October, 2008 news
Lender cuts fixed-rate mortgage rates
A major UK lender has revealed it has cut the interest it charges on some of its mortgages.... Read more »
Mortgages: repossessions 'broadly in line with CML expectations'
11,054 homes were repossessed in the second quarter of 2008, an increase of about 20% from the previous quarter, the Financial Services Authority (FSA) has announced.... Read more »
£4 billion of loans for small businesses
The European Investment Bank (EIB) will lend £4 billion to small UK businesses which are finding it difficult to borrow from normal loan providers, the British Treasury has announced.... Read more »
Chancellor 'demands cheaper petrol'
Chancellor of the Exchequer Alistair Darling has called on oil firms to cut petrol prices as soon as possible, following the announcement of two firms' third-quarter profits.... Read more »
Inflation expected to fall to 2.9%
Annual inflation is expected to fall to 2.9 percent over the next 12 months, according to a YouGov/Citigroup survey.... Read more »
House prices 'fell 7.3% in a year'
New figures claim that English and Welsh house prices fell by 7.3% in the year to October, taking prices down to their lowest since March 2006.... Read more »
More calls for interest rate cut
Pressure has grown on the Bank of England to make further base rate cuts, following a stock market slide and continuing economic uncertainty in the past week.... Read more »
Britain 'may need 0% interest rate'
A leading economist has said that the Bank of England may need to drop its base rate to 0% in order to avoid an economic depression.... Read more »
2 million to face negative equity by 2010?
By 2010, two million households could be in negative equity, reports The Times.... Read more »
Bank of England 'calls for reform of global banking system'
The Bank of England has called for fundamental reform of the global banking system, to avoid a repeat of the troubles we've seen in recent months.... Read more »
Debt causing stress among consumers, report says
A new report has found that increasing numbers of Britons are seeking medical help as a result of stress they are experiencing due to debt.... Read more »
10% rise in mortgage approvals
The number of mortgage approvals was up 10% last month - but down almost 57% on last September's figures.... Read more »
Loans for small businesses
The Government has announced a 'package of further support' to help small and medium-sized enterprises (SMEs) cope with today's economic problems.... Read more »
Consumers `unprepared for recession`
The majority of consumers in Britain are not prepared for recession, it has been claimed.... Read more »
Petrol prices to rise?
OPEC (the Organization of the Petroleum Exporting Countries) has agreed to cut its oil production in a bid to keep oil prices from dropping.... Read more »
Hope for mortgages as LIBOR falls further
In a potential boost to the mortgage and loan markets, Wednesday saw the cost of interbank lending fall further as banks displayed increased confidence in market conditions. ... Read more »
4% base rate cut 'important'
A further half-point base rate cut to 4% would be an "important step" towards achieving and maintaining economic stability, a leading body has said.... Read more »
Retail sales growth 'slowest in 2 1/2 years'
New figures released by the Office for National Statistics (ONS) show that retail sales are growing at their slowest annual rate in two-and-a-half years.... Read more »
Bank says repossession is "last resort"
Abbey has said that in instances when its customers enter into arrears with their mortgages, it views repossession of their homes as a "last resort".... Read more »
Council of Mortgage Lenders: repossession already the last resort
Mortgage providers are already required to seek possession only as a last resort, the Council of Mortgage Lenders (CML) reminded people yesterday.... Read more »
More interest rate cuts: good news for loans?
Many experts - such as Nationwide Building Society - expect interest rates to drop further in the near future.... Read more »
IMF: a tough year ahead
A gradual recovery in Europe isn't expected until sometime towards the end of 2009, says the International Monetary Fund (IMF).... Read more »
Lender cuts mortgage rates
A major UK lender has announced it is cutting the rate it charges on its three-year fixed-rate mortgage product.... Read more »
Mortgage lending continues to fall
Mortgage lending continued to fall last month, new figures reveal, as the credit crunch continued to limit access to mortgages, and would-be buyers put their plans on hold.... Read more »
Unsecured personal loan rates 'increasing'
Unsecured personal loan rates saw sharp rises between September and October, new research has revealed, as the credit crunch continued to put pressure on lenders and borrowers alike.... Read more »
Higher loan rate needed to boost property market, expert says
A return of higher loan to value mortgages is required in order to kick start the UK`s property market.... Read more »
Annual energy bills 'could be cut by a third or more'
Annual energy bills could be cut by a third or more if energy companies entered into "more vigorous competition", according to a former Energywatch chief executive.... Read more »
Food price rises 'slowing down'
Food price inflation has started to slow, a new survey for the BBC has shown, following the steep rises that have piled financial pressure on British consumers throughout 2008.... Read more »
Many mortgage providers 'failing to pass on base rate cut'
The Bank of England's half-point base rate cut has not had its full intended impact, as only four building societies have passed the cuts on to customers on their variable-rate mortgage products, The Times reports.... Read more »
Nationwide cuts mortgage rates
Britain's third-biggest mortgage provider, Nationwide Building Society, has announced it will cut its Standard Variable Rate (SVR) to 6.19 per cent.... Read more »
CML: Over 98% of borrowers pay mortgages in full, on time
The Council of Mortgage Lenders foresees no increase in the number of repossessions to take place this year - a number it still estimates at 45,000.... Read more »
Petrol prices below 98p
Asda and Morrisons have both reduced the cost of petrol on their forecourts, bringing the cost of unleaded petrol down to 97.9p.... Read more »
UK 'already in recession'
The UK's economy has deteriorated over the past three months and is already in a recession, according to experts.... Read more »
Brits `issue loans to loved ones`
A significant number of consumers in the UK are issuing loans to their family members.... Read more »
Banks told home repossessions should be "a last resort"
UK treasury minister Yvette Cooper has suggested that banks and other mortgage lenders should not repossess houses unless they have explored all the other options first.... Read more »
Loans 'still not at normal levels'
Banks' continued reluctance to lend to each other has seriously restricted the level at which personal loans, mortgages and other forms of credit can be offered, according to the BBC's business editor Robert Peston.... Read more »
Tracker mortgages 'more expensive despite base rate cut'
The Bank of England's base rate cuts have been negated by rapid rises in the price of tracker mortgages over the past year, research shows.... Read more »
Mortgage market impacts on new-build market
The issues in the mortgage market are threatening the Government's housing target of building two million new homes by 2016.... Read more »
Interest rates 'could be as low as 1%'
Leading economists have said that the Bank of England may need to cut the base rate to 2% or even as low as 1% "within months", as it aims to protect the economy from a serious economic crisis, according to The Telegraph.... Read more »
Oil prices down to $72
The price of US light, sweet crude oil reached $72.10 per barrel today, less than half the $147 peak seen in July this year.... Read more »
Above-inflation rail fare rises could push people into debt
With inflation at 5.2%, rail passengers should nonetheless expect above-inflation fare rises, says a report from a Government spending watchdog.... Read more »
Women 'not saving enough' for retirement
Women are still not saving enough for retirement, according to an official pensions and investment provider.... Read more »
Housing slump 'could be over next year'
The housing slump could come to an end as early as next year if the cost of home loans were to fall by another half-point, a leading economist has said.... Read more »
Elderly people`s finances `hit hard by inflation`
The personal finances of retirees in the UK are being hit harder by inflation than those of their worker counterparts, it has been suggested.... Read more »
5 million loan and credit card applications rejected in six months
Almost 5 million applications for credit cards and personal loans have been rejected by lenders in the past six months, a new survey suggests.... Read more »
Mortgage lending declines further in August
The number of house purchase loans made in August was the lowest since the Council of Mortgage Lenders began collecting monthly data in January 2002.... Read more »
House sales slowest for 30 years
The slump in house sales is worsening, with estate agents selling less than one property per week on average in September, according to a new survey by RICS (the Royal Institute of Chartered Surveyors).... Read more »
Mortgage lending slides again in August
The amount of money borrowed for home loans declined further in August, it has been revealed.... Read more »
Govt `must help pensioners with personal finances`
The government must step in to help pensioners struggling with their personal finances in the light of rising inflation, a charity has said.... Read more »
Energy watchdog threatens action against suppliers
Energy watchdog Ofgem has warned energy suppliers that they may have to cut prices and pay compensation to millions of customers who have not paid by direct debit or do not benefit from 'dual fuel' price plans.... Read more »
Mortgage experts say rates may drop further
A number of mortgage experts have said that interest rates may drop further in the next few months, as continuing economic turmoil may lead the Bank of England to make more base rate cuts.... Read more »
Government scheme ensures availability of loans
The government's ongoing efforts to resolve the banking crisis come with 'strings attached', the Prime Minister has insisted - in return, loan providers are making some important commitments.... Read more »
Five million households in fuel poverty
Around five million households are facing fuel poverty, says energy watchdog Consumer Focus. What's more, the figure has risen sharply in recent years. ... Read more »
MPC member hints at further rate cuts
A member of the Bank of England's Monetary Policy Committee (MPC) has hinted there may be further cuts to the base rate.... Read more »
Retail sales fall in September
UK retail sales in September were down 1.5% from last year's levels, reports the British Retail Consortium (BRC).... Read more »
Base rate cuts `will not improve mortgage market`
Consumers hoping for improvements in the mortgage market as a result of the recent fall in the base rate of interest may be disappointed. ... Read more »
Pensioners` personal finances `hit by stock market crashes`
The personal finances of UK pensioners may be affected by the recent stock market crashes, it has been suggested.... Read more »
Northern Rock mortgage customers `will not get full interest rate cut`
Mortgage holders with Northern Rock will not feel the full benefit of the recently-announced interest rate cut.... Read more »
Consumer confidence hit further as debt worries grow
Consumer confidence in September fell to its lowest levels in at least four years, as the threat of an economic downturn becomes an ever more realistic possibility, a survey has shown.... Read more »
Government 'bank bailout' should help mortgage market
The new 'bank bailout', announced last week, should provide some much-needed support to the UK mortgage market, experts claim.... Read more »
£50bn 'bailout' expected to reinvigorate loans market
The Government's new £50 billion 'bank bailout' aims to stabilise the UK banking industry and kick-start lending.... Read more »
Mortgage rates cut following base rate drop
Many mortgage holders reaped immediate benefits on Wednesday as the Bank of England decided on a half-point drop in the base rate to help rejuvenate the weakening economy.... Read more »
Base rate cut: good news for loans
The base rate was cut to 4.5% last week in a special meeting of the Bank of England's Monetary Policy Committee (MPC) - a move which will help many people with mortgages, loans and other forms of credit.... Read more »
Annual shop price inflation falls for the first time in six months
Annual shop price inflation has fallen for the first time since March, says the British Retail Consortium (BRC).... Read more »
Base rate down to 4.5%
Last week (8th October), the Bank of England's Monetary Policy Committee (MPC) voted to reduce the UK's base rate from 5% to 4.5% - the largest cut since November 2001.... Read more »
Interbank loan rate keeps pressure on lenders
The Bank of England's half-point base rate cut failed to remove all the pressure on lenders, despite several lenders dropping mortgage rates, it has emerged.... Read more »
Food and fuel prices down
Fuel prices fell this week and supermarkets prepared a new round of price cuts, easing the pressure on personal finances across the country, the Times reports.... Read more »
House prices: 'smallest monthly fall for seven months'
While house prices fell in September, the fall was the smallest in seven months, according to the Halifax.... Read more »
`More people in mortgage and fuel arrears`
An increasing number of consumers in the UK are having problems with mortgage and fuel payment arrears, it has been suggested.... Read more »
`Over a third of borrowers will benefit from rate cut`
The recent cut in the UK`s base rate of interest is particularly good news for the 36 per cent of mortgage holders with tracker products.... Read more »
Consumers` finances `under pressure`
Consumers are having to cut back on their spending in order to stay afloat financially amid worsening economic conditions, new research suggests.... Read more »
US financial 'bailout' approved
Passed by the US House of Representatives on the second attempt, the US 'bailout' legislation was signed into law by the President on October 3rd.... Read more »
Falling oil prices offer some hope
The price of oil has dropped to an eight-month low, below $90 a barrel, according to the BBC, which states that 'London Brent crude fell $6.57 to $83.68'.... Read more »
Bank accounts - individuals' savings protected
As of today, 7th October 2008, the first £50,000 of an individual's savings will be protected, even if the bank becomes insolvent.... Read more »
Low-deposit mortgages: 'only 60 left'
The number of mortgages available to buyers with a 5% deposit has significantly reduced in recent months, as the credit crunch continues to limit mortgage and loan availability, according to the BBC.... Read more »
Bank bailout 'will not aid all of mortgage market'
Experts believe that the new £50bn British bank bailout may not help first-time buyers, as lenders look to fill their balance sheets with "lower-risk" customers, it has emerged.... Read more »
`Not surprising` loans are becoming more expensive
Given the fact that the credit crunch was precipitated by bad debt, it is not surprising that cheap credit is drying up, it has been suggested.... Read more »
BoE makes emergency interest rate cut
In news which may be welcomed by people paying back mortgages and other loans, the Bank of England (BoE) cut interest rates yesterday as part of a coordinated international strategy.... Read more »
Bank of England makes loans more available
The Bank of England (BoE) will accept more kinds of collateral from financial institutions in return for loans, it has announced.... Read more »
Watchdog calls for fair energy bills
Ofgem, the energy regulator, has instructed energy companies to stop charging customers more because they pay by pre-payment meters rather than direct debit.... Read more »
Failing to plan for retirement `will cause financial problems`
People could be leaving themselves vulnerable to personal finance problems - potentially including debt - by failing to plan for retirement, an expert has said.... Read more »
Fewer homeowners withdrawing equity
The uncertainty surrounding the housing and mortgage markets has meant that fewer homeowners are relying on equity tied up in the value of their homes as a source of funds, recent figures have shown.... Read more »
Loan rates on the rise, figures suggest
The amount charged by a number of major UK loan providers has increased significantly in recent weeks.... Read more »
Interest rates `could fall to 3.25% in 2009`
The base rate of interest in the UK could fall to as low as 3.25 per cent in 2009, an expert has said.... Read more »
Scottish retirement debt `on the rise`
Retirees in Scotland are subject to greater levels of debt than they were four years ago, it has been suggested.... Read more »
Pensioners advised to remortgage equity release deals
Pensioners in the UK who have released equity from their homes over the last five years or more may be missing out if they fail to seek more competitive deals, it has been suggested.... Read more »
Tesco and Virgin to offer mortgages?
Supermarket giant Tesco and Richard Branson`s Virgin Group are both looking to move into the mortgage market, it has been revealed.... Read more »
Third of pensioners `left facing mortgage debt`
One in three UK pensioners is left with a mortgage debt after giving up work, it has been revealed.... Read more »
`Opinion divided` over interest rate decision
There is no consensus of opinion as to what the Bank of England`s monetary policy committee will do when it meets to decide what the UK base rate of interest will be on Thursday (Oct 9th).... Read more »
Availability of loans shrinks in three months to September
The availability of loans and other types of credit has shrunk in the third quarter of 2008, according to the Bank of England (BoE).... Read more »
US Senate passes bill addressing mortgage debt
A revised 'financial bail-out', passed by the US Senate, still has to be approved by the House of Representatives, which rejected a similar bill on Monday.... Read more »
House prices fall in September
The price of a typical house fell by 1.7% in September, to £161,797, according to Nationwide Building Society.... Read more »
Availability of secured loans declines
Consumers seeking secured loans may not welcome figures published by the Bank of England (BoE), which reveal that the availability of credit for such loans has tightened.... Read more »
US Congress under pressure to act on 'toxic debt'
The pressure on the US Congress has been raised even further by a warning from the International Monetary Fund (IMF), the Guardian reports.... Read more »
FTBs `should be prepared to make sacrifices to secure a mortgage`
First-time buyers (FTBs) who are serious about getting on to the property ladder must be prepared to make sacrifices in order to secure a home loan, an expert has said.... Read more »
Buy-to-let mortgage market not dead, industry body says
The UK`s buy-to-let mortgage market is not dead, despite rumours to the contrary, an industry body has said.... Read more »
Lending down in August
The increase in total net lending to individuals was much lower in August than in July, Bank of England figures reveal. ... Read more »
Lending growth slows in August, BoE reveals
The 12-month growth rate in lending to individuals in the UK slowed again in August, the Bank of England (BoE) has revealed.... Read more »
Parents `should save to avoid debt problems for children`
In order to prevent their children from experiencing debt problems early in their lives, parents should begin saving for them on a regular basis.... Read more »
Brits `unaware of mortgage details`
Despite the personal finance concerns facing people as a result of the ongoing credit crunch, many UK consumers lack an awareness of the details of their home loans, it has been suggested.... Read more »