UK mortgage holders looking for a fast online mortgage calculator APPLY NOW please click here now
Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.
Labels: consolidate debt loans, home loans, Loan calculator, loans, refinancing rates, sub prime loans
# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:44 AM 0 comments
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Monday, August 24, 2009
Credit cards you guide to unsecured loans in plain english
What exactly is a credit card?
How do credit cards work?
Do all credit cards offer the same service?
How do I get a credit card?
Am I obligated to accept the offer if I apply?
What if my application is rejected?
Are there any credit card traps?
How is my credit limit determined?
How am I judged when applying for a credit card?
How do I check my credit rating?
Does applying for a credit card affect my credit status?
Why do providers put so much importance on a good credit history?
I've had credit problems. Can I still qualify for a credit card?
How much do they cost?
How are interest charges calculated?
What does 'grace' or 'interest free' period mean?
How should I pay the bill?
Must I pay the full bill each month?
How can I make sure I never miss paying my bill on time?
What will happen if I can't afford to pay the outstanding balance?
What is a balance transfer?
What is Payment Protection?
What is an affinity card?
What is a secured card?
What is a guaranteed card?
What is an unsecured card?
What is a debit card?
Is a credit card the same as a charge card?
Do all cards offer travel rewards?
I thought ATM cards had PIN numbers. Why do credit cards have them?
Where can I withdraw money using my credit card?
Can I get cash on my credit card?
Why am I charged more interest when I use my credit card to get cash?
Are credit cards cheap to use when abroad?
How can I be sure that I make the right choice?
Are credit cards safe?
Is it safe to give out my credit card number when buying goods or services by phone or on the Internet?
Do I get proper consumer protection if I use a credit card?
If I have a problem with my credit card whom should I contact?
What if I lose my card?
How do I know where to find your website again?
What is a cookie?
Please just click here now for all of your credit card and unsecured loans needs credit card calculator
What exactly is a credit card?
A credit card represents a loan agreement where you are offered credit, providing you pay off a minimum amount each month. You can charge purchases up to the amount of your credit limit and pay for them later.
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How do credit cards work?
With a credit card, as long as you do not exceed your credit limit, you can spend whatever you wish, wherever your credit card is accepted. You are required to pay a minimum amount off the balance each time you receive a billing statement. The usual minimum payment is approximately 3% - 5% of the balance. You can sign for purchases or you can purchase by telephone or the Internet. There are many different card issuers, but most operate through two worldwide credit card networks - VISA and MasterCard.
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With a credit card, as long as you do not exceed your credit limit, you can spend whatever you wish, wherever your credit card is accepted. You are required to pay a minimum amount off the balance each time you receive a billing statement. The usual minimum payment is approximately 3% - 5% of the balance. You can sign for purchases or you can purchase by telephone or the Internet. There are many different card issuers, but most operate through two worldwide credit card networks - VISA and MasterCard.
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Do all credit cards offer the same service?
No, there are huge differences in the services provided by credit card issuers. For example, there are cards available to people at a set minimum income level, e.g. Gold/Platinum cards, and these may provide more benefits to the customer. With Affinity and Charity cards, a small percentage of what you spend is donated to an affiliated organisation. Reward programmes offer air miles, shopping points, cash rebates or special discounts. If you do not pay your balance, you may lose these benefits. Other features include access to cash machines, travel insurance, and special introductory rates. Purchase Protection is available in the case of loss, theft or damage to goods you purchase with your card.
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No, there are huge differences in the services provided by credit card issuers. For example, there are cards available to people at a set minimum income level, e.g. Gold/Platinum cards, and these may provide more benefits to the customer. With Affinity and Charity cards, a small percentage of what you spend is donated to an affiliated organisation. Reward programmes offer air miles, shopping points, cash rebates or special discounts. If you do not pay your balance, you may lose these benefits. Other features include access to cash machines, travel insurance, and special introductory rates. Purchase Protection is available in the case of loss, theft or damage to goods you purchase with your card.
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Through our Find the Right Card option, you can interactively search for a credit card based on the features most valuable to you. You can compare using your own personalised criteria, whether its price, brand or reward programmes.
The results of this comparison will be presented in graphical format together with the relative importance in percentage of the most valued features to you.
After comparing your most valuable features, you will be presented with a list of ten suitable credit cards. Each card is given a percentage so you can see how close each product matches your preferences. You can view the details for each of the credit cards in the list to help make a decision.
For our on-line partners, you can complete the application form for their products on this site and send it off. All aspects of your application are assessed by the product provider, and a decision is provided within 24 hours.
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The results of this comparison will be presented in graphical format together with the relative importance in percentage of the most valued features to you.
After comparing your most valuable features, you will be presented with a list of ten suitable credit cards. Each card is given a percentage so you can see how close each product matches your preferences. You can view the details for each of the credit cards in the list to help make a decision.
For our on-line partners, you can complete the application form for their products on this site and send it off. All aspects of your application are assessed by the product provider, and a decision is provided within 24 hours.
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Am I obligated to accept the offer if I apply?
If you apply and are approved for a credit card, you are under no obligation to accept the offer. An offer will be sent to your listed address and you choose to accept by returning the signed document to the product provider.
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If you apply and are approved for a credit card, you are under no obligation to accept the offer. An offer will be sent to your listed address and you choose to accept by returning the signed document to the product provider.
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What if my application is rejected?
If your application is rejected, you can ask your credit card provider to review the application. If a credit reporting agency has been used, you can ask for the agency name and address. Write to them requesting any details held on you. Remember that you can apply for more than one card - however for credit rating reasons it is not advisable to apply for more than five cards within a 6-month period.
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If your application is rejected, you can ask your credit card provider to review the application. If a credit reporting agency has been used, you can ask for the agency name and address. Write to them requesting any details held on you. Remember that you can apply for more than one card - however for credit rating reasons it is not advisable to apply for more than five cards within a 6-month period.
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Are there any credit card traps?
With credit cards it's very easy to borrow without realising how much, until you receive your monthly statement. So, try to keep track of your spending. Credit cards can be a costly form of borrowing so look out for other loans, such as personal loans, that might better suit your needs. Always keep your receipts and check them against your statement. If you do not recognise an item on your statement, contact the provider immediately. Note that if you use your card overseas, sometimes it takes longer for items to appear on your statement.
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With credit cards it's very easy to borrow without realising how much, until you receive your monthly statement. So, try to keep track of your spending. Credit cards can be a costly form of borrowing so look out for other loans, such as personal loans, that might better suit your needs. Always keep your receipts and check them against your statement. If you do not recognise an item on your statement, contact the provider immediately. Note that if you use your card overseas, sometimes it takes longer for items to appear on your statement.
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How is my credit limit determined?
Your credit limit is determined by a combination of things, including your credit history, income and amount of debt. These conditions are also used to determine what type of card you may be offered. For example, some standard cards have credit limits of up to 3,000. Gold and platinum cards may offer extended credit limits to customers with well established and very favourable credit histories. Customers without a credit history or with blemished credit histories tend to be offered secured cards or unsecured standard cards with lower credit limits. Once a cardholder's credit history is established or improved, cards with higher credit limits can be obtained.
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Your credit limit is determined by a combination of things, including your credit history, income and amount of debt. These conditions are also used to determine what type of card you may be offered. For example, some standard cards have credit limits of up to 3,000. Gold and platinum cards may offer extended credit limits to customers with well established and very favourable credit histories. Customers without a credit history or with blemished credit histories tend to be offered secured cards or unsecured standard cards with lower credit limits. Once a cardholder's credit history is established or improved, cards with higher credit limits can be obtained.
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How am I judged when applying for a credit card?
Judgement criteria can vary from one card provider to another. However, your income and your credit history are the two main criteria. Many card providers rely on data from credit reporting agencies.
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Judgement criteria can vary from one card provider to another. However, your income and your credit history are the two main criteria. Many card providers rely on data from credit reporting agencies.
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