News Archive From January 2007

• UK banks are stalling IVAs [31.01.07]
  Despite claims by many of the UK's debt advisers that the period from January to March 2007 is likely to be their busiest ever, a number of listed UK consumer debt advisers have recently seen as much a one-third of their share value wiped -off following growing concerns that UK banks are now adopting a blocking approach to Individual Voluntary Arrangements (IVAs) that they’re not completely happy with.
• Three year high on UK mortgage approvals [30.01.07]
  The recent figures released by the Bank of England have indicated that mortgage approvals in the UK are now at their highest levels in around three years, showing a healthy mortgage market despite rising property prices and interest rates.
• Many fixed rate mortgages suspended or withdrawn [30.01.07]
  Following a number of interest rate rises enforced by the Bank of England a mad rush for fixed rate mortgages, a number of lenders have made a decision to either suspend or withdraw some of the popular fixed rate mortgages that have been on offer in the past, stating that there has been a mad rush for these mortgages and the funding for them has therefore been exhausted.
• British government announces new national scheme to combat loan sharks [29.01.07]
  Following a two year successful pilot scheme conducted in Birmingham and Glasgow to tackle criminals who illegally give out quick cash loans, the Chancellor of the Exchequer, Gordon Brown, has announced that the British government is going to nationalise the scheme and to make available new funding to try and combat the problems created by loan sharks.
• Interest Rate Rise Hits First Time Buyers [26.01.07]
  According to recent research first time buyers in the UK will suffer the most from the recent rise in the base rate by the Bank of England. It is anticipated that first time buyers will struggle to obtain homeowner loans, as well as maintaining existing ones, compared with buy-to-let investors over the next few months due to the rise in interest rates.
• Bankruptcy simply isn’t an option for thousands of British women [25.01.07]
  Despite the fact that it now being considered as one of the major stress related worries among women in the UK today, a new report issued by the Consumer Credit Counselling Service (CCCS) says that more than half of the women they had advised to go bankrupt had refused to do so.
• Citizens Advice Warn Debts Could Take a Lifetime to Repay [24.01.07]
  A report from Citizens Advice has startlingly revealed that it could take, on average, 77 years for UK citizens to pay off their debt, including credit cards, store cards and personal loans. The consumers the charity is referring to are those who seek help and advice from Citizens advice.
• Record Number Of Retired Brits Exploring The Option Of Equity Release Products [23.01.07]
  According to a report recently released by Safe Home Income Plans (SHIP), a record number of retired British homeowners explored the option of equity release products in 2006.
• Citizens Advice Criticises Irresponsible Lenders [22.01.07]
  The Citizens Advice Bureau is aiding UK consumers who have borrowed far more than they can afford, to have their debts written off. The bureau has admitted it is shocked at the level of irresponsible lending by banks, which continue to lend sums to consumers who have little chance of repaying the debt.
• The Cost of Home Loans Rises [19.01.07]
  The UK's largest mortgage lenders will be the first to raise the cost of the homes loans by raising their interest rates and will come into effect on February 1. The Halifax and Nationwide have reacted to last Thursday's surprise 0.25 per cent base rate increase by the Bank of England by passing the rise onto customers.
• Remortgaging could save you a small fortune on repayments and interest [18.01.07]
  Recent hikes in mortgage interest rates in the UK have left many people struggling to keep up with repayments, and with further interest rises predicted by experts during the coming months now could be the ideal time for many homeowners to consider remortgaging in order to save themselves money.
• More bad loans predicted for the early part of 2007 [17.01.07]
  A number of banks and building societies in the UK are predicting that there will be a rise in bad debts and loans in the first quarter of 2007.
• Brits Are Taking Out Personal Loans to Meet Tax Bill Demands [16.01.07]
  According to Sainsbury's bank, thousands of Britons are opting to use personal loans to pay their tax bills. Many find that their tax bills are larger than they budgeted for and will consider applying for a personal loan to either make up the shortfall or pay the whole bill. The bank estimates that the average loan amount will be £10,885, to pay tax bills.
• Over 50 Families A Day Lose Their Home In The UK [16.01.07]
  According to new data released by the Royal Institution of Chartered Surveyors, more than 50 families a day will lose their homes in the UK during 2007 because they can no longer maintain their debt repayments.
• Shock Rise In Interest Rates [16.01.07]
  The Bank of England shocked markets yesterday by once again rising its base lending rate by a quarter-point to 5.25%. This is now the third time that the Bank of England has announced a quarter-point rise in base rate since August – and the second time that the announcement of an interest rate rise has taken the markets by surprise.
• FSA to Step Up Crackdown On PPI [15.01.07]
  The FSA (Financial Services Authority) is to intensify its crackdown on PPI (payment Protection Insurance) by widening its net of firms to be investigated and by using mystery shoppers.
• Consumer Spending To Fall With Possibility Further Interest Rate Rises [14.01.07]
  A general fear that overspending by Brits over the Christmas and New Year period will not help to control UK inflation, and after the Bank of England raised interest rates twice late last year to 5%, a new report by HBOS indicates that Brits are now catching on to the savings bug and that there will be a general overall reduction in UK loan and credit card debt in the first quarter of 2007.
• December Saw Rise in Loan Enquiries [13.01.07]
  Elephant Loans & Mortgages PLC has said it experienced a 'substantial increase' in the amount of loan enquiries last December. The material uplift in enquiries has been partly attributed to the firm's recently established new affinity partner relationships, which forges close links with its customers.
• 2007 to See a Rise In Bad Loans According To Banks [12.01.07]
  A survey by PricewaterhouseCoopers, in conjunction with the CBI, has revealed that almost 30 per cent of UK banks and over 75 per cent of building societies predict a rise in bad loans during the first three months of 2007.
• Interest rate rises unlikely to affect mortgage industry [11.01.07]
  With two interest rate rises taking place in the space of a few months, between August and November 2006, some may have been concerned that the mortgage industry could suffer, with many unable to take out a mortgage at the current interest rate of five percent, particularly with a number of experts predicting that another rise is on the cards early in 2007.
• Financing your home improvements [10.01.07]
  As Christmas and the New Year pass us by, many of us in the UK start to think about home improvements, and start preparing to spend the spring decorating and repairing our homes.
• Scotland Sees Biggest House Price Rise in 2006 [09.01.07]
  Not only did 2006 see one of the largest rises in house prices in Scotland but also saw prices rise by more than the rest of the UK.
• Mortgage advice for first time buyers [08.01.07]
  As a first time buyer the whole process of purchasing a property can be very stressful, from trying to raise a deposit and looking around for a suitable mortgage to making an application and seeing the whole process through.
• The Benefits of Consolidation Loans [06.01.07]
  With UK consumer debt reaching unprecedented levels, many are seeking ways to help reduce their debts.
• Could new Lloyds mortgage help first time buyers? [05.01.07]
  Lloyds TSB has recently announced the launch of a new mortgage deal labelled the ‘low-start mortgage’. This mortgage offers consumers the chance to take out a mortgage loan with a fixed interest rate of 1.99 percent, which is fixed until February 2008.
• Mortgage equity loans strong as house prices rise [04.01.07]
  According to recent reports the steady rise in house prices in the UK has seen a recent rise in the number of homeowners borrowing money against the equity in their properties.
• Experts predict another interest rate hike in New Year [03.01.07]
  A number of financial experts are now predicting that the Bank of England will enforce another interest rate hike in the New Year following analysis of related data.
• Bad debts hit record levels for banks [02.01.07]
  2006 saw the highest level of consumer bad debts for banks on record, according to figures released from KPMG.
• Is now the time to remortgage? [01.01.07]
  Over the past six months the Bank of England has hiked up interest rates on two occasions, taking the base rate of 4.5 percent to 4.75 percent, and more recently to 5 percent. On top of this, many experts are predicting a further rise in the interest rate in the New Year.