July, 2011 news
Paying on plastic abroad: the cost of debt
British holidaymakers risk racking up over £457 million in fees by using their credit card - or taking out cash with a debit card - when abroad, according to the independent comparison website uSwitch.com.... Read more »
Junior ISA limit reaches £3,600
The Government has given in to pressure and raised the limit for investment in the Junior ISA Scheme to £3,600 per annum, as reported by the Guardian.... Read more »
USA faces debt crisis
The USA's national debt has reached a critical point. Unless Congress agrees to raise its 'debt ceiling' (the maximum amount of debt the country's actually allowed to carry), the USA will run out of spending money on Tuesday!... Read more »
'Ring-fencing' retail banking: the debate continues
According to Robert Peston, the BBC's Business Editor, up until recently, bank bosses appeared to retain some 'residual hope' that the Government wouldn't force them to 'ring-fence' their retail banking operations to separate them from their investment activities.... Read more »
Young drivers see fall in insurance costs
There's some good news for young drivers: after two years of 'unprecedented' rises on insurance premiums, the average cost of car insurance saw a welcome - if quite minor - fall in this year's second quarter, according to The AA's latest British Insurance Premium Index.... Read more »
Gross mortgage lending up in June
Gross mortgage lending increased by 16% in June to an estimated total of £12.6 billion, according to data released by the Council of Mortgage Lenders (CML).... Read more »
Spending Power improves in Q2
The Spending Power Report, from Lloyds TSB, indicates that household finances improved in Q2. However, an improvement is not being felt yet as household finances had previously dropped to a particularly low level.... Read more »
Bank accounts 'popular targets for fraudsters'
Bank accounts and 'plastic card accounts' such as store cards remain popular targets for fraudsters, according to fraud prevention service CIFAS.... Read more »
Loans & your credit history
Nationwide is currently the only lender on the high street to offer what's called a 'soft quote facility'.... Read more »
Keep holiday plans private, insurance body warns
One problem with social networking is that other people can see what you're doing - in some cases, too many other people. That's a warning from the Association of British Insurers (ABI), the trade body for insurance companies in the UK.... Read more »
Half of children's bank accounts pay under 1% interest
New research by Which? Money indicates young savers are not getting the best interest rates on their savings accounts. The average rate for children's easy access savings accounts is only 1.01%.... Read more »
Dealer car loans 'used for more than half of new purchases'
56% of new cars were purchased using finance from car dealers in the 12 months to May 2011, according to the Finance & Leasing Association (FLA) - the highest share of the market since March 2009.... Read more »
Growth in the UK economy slowed in second quarter
GDP (Gross Domestic Product) increased by just 0.2% in the second quarter of the year, compared with the previous quarter, the Office for National Statistics (ONS) has revealed.... Read more »
Dare Not Ask: are we a nation of 'DNAs'?
When it comes to talking about finances, Britain is a nation of 'DNAs' (Dare Not Asks) - with many considering money a taboo subject, according to new findings from pensions and investment provider Scottish Widows.... Read more »
Young savers 'most likely to be apathetic'
Savers under the age of 25 are more likely to be "apathetic" about their savings than any other age group, research by HSBC has found - and they could be compromising their protection against debt as a result. ... Read more »
Interest-free credit cards: 2-year term on offer
Credit cards that offer an interest-free period can give borrowers an opportunity to work on clearing their debt in the knowledge that every penny is going towards the debt itself - not interest.... Read more »
Virgin reins in British retail banking plans
Virgin Group founder Sir Richard Branson is cutting back on his 'ambitious assault' on the UK retail banking market, as his potential purchase of 630 Lloyds Banking Group branches looks increasingly uncertain, The Financial Times reports.... Read more »
YBS cuts best five-year fixed-rate mortgage rate to 3.49%
Yorkshire Building Society (YBS) has cut the interest rate on its best five-year fixed-rate mortgage deal to just 3.49% - a sign that competition between lenders could be intensifying.... Read more »
Young people choosing mobile banking
New research shows that more and more young smartphone users in Britain and the United States are managing their finances on their phones. Popular features include checking account balances and viewing transactions, as reported on uk.reuters.com.... Read more »
Shoppers 'wary of debt'
Consumers were less likely to splash out on big purchases in June this year, indicating that many are feeling 'wary' about taking on more debt in the current financial climate, Nationwide's Consumer Confidence Index reveals.... Read more »
DAS: Debt Payment Programmes up 35%
The number of people in Scotland starting a Debt Payment Programme through the Debt Arrangement Scheme (DAS) rose by 35% between April and June this year.... Read more »
Metro Bank: one year on
Later this month, Metro Bank, Britain's first new high street bank to open in 100 years, will turn one year old.... Read more »
Wedding insurance: saying 'I do' to protection
The Association of British Insurers (ABI) is reminding couples planning to get hitched this summer to make sure they get insured first.... Read more »
Debt problems in Scotland: some figures
A report from insolvency trade body R3 indicates that more people in Scotland have taken on unsecured debt than anywhere else in Britain, as reported by bbc.co.uk. ... Read more »
New Government research into high-cost credit
The Department for Business, Innovation and Skills (BIS) and the Treasury are commissioning research into 'how a cap on the total cost of credit in the high-cost credit market could affect consumers', as reported by nds.coi.gov, the news distribution service for Government and the public sector.... Read more »
Interest-free credit cards: a rival to loans?
When it comes to interest rates, many people assume that credit cards are a more expensive form of borrowing than loans. However, as the latest interest-free credit cards make very clear, that's not necessarily the case.... Read more »
Banking regulation 'uncertainty' delays shares sell-off
Uncertainty about banking regulation is delaying plans by the Government to sell shares in Royal Bank of Scotland and Lloyds Banking Group, according to the organisation that controls the taxpayers' stakes in the two banks.... Read more »
Five-year fixed-rate mortgages 'as low as 3.64%'
Borrowers looking for mortgage security may be in luck, as lenders are currently 'slashing' the rates on five-year fixed mortgages, This is Money reports.... Read more »
9,000 home loans 'launched or updated' in last quarter
8,968 mortgages were either launched on the market or updated by providers between April and June this year, according to independent financial research company Defaqto.... Read more »
Insurance: finding the right broker
When it comes to finding insurance, a bit of help can be very welcome. BIBA - the British Insurance Brokers' Association - has won an award for providing just that.... Read more »
30 million EU adults have no bank account
The EU Commission has issued a Recommendation to improve access to basic payment bank accounts. It estimates there are 30 million 'adult consumers' in the EU without an account. Social Finance estimates that there are 1.5 million without bank accounts in the UK.... Read more »
Third of holidaymakers set to 'spend more' this year
Almost a third (32%) of British holidaymakers are set to spend, on average, an extra £365 each while abroad this year, despite the continuing difficult economic climate, according to new research from M&S Money.... Read more »
Lloyds bank branch sell-off - who are the bidders?
Lloyds bank is planning to sell 632 branches in the interests of competition, as ordered by the European Commission. Bidders registered their first-round interest before the deadline last week, as reported on telegraph.co.uk.... Read more »
Base rate stays at 0.5% - mortgage rates dropping
Currently there are some of the 'best mortgage deals seen for months' as the Bank of England keeps the base rate low, as reported by moneysupermarket.com.... Read more »
Considering credit card charges on holiday
Choosing whether to use a debit or credit card when on holiday overseas is not always straightforward, as additional costs and charges could see you worse off.... Read more »
FTBs face 'tougher' mortgage market
FTBs (first-time buyers) are still having trouble getting a foot on the housing ladder, despite overall mortgage approvals seeing an increase in June this year, The Independent reports.... Read more »
Fuel poverty: a look at the figures
New figures released yesterday by the Department of Energy & Climate Change (DECC) reveal that the number of households classed as 'fuel poor' increased to 5.5 million in 2009, hitting those aged 60 or over particularly hard, according to Age UK.... Read more »
'Big four' banks oppose ICB's retail 'ring-fencing' plan
The 'big four' banks, Barclays, HSBC, Royal Bank of Scotland and Lloyds Banking Group, are opposing reforms proposed by the Government's Independent Commission on Banking (ICB), as reported by independent.co.uk. ... Read more »
One in twenty young drivers make bogus insurance claims
The recession is having a surprising effect on the car insurance industry. A poll from moneysupermarket.com found that young motorists are 'crashing for cash'. As many as one in 20 motorists under 35 admit to having 'staged' a bogus accident and successfully claimed.... Read more »
Social Market Foundation calls for bank 'kite marks'
Think Tank the Social Market Foundation is calling on the Government for 'kite marks' of quality for financial products like bank accounts. This would help customers find good quality products and the best price, as reported in the Guardian.... Read more »
Good news for those taking on mortgage debt
Five-year fixed-rate mortgages have fallen below 4%. Accord Mortgages, the broker of Yorkshire Building Society, is offering the lowest five-year fixed-rate of 3.64%, as reported by dailymail.co.uk.... Read more »
Fraudulent Wi-Fi networks 'designed to steal bank account details'
People could risk having their bank account details stolen if they are not careful enough when using public Wi-Fi networks, according to Thisismoney.co.uk.... Read more »
Debt & making it to payday
Figures from the Bank of England suggested that Britain is a county still very reliant on borrowing. The amount of personal debt in total stood at £1.45 trillion in May 2011, of which £1.24 trillion of debt was secured on dwellings.... Read more »
CML: Loans up in May
This May, there were more home loans advanced - for remortgaging as well as house purchase - according to the latest figures from the Council of Mortgage Lenders.... Read more »
Rise of BTL market frustrates FTBs
Industry figures have shown that the BTL (buy-to-let) market is on the increase, causing fears that FTBs (first-time buyers) could be 'forced off' the housing ladder, The Telegraph reports.... Read more »
Banks launch iPad apps for accounts
Royal Bank of Scotland and NatWest are the first banks to launch apps allowing customers access to their accounts from an iPad, as reported on dailymail.co.uk. Both of the high street banks are part of the RBS Group.... Read more »
93% 'worried about the impact of inflation'
93% of people in the UK are worried about the effect of inflation on their finances, according to new research from Post Office Savings.... Read more »
Greece 'likely to default on debts'
European leaders have conceded that Greece is likely to default on its debts, according to the Guardian, with a significant knock-on effect on other European nations likely.... Read more »
Who's tackling insurance fraud?
Last week, you may have spotted the news story on our website about the national Insurance Fraud Register, which aims to tackle insurance fraud by allowing insurers to share information about people who've cheated the system.... Read more »
Energy bills 'could double in next five years'
Household energy bills could double over the next five years because of the Government's drive towards 'green' energy, according to Thisismoney.co.uk.... Read more »
Consumer trust in banks 'remains low'
86% of people don't trust banks any more now than they did a year ago, according to new research from PRWeek - showing that consumer trust in major lenders is still lacking.... Read more »
Credit cards leading increase in US debt
Consumer debt in the US grew by just over five billion dollars (£3.2bn) in May, 'led by a boost in credit card use and student loans', as Bloomberg reports.... Read more »
Mortgage borrowers facing difficult decisions
The Bank of England's decision to keep the base rate at 0.5% for yet another month will add to the "quandary" faced by many mortgage borrowers: to fix or not to fix?... Read more »
6.3 million households in fuel poverty
6.3 million households in the UK are living in fuel poverty - amounting to nearly a quarter (24%) of all homes, new research by price comparison website uSwitch.com has revealed.... Read more »
Santander to move call centres back to UK
The high street bank Santander is moving all of its Indian call centres back to the UK, following complaints. The move will create 500 jobs in the country, as reported by the BBC.... Read more »
Hundreds of bank branches face closure
Hundreds of bank branches across the country are facing closure, as many major lenders seek to cut costs by scaling back their banking networks, the Guardian reports.... Read more »
People getting into debt to improve their home
More homeowners are taking on debt to pay for improvements to their property, analysis by Sainsbury's Finance indicates.... Read more »
National Insurance Fraud Register to tackle cheats
Association of British Insurers (ABI) members are funding a national Insurance Fraud Register to 'protect honest customers from insurance fraud'. Estimates suggest insurance fraud costs £2 billion a year, adding an extra £44 to the average annual insurance bill for UK policyholders.... Read more »
Debt Relief Orders introduced to Northern Ireland
Debt Relief Orders have now been introduced to Northern Ireland, giving some struggling borrowers a real chance to tackle their debt problems.... Read more »
Concerns grow about payday loans
Campaigners are voicing their concerns about 'the high-cost lending practices of legal loan sharks,' as reported on express.co.uk. This follows the defeated amendment to the Finance Bill in the Commons this week - MPs are not pursuing a 'crackdown' on cash-lending firms who charge high rates of interest.... Read more »
Mortgages & rising rents
The number of people renting private accommodation in England has increased by 55% in the last six years, as potential buyers delay getting onto the property ladder, the Guardian reports.... Read more »
Bank takeover 'cannot be undone', says Chancellor
Chancellor George Osborne has said the Government won't "unwind" the takeover of HBOS by Lloyds, which was carried out during the 2008 banking crisis.... Read more »
Home loans: 'equity injection' continuing
As this year got underway, homeowners in the UK kept up the trend of 'equity injection', according to Bank of England figures. An article on the BBC website tells the story.... Read more »
Direct insurance & finance deals often better value
Despite the popularity of price comparison sites, they don't always lead people to the best-value deal. That's the claim of ConsumerIntelligence.com, whose research indicates that almost half (46%) of people who turned to a price comparison site went on to find the same deal for less elsewhere.... Read more »
12m homes at risk of debt
The recent Legal & General MoneyMood survey indicates that 1.3m more households in the UK are struggling with their finances, compared with just nine months ago. And around 12 million are at risk of falling into debt, as reported in the Financial Times Adviser.... Read more »
New measures for easier bank account switching
The Payments Council is beginning a new project designed to make switching current accounts easier for consumers and small businesses. Consumers should see real benefits by September 2013, including more competition within the UK's banking sector and more transparency when switching accounts.... Read more »
Credit card approval rates 'should rise a bit'
We can expect lenders to approve a few more credit card applications over the next three months, the Bank of England tells us.... Read more »
Post Office banking still 'months away' for some
For some, plans announced in March last year to allow more banking customers access to their accounts through the Post Office are still 'months away' from bearing results, This Is Money reports.... Read more »
Corby named as England's 'repossession capital'
Statistics have revealed that Corby in Northamptonshire has the highest number of house repossessions in England, as many of its residents struggle with mortgage debt, The Guardian reports.... Read more »
May debt statistics released
National money education charity Credit Action has released its May debt statistics - showing a "mixed picture".... Read more »