January, 2011 news
Banks `squeezing` customers
Banks are `squeezing you`, an article in the Express claims, explaining that while many people expect free banking, `the big banks are doing lots behind the scenes to change this`.... Read more »
34% relied on debt to fund January living costs
Research by the Post Office has revealed that more than 11.5 million people (34% of credit card holders) relied on credit card debt to fund their day-to-day living costs in January, the Guardian reports.... Read more »
Families being offered smaller mortgages
The Telegraph has reported that families are being offered smaller mortgages than couples with no children.... Read more »
One in ten credit card users `covering post-Christmas costs`
10% of respondents to a Post Office survey who used their credit card in January said they needed their card to get them through to payday after the Christmas period.... Read more »
Asda: Biggest fall in household disposable incomes on record
Families` disposable incomes have fallen significantly in recent months, according to research by Asda, as many households struggle to deal with rising costs of living. ... Read more »
Home loan borrowers to benefit from increased protection
Home loan borrowers to benefit from increased protection... Read more »
Two MPC members voted for bank rate increase
Minutes from January`s Monetary Policy Committee (MPC) meeting show that two policymakers voted in favour of an increase in the bank rate (also known as the base rate), adding to speculation that we could see a rise in the coming months. ... Read more »
£1.55 billion of loans in first quarter `for debt consolidation`
Up to 139,000 personal loans issued in the first three months of this year could be taken out for the purpose of consolidating debt, Sainsbury`s Finance has claimed.... Read more »
New Year DIY-ers should check their insurance
More than a quarter of Brits (28%) will be undertaking some kind of DIY work this month, according to Halifax Home Insurance.... Read more »
Home loan approvals down 10% in 2010
According to figures from the British Bankers` Association (BBA), the number of home loans approved for house buyers by the main UK banks dropped by 10% in 2010, the BBC reports.... Read more »
Britons admit to `forgotten` savings accounts
Research from Clydesdale and Yorkshire Banks has revealed that an estimated 10 million Britons admit they have `forgotten about savings accounts`, only to discover an average of £600 in old accounts at a later date.... Read more »
One in five retirees carrying debts of £33,000
According to the findings of a survey by Prudential, one in five people retiring this year will still be carrying an average debt of £33,000, The Telegraph reports.... Read more »
Bank of England: inflation could hit 5% this year
Bank of England Governor Mervyn King has warned that inflation is likely to continue rising this year, hitting between 4% and 5% before dropping back in 2021.... Read more »
Cheaper options for cheaper debt?
Are there cheaper forms of debt out there? Should there be? An article in the Independent takes a look at one kind of debt that`s come up against quite a lot of criticism: doorstep lending.... Read more »
Insurance: ABI warns drivers to stay within law
When money`s tight, people tend to look for ways to cut their costs. As the Association of British Insurers (ABI) warns, though, it`s vital to stay within the law when you`re doing this.... Read more »
More protection needed for bank customers looking to invest
The FSA (Financial Services Authority) is calling for a greater level of protection for bank customers looking for investment advice, the Guardian reports.... Read more »
One in five took on debt over Christmas
According to research by digital banking provider IE, one in five people took on debt to pay for their Christmas shopping last year - and are now `facing bills they are unable to pay`, The Telegraph reports.... Read more »
Is `free` banking really free?
While Ana Botin, the new head of Santander in Britain, has told MPs that the `practice of offering free current accounts was "ingrained" in British culture`, research for The Daily Telegraph has revealed that consumers are paying more than ever for bank accounts.... Read more »
Credit card costs could rise under new directive
There could be an increase in the cost of credit cards and personal loans when new unsecured lending rules are introduced next month, experts have claimed.... Read more »
Bank of Scotland reports some good news
The latest report from the Bank of Scotland looks back over recent changes in the Scottish labour market.... Read more »
Women `more likely to seek debt help than men`
Women are more likely to seek help with their debts than men, two debt charities have said, despite the fact that men are more likely to go bankrupt.... Read more »
Business leader calls on Bank of England to resist rate rises
A Greater Manchester business leader has called on the Bank of England to resist increasing the base rate in the face of growing inflation.... Read more »
December home loans `subdued`
Figures from the Council of Mortgage Lenders (CML) have shown that home loan lending during the final month of 2010 was `subdued`, with an estimated £11.0bn lent out.... Read more »
Record-high fuel prices `changing driving habits`
Two thirds of motorists say they have been forced to change their driving habits because of the increased cost of motoring, according to price comparison site moneysupermarket.com.... Read more »
Only 7% of families `feel completely financially protected`
93% of families do not feel they are adequately financially protected, according to recent research by insurance company Aviva.... Read more »
Call for payday loan interest rate cap
A cross-party group of MPs is supporting a motion demanding action for new regulation in the home credit market - with a view to capping interest rates charged on payday loans, the Guardian reports.... Read more »
More encouragement needed for savers
Based on findings from independent research, AEGON is advising the Government to take a `fresh approach to encouraging retirement savings in the UK`.... Read more »
A flat mortgage market in 2011
We can expect a `flat` mortgage market this year, the Council of Mortgage Lenders has confirmed, in this year`s first issue of `CML news & views`.... Read more »
How debt affects the `UK modern family`
Research by insurer Aviva has revealed that 67% of families in the UK are carrying unsecured debts, the Guardian reports.... Read more »
Bank of England `set to increase base rate in fourth quarter`
A high proportion of analysts still believe that the Bank of England will increase the base rate in the final quarter of this year, a poll by Reuters has found.... Read more »
Capping the cost of debt?
Today, a Commons committee will look at the cost of debt. Specifically, they`ll be discussing the need for new regulation in the home credit market - and the possibility of capping the cost of payday loans.... Read more »
Insurance: how much is enough?
Well over £200bn worth of home contents are at risk in the UK, according to a new report that examines the `underinsurance trap`.... Read more »
Bank accounts could soon offer `real rate of return` again
According to an article in The Telegraph, more savers could soon see a real rate of return on the money they deposit in their bank accounts, with interest rates expected to start rising again by June. ... Read more »
Bank needs `to stay firm` on interest
The Bank of England needs to `hold its nerve` when it comes to the base rate, as the pressure to raise the rate increases in the face of rising inflation.... Read more »
Amount of credit card debt taken on falls
Figures from PricewaterhouseCoopers (PwC) have revealed that the amount of debt consumers took on over the past year using credit cards has fallen to £97bn, its lowest level since 2005. ... Read more »
Mortgage market unchanged
According to data from the Council of Mortgage Lenders (CML), the mortgage market remained quiet in November, with the number of mortgages advanced to people purchasing a home `unchanged`, the BBC reports.... Read more »
Credit card users `benefiting from longer offers`
Promotional offers on credit cards are lasting longer, according to research by comparison site moneysupermarket.com.... Read more »
Change to retirement age could lead to home loan lending `rethink`
Experts have warned that scrapping the default retirement age (DRA) could have `far-reaching consequences` for a lot of people`s financial planning - particularly those taking out home loans and saving for retirement, The Telegraph reports.... Read more »
Increased working hours helping students with debt
There has been a 40% increase in the number of hours worked by students during university holidays since 2008, according to a joint report by the NUS (National Union of Students) and Endsleigh. ... Read more »
Bank of England holds base rate amidst speculation about rise
The Bank of England has decided to keep the base rate at 0.5% for the 22nd consecutive month, while making no changes to its Asset Purchase Programme.... Read more »
Mortgages: time to make a move?
Is now a good time to look for a remortgage? We`ve seen so many arguments for and against this, it`s hard to know whether it makes sense to `move` now or to wait and see.... Read more »
Millions would struggle with home loans if rates went up
Three million people would find their home loans difficult to service if interest rates went up by just 1%, The Telegraph reports.... Read more »
Savers turn away from bank accounts
According to research conducted by the Financial Services Compensation Scheme (FSCS), there`s more than £7bn in cash `lying around people`s homes`, suggesting that many people are turning their backs on bank accounts and looking after their money themselves, The Telegraph reports.... Read more »
Three million `would struggle with 1% mortgage rate rise`
Almost three million homeowners would struggle to repay their mortgage debt if their interest rate increased by just 1%, research by insurer MarketGuard has found. ... Read more »
More tenants struggling with priority debts
According to the Association of Residential Lettings Agents (Arla), a rising number of tenants are finding it difficult to pay their rent, the BBC reports.... Read more »
Bank accounts `starting to charge for authorised overdrafts`
There is a `growing trend` amongst banks and building societies of charging for the use of authorised overdrafts, according to advice website lovemoney.com.... Read more »
Where`s your debt threshold?
When would you start to lose sleep about your debts? What would you see as a worrying level of debt?... Read more »
Potholes to cause `rash` of insurance claims
With so many roads in a poor state of repair, we can expect a `rash` of insurance claims due to potholes. So says AA Insurance, which says roads are on `borrowed time` as maintenance budgets are cut and the severe weather causes further damage to roads.... Read more »
25% can`t afford to pay money into savings account
According to a survey by moneysupermarket.com, 25% of people living in the UK admit they can `no longer afford` to pay money into a savings account, The Telegraph reports.... Read more »
Bank of England reviews lending
Every three months, the Bank of England publishes its `Credit Conditions Survey`, which shows how much lending has been going on over the last quarter - and what we can expect to see over the next one.... Read more »
Homeowners `losing touch with mortgage reality`
According to tracking data from unbiased.co.uk, today`s generation of mortgage holders is `rate-spoilt`.... Read more »
Consumers face higher-than-advertised rates on debt
According to an article on the BBC, more people looking to take on debt in 2011 may find they`ll be charged higher than the advertised interest rate under new European rules.... Read more »
200,000 in East Midlands `used credit cards for mortgage or rent`
More than 200,000 people living in the East Midlands used their credit card to cover their mortgage or rent payments in the year to August 2010, research by housing and homelessness charity Shelter has revealed. ... Read more »
Voucher codes `helping consumers beat VAT increase`
There has been a surge in the number of people searching the internet for discount voucher codes, according to shopping search engine Twenga, as consumers look to reduce their outgoings and minimise the impact of this month`s VAT rise.... Read more »
Barclaycard offers `market-leading` 17-month interest-free credit card
Barclaycard has increased the interest-free balance transfer period on its `Platinum with Balance Transfer Visa` credit card to a market-leading 17 months, according to Which?.... Read more »
`Price war` breaks out in loans market
Research from moneysupermarket.com has suggested that a price war has broken out in the personal loans market - with the average rate falling to its lowest level in two years, The Telegraph reports.... Read more »
Warning over home loan `drought`
According to an article in The Telegraph, potential home buyers have been warned to expect a New Year home loan drought as `Britain`s nationalised banks will no longer be obliged to offer affordable home loans`.... Read more »
FSCS launches consumer awareness programme
The FSCS (Financial Services Compensation Scheme) is running a programme to raise awareness of the Scheme and how it protects people who`ve deposited money with a regulated financial institution.... Read more »
Is getting a mortgage getting easier?
It looks like it`s getting easier to find a mortgage. Credit reference agency Equifax has reported quite a significant drop in the number of people who`ve been unable to get a competitive deal when they look for a new mortgage.... Read more »
Lenders `may be easing criteria for loans`
A recent drop in the number of people struggling to obtain credit may suggest that lending criteria are easing, says credit reference agency Equifax.... Read more »
Almost 14% of drivers `have never switched insurance provider`
13.6% of motorists have never switched insurance provider, according to price comparison site Gocompare.com - meaning they could be missing out on significant savings on their premium.... Read more »
Over half regret not repaying debts more quickly
According to research by first direct, a large number of UK adults regret not taking a `longer-term view of their finances`.... Read more »
Credit card debt: nearly £3bn to be transferred
This year, we can expect to see £2.8bn of credit card debt transferred, as over 2.8 million people transfer an average of £1,015 to a new credit card.... Read more »
29% of adults `have never switched bank account`
Recent research from Gocompare.com has found that almost a third of UK consumers (29%) have never switched bank account.... Read more »
Credit card spending habits in US
A survey commissioned by CESI Debt Solutions has revealed some interesting statistics about credit card spending habits amongst retirees in the U.S, newsweek.com reports.... Read more »
Interest rate warning for mortgage holders
The Bank of England has recently warned that interest rates will hit around 5% - meaning mortgage holders could face an additional £202 a month in mortgage costs, the Daily Mail reports.... Read more »
Variable-rate home loan customers at risk of interest rate rises
According to an article published in The Guardian, variable-rate home loan customers are at risk of interest rate rises.... Read more »
Debt dropped in November
Last year may already seem like a long time ago, but the `Lending to individuals` figures for November 2010 have just been released by the Bank of England.... Read more »
Kick the habit - and save on insurance too
With people around the country considering their New Year`s resolutions, a common one is giving up smoking once and for all.... Read more »
Changes in the way credit card debt is repaid
People carrying credit card debt will `have a better chance of avoiding being surprised` by rises in interest rates, thanks to the introduction of a new set of rules in the New Year, the BBC reports.... Read more »
VAT reaches 20%
VAT has been increased to 20% as the Government looks to `boost tax revenues to cut its deficit`, the BBC reports.... Read more »
Weaker mortgage market in 2011?
An article in The Telegraph points to speculation about the strength of the mortgage market in 2011, following the release of the Council of Mortgage Lender`s (CML`s) latest figures.... Read more »
Credit card holders advised to check FX rates
Sainsbury`s Finance has warned people who are planning to travel abroad over the festive period to check the foreign exchange rate on their credit card before making any purchases.... Read more »