December, 2008 news
Homeowners advised to overpay on mortgages
As interest rates fall in the UK, homeowners have been advised by one expert to overpay on their home loans.... Read more »
Single people `risking finance problems due to lack of cover`
A significant number of single people in the UK are risking future personal finance problems, including debt, by failing to secure income protection insurance, it has been suggested.... Read more »
Equity release market rises by 141% in Scotland
An increasing number of Scottish consumers, potentially including those experiencing debt problems, are choosing to release equity from their properties in a bid to free up cash.... Read more »
Consumers `using credit as they would cash`
A significant number of UK consumers use credit cards for everyday purchases in the same way as a debit card or cash.... Read more »
Proportion of prime mortgages in arrears `rises`
The number of homeowners with prime mortgages who are experiencing difficulties keeping up their loan repayments is on the rise.... Read more »
Mortgage approvals fall to record low
Mortgage lending from major banks has continued to fall, with November's levels of house purchases 60% lower than November 2007. ... Read more »
EC approve changes to bank bail-out plan
The European Commission have approved changes to the Government's £500bn bank bail-out scheme, as the economic crisis continues to threaten the banking industry. ... Read more »
Oil price stays below $40
Oil prices have remained below $40 per barrel in the run-up to Christmas, as low demand continues to stifle the market. ... Read more »
Tracker mortgage consumers `to save £9bn over next year`
People with tracker mortgages will be better off by a combined total of £9 billion by next Christmas as a result of the recent falls in interest rates, new figures suggest.... Read more »
Elderly `taking debts against homes to fund care`
In the face of the current economic downturn, increasing numbers of elderly people in Britain are having to secure debts against their homes in order to fund care.... Read more »
Treasury announces details of Mortgage Support Scheme
Details of the Mortgage Support Scheme have been released by the government. ... Read more »
Fixed rates cut by UK bank
A UK lender has revealed that it has cut the rates on its fixed-rate mortgages in response to last week`s interest rate fall of 100 basis points.... Read more »
Mortgage lending: latest figures
Gross mortgage lending fell in November, according to the Council of Mortgage Lenders (CML). ... Read more »
Student loan interest rate falls
Interest rates on student loans have been cut from 3.8% to 3%, due to a clause in the contract stating that the rate cannot rise more than 1% above the base rate. ... Read more »
'Debt-laden shoppers' cut back on spending
Amid 'rising unemployment, sliding house prices and fears of a deep recession', debt-laden shoppers are cutting back on spending, Reuters reports. ... Read more »
500,000 to face mortgage arrears in 2009, says CML
The UK mortgage market faces a "very tough year" in 2009 with the number of households whose mortgages are more than three months in arrears set to hit 500,000 by next December, the Council of Mortgage Lenders (CML) has said. ... Read more »
Bank reveals it is to increase mortgage lending
International bank HSBC has announced that it is to significantly increase the amount of money it lends in the form of mortgages next year.... Read more »
Lender announces changes to mortgage range
A UK lender has revealed that it has made changes to its range of mortgages.... Read more »
House prices 'won't recover for a decade'
House prices will continue to fall next year followed by several years of stagnation, an expert has predicted. ... Read more »
Car giant reports first ever yearly losses
Carmaker Toyota has announced its first yearly loss in over 70 years, as the car industry continues to feel the effects of the credit crunch. ... Read more »
Drivers and energy users to face higher prices in 2009
The price of fuel for transport and domestic energy could rise in early 2009, as oil cartel OPEC announced it would cut production by around two million barrels per day in an attempt to revive flagging oil prices. ... Read more »
95% mortgages on offer again
95% mortgages are back on the market: Nationwide Building Society has become the first mortgage provider to offer mortgages to people with a mere 5% deposit. ... Read more »
'Resolving debt problems' should be a Christmas priority
'Facing up to and resolving debt problems' should be seen as more important than buying presents, says R3, the Association of Business Recovery Professionals. ... Read more »
Two million homeowners 'considering mortgage holiday'
A new survey has suggested that two million British homeowners are considering taking a mortgage payment holiday to help fight off the effects of the recession.... Read more »
Bank of England considered bigger base rate cut
Minutes from the latest Monetary Policy Committee (MPC) meeting have shown that the Bank of England considered a larger base rate cut before settling on a 2% rate.... Read more »
Mortgage debt to affect 500,000
The Council of Mortgage Lenders (CML) has predicted that the number of households falling more than three months behind on their home loan repayments would reach 500,000 next year - more than double 2008's expected figure of 210,000.... Read more »
Cost of loans could fall
The cost and availability of loans could be set to improve following changes to the Government's credit guarantee scheme.... Read more »
Inflation falls to 4.1%
The official CPI (Consumer Price Index) rate of inflation fell to 4.1% in November, down from 4.5% in the previous month.... Read more »
Mortgage figures from the Council of Mortgage Lenders
In yesterday's issue of its 'news & views' newsletter, the Council of Mortgage Lenders provides an informative summary of today's mortgage market.... Read more »
BoE should exercise 'aggressive' policies to help loans markets
The Bank of England should exercise 'aggressive' policies to fight the credit crunch and improve the availability and cost of loans, according to a former member of the Bank's Monetary Policy Committee (MPC).... Read more »
Credit card debt from last Christmas still with us
One in ten adults are still carrying credit card debt from last Christmas, The Telegraph reports.... Read more »
Mortgage news: 'halfway through the house price slump'
Ongoing troubles in the mortgage market are likely to contribute to a further 10-15% drop in house prices this year, according to experts in the mortgage market.... Read more »
Treasury plans to encourage cheaper loans
Treasury officials are looking at ways of encouraging lenders to provide more - and cheaper - loans.... Read more »
Bank of England: more households finding debt a burden
More households are now finding their debt to be a burden, the Bank of England's Quarterly Bulletin for Q4 2008 reports.... Read more »
Prime mortgage holders 'struggling with payments'
New figures from Standard and Poor's have suggested that increasing numbers of 'prime' mortgage holders were struggling to meet payments in the third quarter of this year.... Read more »
Life insurance - half the price it used to be
The cost of term insurance has plummeted in the last decade, with premiums dropping by up to 53%. ... Read more »
27 million 'could pay less for loans'
Millions of British borrowers with personal loans and credit cards could save money just by asking their lender for a lower interest rate, it has been claimed.... Read more »
Agreement on credit card debt reached
Credit card companies have agreed on a set of 'fair principles' to help consumers struggling with credit card debt.... Read more »
Tracker mortgage holders '£9bn better off next year'
New research has suggested that homeowners with tracker mortgages could collectively be up to £9 billion better off by next Christmas.... Read more »
Personal loan rates 'still increasing'
Interest rates on personal loans are continuing to rise, despite recent cuts to the base rate, The Times reports.... Read more »
11.6 million 'struggling financially'
A quarter of the adult population - over 11 million people - are in financial trouble, according to a new survey carried out for insurance company Axa.... Read more »
Homeowner Mortgage Support Scheme: the criteria
The Homeowner Mortgage Support Scheme, which could let households defer some of the interest payments on their mortgage by up to two years, will not help everyone having problems paying their mortgage.... Read more »
Loan news: 0% base rate a possibility
As the economy deteriorates, many economists expect interest rates to hit 1% or even 0% before long. For people looking for a loan, this might be good news. ... Read more »
Britons focus on paying off debt
Paying off debt has become a much higher priority, as worried consumers adjust to the nation's economic problems.... Read more »
First-time buyer mortgage offers rise
New figures from the Council of Mortgage Lenders show a rise in the number of mortgages offered to first-time buyers in October.... Read more »
Homeowner Mortgage Support Scheme
In the face of rising unemployment, the Government has announced the 'Homeowner Mortgage Support Scheme' to give homeowners in financial trouble some breathing space.... Read more »
Home loans up in October
October saw more house purchase loans approved than September, in terms of both volume and value.... Read more »
Debt levels high; confidence levels low
The latest figures from Nationwide show that consumer confidence fell in November.... Read more »
Banks respond to rate cut with new home loans
In response to the recent fall in the UK`s base rate of interest, Lloyds TSB and Cheltenham & Gloucester (C&G) have revealed they are launching new tracker rates for consumers seeking mortgages.... Read more »
Repossession measures `a positive move`
The government`s measures to assist people who are at risk of losing their home because they are struggling with their mortgage repayments is a "big step in the right direction", an expert has said.... Read more »
Remortgagers `hit by effect of repossessions`
Homeowners trying to get a good deal when they remortgage their property, as well as those looking to sell, are being adversely affected by the impact of repossessions.... Read more »
Banks `still cautious about lending`
UK banks are still cautious about extending loans and credit to consumers and firms, an expert has said.... Read more »
HSBC to increase mortgage lending
HSBC will raise its mortgage lending by 20% in 2009, in a move that could restore some confidence in the struggling mortgage market.... Read more »
Government considers action for cheaper loans
Prime Minister Gordon Brown has said he will be talking to banks in order to persuade them to cut interest rates on loans, Reuters reports.... Read more »
Shoppers turn to net to avoid debt
Today (Monday) should be the biggest day of the year for online shopping, according to an expert, as consumers look to the internet to minimise their festive debt.... Read more »
Loans: Bank of England base rate cut to 2%
The Bank of England has lowered its base rate to 2%, its lowest in over half a century, in a move that will raise hopes of cuts in mortgage and personal loan rates.... Read more »
Mortgages: house prices continue to fall
New figures from Halifax show that house prices fell by 2.6% in November, increasing the overall annual fall to 14.9%.... Read more »
Car sales fall for seventh consecutive month
New car registrations fell by 36.8% in November, according to the Society of Motor Manufacturers and Traders (SMMT).... Read more »
Base rate cut brings down mortgage costs
Yesterday's base rate cut is already making itself felt, as major lenders announce their intention to reduce the cost of their SVR (Standard Variable Rate) mortgages.... Read more »
Lenders changing their loans policies
Loan providers are changing the way they price their loans, as they adapt to changes in the loans market.... Read more »
30% of adults concerned about ability to manage debt
Almost a third of adult Britons are concerned about their ability to manage debt, MoneyExpert has stated.... Read more »
Lenders may struggle to pass on rate cut, CML says
Despite this month`s cut in the base rate of interest, mortgage lenders may struggle to lower the rate they charge consumers, an industry body has said.... Read more »
Lenders lower rates in wake of BoE`s announcement
A number of major lenders have revealed that they are cutting the interest rates on some of their mortgage products in the wake of the Bank of England`s (BoE`s) decision to cut the base rate.... Read more »
1.99% mortgages on offer
Mortgage providers are offering some people fixed-rate mortgages with exceptionally low rates - as low as 1.99%.... Read more »
Avoiding future debt: teaching teenagers to budget
Parents are raising their teenage children's pocket money, according to research by NatWest Adapt - but that extra money comes with 'strings' designed to help them stay out of debt in their adult lives.... Read more »
Bank of England base rate cut to 2%
The Bank of England today lowered its base rate to 2% - the lowest rate in over half a century.... Read more »
Interest-only mortgages fall in popularity, figures suggest
The number of consumers opting for interest-only mortgages has fallen, according to new research.... Read more »
Mortgage lending continues to fall
The number of mortgage approvals in the UK last month fell to just 32,000 in October, new Bank of England figures show.... Read more »
Economists predicting further 1% base rate cut
Ahead of the official Monetary Policy Committee meetings on Wednesday and Thursday, economists are predicting a further 1% base rate cut this week.... Read more »
Online shopping to rise 10%
New research suggests that total online spending this year will be 10% higher than last year's levels, despite the current uncertainty in the economy.... Read more »
1% base rate cut most likely
When the Bank of England's Monetary Policy Committee (MPC) announces its base rate decision tomorrow, anyone looking for a loan or mortgage will probably be watching.... Read more »
Lender announces reduction in fixed-rate mortgages
A major UK lender has revealed that it has reduced the interest repayments on its fixed-rate mortgages.... Read more »
Mortgage lending dropped last month, figures show
October saw fewer mortgages approved than September, figures produced by the Bank of England (BoE) suggest.... Read more »
Mortgage arrears: RBS offers 6-month grace period
The Royal Bank of Scotland (RBS) has promised to give at least six months' 'breathing space' to homeowners who have fallen behind on their mortgage payments.... Read more »
Banks extending loans
Banks are extending loans to homeowners and small businesses, The Times reports.... Read more »
Repaying debt: number-one priority for 2009
Repaying debts has become the new number-one priority, according to a survey by PricewaterhouseCoopers (PwC).... Read more »
Building society mortgage lending `remains low`
The amount of money lent to consumers in the form of mortgages from building societies remained low in October, new figures indicate.... Read more »
Falling LIBOR could help reduce mortgage costs
Three-month LIBOR - the rate at which banks lend to each other, and a benchmark used for pricing mortgages - this week fell to 3.94%. It's the first time since December 2003, The Telegraph reports, that it has dropped below 4%.... Read more »
Personal loan rates rise despite base rate cut
New research shows that average interest rates on 'best-buy' personal loans have risen by almost half a per cent in the past two months, despite a 2% drop in the base rate in the same period.... Read more »
Debt: cost of running a household rises to £459 per week
The Family Spending Survey shows that the weekly cost of running a household for the average family rose from £406.20 to £459.20 - 13% - in just five years.... Read more »
Banks commit to six-month grace period for mortgage arrears
Two major UK lenders have committed to a six-month grace period for customers who fall into arrears over their home loan repayments.... Read more »
Mortgage lenders asked to review repossessions strategy
UK mortgage lenders have been asked to review the way in which they deal with customers who fall into arrears with their mortgage repayments due to personal finance problems.... Read more »