Financial News & Information

Understanding Car Insurance Discounts

Posted 2008-04-24

Trying to save money wherever you can is important to us all. Car insurance should be no different. Do not assume that your agent knows everything about you and your vehicle. Drivers should take advantage of all discounts that many...

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‘£345bn could be saved in UK’ through offsetting

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Posted 2008-02-18

UK mortgage holders could save £345 billion collectively if offsetting was popular in Britain, experts say.Research from Intelligent Finance (IF) shows the average UK borrower could save nearly £70,000 with an offset. Cammy Amaira, director of sales at Intelligent Finance, said: “In Australia, the popularity of offset has a lot to do with mind-set. “Australians value home ownership as much as we do, but they don’t want their mortgage to take over their lives, making offset their ideal choice.” He added offset has come on in the UK over the past decade but IF would like it to boom as ‘latest number crunching proves it’s definitely worth it’. Offset mortgages were introduced in 1997 and were initially thought of as a niche product. IF, launched in 2000, is a division of Bank of Scotland. ...

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Rate cut is passed on by mortgage lenders

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Posted 2008-02-17

A cut in interest rates by the Bank of England will be passed on to mortgage holders, lenders revealed.The Bank cut rates to 5.25 per cent yesterday to reduce the effect of the credit crunch on the economy. UK mortgage lenders then announced they will be handing this down to customers -meaning a £100,000 mortgage will decrease by £16 a month. David Kern, economic adviser to the British Chambers of Commerce, said: “The Bank’s decision to cut interest rates to 5.25 per cent was necessary for the economy. “In the face of worsening global and domestic conditions, a refusal to act would have entailed unacceptable risks.” He added the move is ‘not adequate on its own’ as threats to growth are ‘much more acute’ now than current inflation risks. “We would have welcomed a bold UK move to five per cent,” he added. ...

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Darling says more 25-year fixed rate mortgages key for low paid

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Posted 2008-02-16

Low-income households should be given 25-year fixed rate mortgages, chancellor Alistair Darling has said. Mr Darling called for ‘greater availability of affordable long term fixes rate’. The majority of fixed rate mortgages remain popular but only run for up to five years. Mr Darling said: “For many households, particularly those on low incomes, fixing the level of mortgage repayments for several years makes real sense. It can also contribute to wider macroeconomic stability.”Mr Darling has said the launch of mortgages fixed for 25 years would give homeowners more security, in short supply during the current uncertain financial climate. Nationwide is currently the only major UK lender offering a 25-year fixed rate mortgage. The building society, a known supporter of Mr Darling’s views on fixed rate mortgages, revealed its 25-year fixed rate mortgage sold out in just five weeks when launching in March last year. ...

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Bank slashes interest rates by a quarter per cent

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Posted 2008-02-16

The Bank of England has reacted to slowdown signs by cutting interest rates by 0.25 per cent to 5.5 per cent. Although widely expected, it came as a welcome relief for borrowers and was announced a day after E.On became...

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Interest rates ‘to reach 4.5 per cent this year’

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Posted 2008-02-15

The UK is set to avoid a full recession and interest rates are likely to fall to 4.5 per cent in 2008, one expert says. Finance gurus at Global Insight also predict interest rates will again fall - to four per cent in the first half of 2009.Howard Archer, a top economist with the firm, said: “We currently forecast interest rates to fall to 4.5 per cent by the end of 2008 and to four per cent in the first half of 2009. “This is based on our assumption that the UK will avoid recession, but will see extended below-trend growth.” He added the company forecasts GDP growth to be limited to 1.8 per cent in 2008 and 2009 - ‘the equal weakest performance since 1992′. The latest interest rate decision is due to be made on Thursday, and, with it currently standing at 5.5 per cent, it is expected to be cut by at least a quarter per cent. ...

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Central Manchester ‘offering mortgages for £100,000’

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Posted 2008-02-14

Northern cities such as Manchester are still offering £100,000 mortgages amid high house prices.Real estate provider Savills says Manchester in particular is a far better bet than London for those looking for a first home. Tom Rogers, residential investment consultant at Savills, said: “There is a lot on offer. The market is going through a little blip at the moment but as far as property prices go, I think they are quite fairly priced in Manchester. “A one-bedroom apartment is still quite affordable and that’s city centre living .You wouldn’t get that in London.” He added the city has grown ‘significantly’ in the last few years and is still growing. Savills also said Manchester is a vibrant city where there is always something going on. According to manchesterfacts.com, £4.9bn in construction projects are planned there over the next decade. ...

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Young men more likely to opt for debt consolidation

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Posted 2008-02-11

Men in their twenties are more likely to opt for debt consolidation loans than anyone else, figures suggest. Stats from the Halifax found twentysomethings are most likely to take out a debt consolidation loan, followed by those aged 30 to 39.The figures also show more loans are taken out in January than any other month - almost double compared to some months. Neil Chandler, head of Halifax unsecured personal loans, said: “For many people, the start of the year is a time to get personal finances in order - transferring debt from more expensive products such as store cards or other loans.” Men are more likely than women to take out a debt consolidation loan - a stat consistent throughout the year. The Consumer Credit Counselling Service says people should share information about loans with their friends and family. ...

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‘Not all doom and gloom’ for first-time buyers

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Posted 2008-02-11

The housing market is not being closed to first-time buyers despite the ‘credit crunch’, say experts. Darren Cook, head of mortgages at Moneyfacts.co.uk, said the outlook for those looking to buy a home for the first time is not as bleak as it appears.He said lenders are still offering appropriate loans to those wanting to make an initial investment despite well-publicised fresh credit controls. He said: “It’s not all doom and gloom for first-time buyers, it’s just that in the current mortgage market, they are not sure what is going to happen so they are being a bit prudent.” Moneyfacts research showed 11 mortgage lenders have reduced their maximum loan-to-value available on mortgage products since December last year. Although there are less 100 per cent mortgages on the market, this is evidence of lender prudence rather than the closing off of the market to first-time buyers, Mr Cook added. ...

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Single men avoid house buying and couple up to get on the ladder

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Posted 2008-02-10

Single men are shunning home buying but the number of couples buying houses is shooting up, figures say. Research by John Charcol revealed the number of first-time purchases by couples grew from 45 per cent in 2006 to 50 per cent in 2007.Katie Tucker, technical manager for the firm’s website, Charcol.co.uk, said the number of men buying alone fell to match this shift, while the amount of women purchasing homes on their own remained stable. Ms Tucker said: “Buying together is a very sensible choice in terms of affordability, not only for splitting the mortgage and the bills, but more cuddling up should save you on the heating.” She added couples should rent first however, to make sure the decision to live together is watertight. The Bank of England predicts demand for secured loans among British homeowners will rise in the first three months of 2008. ...

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