January, 2009 news
Woolwich offers its lowest-ever fixed-rate mortgage
Mortgage lender Woolwich has launched a new mortgage with a fixed rate of 2.29%, in a move that could spark increased competition in the market.... Read more »
Limited home loan availability contributes to house price fall
New figures have shown that the average price of a property in the UK is now 16.6% lower than this time last year.... Read more »
Education 'key' to combating debt problems
A new study has suggested that financial education could play a key part in combating rising debt and insolvency levels in the UK.... Read more »
High inflation `may cause debt problems among the elderly`
Elderly people in the UK are experiencing a significantly higher rate of inflation that their younger counterparts, it has been suggested.... Read more »
Increasing availability of loans is "key issue"
Boosting bank lending in the UK is a "key issue" at the moment and any measure taken to that end is going to help the country`s current economic situation, according to one expert.... Read more »
LTVs `preventing people from getting mortgages`
First-time buyers are being prevented from entering the property market and securing a mortgage due to the loan-to-values (LTV) being demanded by banks.... Read more »
Consumers `risking debt by failing to check energy bills`
Consumers in Britain are risking debt by failing to check the details of their energy bills.... Read more »
FSA data reveals rise in outstanding loans
New figures published by the Financial Services Authority (FSA) suggest that there was an increase in the value of outstanding loans in the third quarter of last year.... Read more »
Unemployment `leading to missed mortgage payments`
An increasing number of UK consumers are missing mortgage payments as a result of unemployment, it has been suggested.... Read more »
Cost of raising children `causing some to risk debt`
A significant number of UK parents may be risking debt as a result of the cost of bringing up children, new research indicates.... Read more »
AMI calls for "concerted action" to save mortgage market
An industry body has called for "concerted action" to save the UK`s mortgage market.... Read more »
Mortgage predictions
Rising unemployment and limited mortgage availability for new buyers are expected to drive house prices down to around two-thirds of their peak in 2007, according to a recent poll of UK analysts.... Read more »
Car loans hard to find
In the last six months, around 300,000 people have been refused a car loan.... Read more »
Christmas debt to linger
Last November, a poll by Sainsbury's Finance revealed that almost half of the people questioned expected to take more than a month to pay off their Christmas debt.... Read more »
Mortgage approvals up in December
Figures from the British Bankers' Association (BBA) have shown that the number of mortgage approvals rose in December.... Read more »
Barclays CEO confident of loans boost
Barclays CEO John Varley has said that he is confident the Government's latest bank bailout package will succeed in increasing the amount of loans offered by lenders.... Read more »
Insurance company reports falling sales
Insurance group Friends Provident has reported a significant fall in sales over the past year, as a result of the problems in the economy and the financial markets.... Read more »
Price of fixed-rate mortgages drops
Various mortgage providers have recently reduced the cost of their fixed-rate mortgages.... Read more »
Govt set to announce loans for car industry
This Wednesday, Business Secretary Peter Mandelson may announce new Government loans to help the car industry - although this is by no means definite.... Read more »
'Dangers of debt' and the need to save
Falling interest rates are reducing the appeal of saving, according to new research from the ABI (Association of British Insurers).... Read more »
Base rate: all-time low of 1.5% 'not the bottom'
Currently 1.5%, the Bank of England's base rate has reached an all-time low - but is likely to sink further yet, experts believe.... Read more »
Debt consolidation loans: £3 billion by Easter
The first three months of 2009 could see 250,000 debt consolidation loans taken out, with a total value of almost £2.93 billion, it has been has estimated.... Read more »
Mortgages: One house repossessed every 10 minutes
New figures have shown that one house was repossessed every 10 minutes in the third quarter of 2008, as increasing numbers of homeowners struggled with mortgage arrears.... Read more »
UK officially in recession
Statistics released by the Office for National Statistics (ONS) today confirmed that the UK is in a recession for the first time since 1991.... Read more »
Mortgage overpayments rising
Many thousands of mortgage holders have taken advantage of the falling base rate to overpay their mortgages, the Press Association reports.... Read more »
'Loans freeze' partly due to overseas banks
Overseas banks have had a part to play in the 'loans freeze' troubling businesses in the UK, according to the UK Government and debt market officials.... Read more »
Possibility some mortgages may pay interest, expert says
The latest interest rate fall has raised the possibility that some mortgage lenders may soon have to start paying interest to a number of their customers.... Read more »
New scheme to help lenders provide loans
Gordon Brown and Alistair Darling have announced a series of new measures which aim to help banks and other financial institutions provide loans and other forms of credit to families and businesses.... Read more »
Inflation drops to 3.1%
CPI annual inflation fell to 3.1% in December, a drop of a full percentage point from November's figure.... Read more »
Near-unanimous vote for January base rate cut
Minutes from the latest Monetary Policy Committee meeting have shown that the Committee members voted 8-1 in favour of the recent 0.5% base rate cut.... Read more »
Loans: interest on personal debt 'nearly £100bn'
Annual interest on UK personal debt is approaching the £100bn mark, new figures from uSwitch.com have revealed.... Read more »
Sharp rise in food inflation in 2008
New figures show that growth in food prices rose well above the overall rate of inflation in 2008.... Read more »
Art buyers taking advantage of special loans
Visitors to the recent London Art Fair, which ran for five days from January 14th, were offered special loans to encourage them to make purchases.... Read more »
Govt announces new measures to encourage mortgage lending
In a bid to stimulate the housing market and the economy as a whole, the government has announced new measures to free up money for mortgages.... Read more »
Mortgage market: key facts
In November, there were 11.74 million mortgages in the UK: just one of the 'mortgage' figures put together by the BBC on its website.... Read more »
uSwitch.com: consolidation loan could save borrowers money
Price comparison site uSwitch.com has said that consumers could collectively save themselves £20bn each year by consolidating their unsecured debts into lower-cost forms of credit, such as debt consolidation loans or credit cards with introductory rates.... Read more »
London retail sales fall for fourth consecutive month
A new report has shown the fourth consecutive month of falling retail sales figures for central London, with retailers reporting the worst Christmas figures since 2004.... Read more »
Expert issues "debt addiction" warning
Consumers who are unable to clear their credit card balance each month may have the beginnings of a "debt addiction", it has been suggested.... Read more »
Mortgage holders `have responsibility to take out protection insurance`
When people take on the responsibility of debt, it is their responsibility to take out insurance in case they are no longer able to meet their repayments, an industry body has said.... Read more »
`Over half of mortgage holders may not be benefiting from rate cut`
More than half of UK consumers with home loans may not be benefiting from the recent falls in interest rates because they are on a fixed-rate product, it has been suggested.... Read more »
People `still charitable despite money problems`
Despite the current economic downturn, which has resulted in increasing numbers of people experiencing financial problems such as high level debt, consumers in the UK remain charitable.... Read more »
Recession `will lead to rise in equity release`
As the economic downturn continues, there will be an increase in the number of people - including many with debt problems - who look to equity release as a means of solving their financial problems, it has been suggested.... Read more »
House prices to fall a further 10%
A new report has claimed that the average house price in England and Wales fell by 8% over the past year and is likely to fall another 10% before 'bottoming out' in the second half of 2009.... Read more »
1.5 million 'facing mortgage difficulty'
A consumer group has warned that 1.5 million homeowners with big mortgages could face "disaster" if, as expected, house prices fall by a further 15% this year.... Read more »
Government considers ways of helping car loan market
The Government is looking into ways of ensuring the availability of loans for car buyers, as the economic downturn threatens to seriously harm the industry.... Read more »
Britons opt for UK holidays to avoid debt
A new report has revealed that twice as many British citizens as last year are choosing UK holidays instead of going abroad this year as the downturn continues to put pressure on consumers' finances.... Read more »
Mortgage rescue scheme launched
A mortgage rescue scheme which aims to help keep people in their homes is being officially launched today.... Read more »
Home loan interest payments consuming less income
Interest payments to home loans are taking up a lower proportion of borrowers' incomes, according to the Council of Mortgage Lenders (CML).... Read more »
'Huge debts' cause shoppers to cut spending
Retailers' figures have confirmed that shoppers are spending less 'because of huge debts', The Guardian reports.... Read more »
Growing gap between new buyer enquiries and mortgage approvals
The gap between the number of new buyer enquiries and the number of mortgage approvals is growing, the Royal Institute of Chartered Surveyors (RICS) has pointed out.... Read more »
Loan guarantees - part of Govt. package
The Government will provide guarantees for business loans, Business Secretary Peter Mandelson has announced.... Read more »
Three out of four don't expect income to drop
Britain might have high levels of personal debt, but only 25% of British consumers expect their income to drop over the next 12 months, a poll has revealed.... Read more »
Base rate cut `could do more harm than good`
The decision announced by the Bank of England`s Monetary Policy Committee on January 8th to reduce interest rates by 50 basis points to 1.5 per cent could do more harm than good, it has been suggested.... Read more »
Lender cuts fixed-rate mortgage costs
Britannia has announced that it has cut the cost of fixed-rate mortgages in the light of recent interest rate falls.... Read more »
Lender announces intermediary remortgage deals
A UK lender has announced that three of its intermediary partners will be offering new remortgage deals.... Read more »
Insolvencies `to rise significantly in 2009`
The number of people entering into insolvency is set to rise this year, a firm has predicted.... Read more »
Workers `may benefit from falling mortgage payments`
The personal finances of workers across the UK may benefit from falling mortgage payments, it has been suggested.... Read more »
Firm announces New Year mortgage deals
A company has announced New Year deals on some of its home loans.... Read more »
'Era of interest-free mortgages' could be ahead
After dropping for four consecutive months, the falling base rate may usher in an 'era of interest-free mortgages', The Telegraph reports.... Read more »
Loan seekers turn to credit unions
Welsh credit unions are facing much higher demand for loans, as people find it harder to access more 'traditional' sources of credit.... Read more »
Debt management at the Open University
A free online course on debt management is being provided by the Open University, to help people cope with the effects of the recession.... Read more »
Moving up on housing ladder becoming cheaper
The cost of 'trading up' from the bottom rung of the housing ladder has decreased as property prices continue to fall, an expert has suggested.... Read more »
UK energy bills rise four times faster than in Europe
New figures have revealed that energy bills in the UK have risen more than four times as quickly as in Europe over the past year.... Read more »
Major mortgage lenders pass on base rate cut
Three major mortgage lenders have announced that they will be passing on the full base rate cut to their Standard Variable Rate (SVR) mortgage products.... Read more »
Base rate cut could hold back loans market
Financial experts have warned that January's base rate cut could actually hinder banks' ability to offer loans.... Read more »
Gas prices could rise following wholesale price jump
Hopes of cheaper domestic energy in the coming months have taken a blow following a recent rise in the wholesale cost of gas.... Read more »
Mortgages: base rate cut to 1.5%
The Bank of England today cut the base rate by half a percent to 1.5% - the lowest rate since the Bank was established in 1694 - leading existing and would-be homeowners to hope for further reductions in mortgage rates.... Read more »
Energy bills 'could fall below £1000'
New research has suggested that the average household could have £130 knocked off their annual bills this year, if energy companies reduce their prices as expected.... Read more »
More govt. help with mortgages
The Government has announced that it will provide more help to homeowners who are struggling to make their mortgage payments after becoming unemployed.... Read more »
Base rate cut to historic low of 1.5%
The Bank of England's Monetary Policy Committee has announced a further cut to the base rate, taking it to 1.5% - the lowest rate since the Bank was founded in 1694.... Read more »
Encouraging banks to offer loans
The Government is considering ways of encouraging banks to increase the availability of loans.... Read more »
Growing demand for debt advice
Debt advice services have helped hundreds of thousands of people cope with their debt problems in 2008.... Read more »
Government 'may have to force banks to lend'
The Government may have to force banks to offer more loans and mortgages if the current situation continues, according to a leading economist.... Read more »
2008 car sales down 11.3%
New figures have shown that the number of new cars sold in 2008 fell by 11.3% compared with 2007 - a sign of shifting consumer attitudes as the economy continues to struggle and consumers look to avoid getting into debt.... Read more »
Mortgage payment holidays `may leave people in more debt`
Government-backed deferred payment schemes and mortgage payment holidays may end up leaving homeowners in greater debt, according to one expert.... Read more »
FTBs `to benefit from lower mortgages`
As property prices continue to decline and interest rates drop, first-time buyers (FTBs) who have saved for a deposit will benefit from lower home loan repayments, it has been suggested.... Read more »
Switch energy suppliers `to save cash`
Many consumers, including those who are facing debt problems, could save money by switching their energy suppliers, it has been suggested.... Read more »
Advisers `needed to help bridge income protection gap`
UK consumers are reluctant to take out income protection policies, potentially putting themselves at risk of financial problems - such as high level debt - if they lose their jobs.... Read more »
Equity release `declining in popularity`
Consumers are not relying on equity release to the same extent as they were previously, it has been found.... Read more »
Growth in mortgage lending stalls in November
The growth in net mortgage lending stalled in November, rising by £2.9 billion compared with £3.3 billion in October, according to the latest figures from the British Bankers Association (BBA).... Read more »
Lenders `must make money available to potential house buyers`
If the property market is to recover, lenders must make money available to potential homebuyers in the form of mortgages, it has been suggested.... Read more »
Mortgage market awaits base rate cut
Mortgage lenders, mortgage holders and would-be homebuyers are all awaiting the outcome of this week's Monetary Policy Committee meeting, with experts predicting a further base rate cut.... Read more »
House prices at 2004 levels
The latest report from Halifax has shown that house prices are now back at levels last seen in August 2004.... Read more »
Economy may not recover until 2010
Prime Minister Gordon Brown has admitted that the economic downturn may last longer than expected, following worse-than-expected lending and retail figures for the end of 2008.... Read more »
No disposable income for quarter of families in 2009
A new survey has suggested that increasing numbers of British families will be left with no disposable income in 2009, as unemployment rises and the burden of paying bills and repaying debts continues to grow.... Read more »
BoE `to slash interest rates`
In news which may be welcomed by mortgage holders and consumers with other loans, an expert has predicted that the Bank of England (BoE) will slash interest rates this week.... Read more »
House prices will continue to fall
The Royal Institute of Chartered Surveyors (Rics) have predicted that house prices are set to take a further 10% fall in 2009.... Read more »
Secured credit availability `reduced`
Secured credit availability fell in the last quarter of 2008, it has emerged.... Read more »
More government support needed on mortgage lending, says CML
The Council of Mortgage Lenders (CML) has said that more government support is needed to improve the level of mortgage lending in the UK.... Read more »