Tue, 18 Nov 2008 03:44:52 -0800
The Government is developing a mortgage rescue scheme for vulnerable households in England and Wales.
As the Council of Mortgage Lenders (CML) reports, ‘vulnerable’ can mean anything from elderly people and pregnant women to families with children and people with a disability.
Not available yet, the mortgage rescue scheme is meant to start in January 2009, and is expected to help up to 6, 000 households over a two-year period.
The CML website reminds visitors that anyone having a hard time paying their mortgage should talk to their mortgage provider, seek free advice and ‘check the options available to you’ – a homeowner’s mortgage payments may be covered by an insurance policy, or there may be state benefits which could, for example, raise their income or help with their mortgage repayments.
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Think Money work with a panel of lenders to offer a range of mortgages. If you are considering taking out a mortgage – or just looking for advice – contact one of our mortgage advisers today.
Tue, 18 Nov 2008 11:53:00 -0800
The Government plans to provide small and medium-sized companies in the West Midlands with an initial £4 million in loans.
The aim is to help businesses that are finding it hard to obtain loans through ‘normal’ channels.
The Government-funded Regional Development Agency, Advantage West Midlands, will provide individual loans of up to £250, 000 to ‘help bridge the gap for businesses suffering short-term funding problems due to the current financial crisis’.
“A lot of people think about personal loans when they hear the phrase ‘credit crunch’ but loans are extremely important to businesses too, ” said a loans expert for Think Money.
“Businesses rely on loans and other kinds of credit, so it’s good to see the Government taking action in the form of schemes like this: they may not have a direct impact on consumers, but by protecting businesses, they’re protecting jobs – and the economy as a whole.”
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Think Money work with a panel of lenders to offer a range of loans. If you’re thinking about getting a loan, or just looking for advice, contact one of our expert loan advisers today.
Tue, 18 Nov 2008 00:00:00 -0800
Unemployment is expected to rise to around 2.9 million in 2009 as the economy shrinks, according to the CBI (Confederation of British Industry).
Problems in the financial world and a dramatic deterioration of business conditions in the last two months have ‘darkened the economic outlook for 2009 even further’, the CBI warns.
According to the CBI, we can expect a slow recovery throughout 2010, but only after the economy has already shrunk by 1.7% in 2009.
“It’s important for people in debt to find ways of cutting back on the cost of their debts during times like these, ” said a Think Money debt expert.
“One way of doing this is to overpay credit card debts. Over time, interest charges can significantly add to the cost of credit card debt, so it’s generally in the borrower’s best interest to pay off these debts as soon as realistically possible.
“Say someone has a £3, 000 credit card debt on a card that’s charging 17% per year. If they can afford to pay off an extra £100 today, that’s £17 they won’t be charged in interest over the next 12 months.
“It’s always worth making an effort to pay more than the minimum required payment, but during a long period of economic gloom, it’s particularly important for people in debt to save money wherever possible.”
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Think Money offer a range of debt solutions, including debt management, debt consolidation loans and IVAs (Individual Voluntary Arrangements). If you are worried about your debt, contact one of our expert debt advisers today.Tue, 18 Nov 2008 05:45:22 -0800
Rapidly falling house prices have caused the number of people selling their homes to plummet by 43% in a year, according to housing market experts.
Rightmove reported that the number of houses coming onto the market has fallen from 35, 000 per week a year ago to around 20, 000. Asking prices also fell by 2.9% this month alone, down to £222, 979 on average.
However, tight lending criteria on mortgage availability are likely to ease in 2009, Rightmove claims, which could aid a recovery.
A mortgage expert for Think Money said: “Fewer homeowners are looking to sell because they stand to get a lot less for their homes than, say, two years ago. There is also the problem of negative equity, in which the value of many people’s homes no longer covers their mortgage debt.
“If, however, the predictions that lending criteria will soon ease are true, and more mortgages are offered, then we may well see houses begin to regain value in the reasonably near future.”
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Think Money work with a panel of lenders to offer a range of mortgages. If you are considering taking out a mortgage, contact one of our expert mortgage advisers today.Mon, 17 Nov 2008 11:44:00 -0800
The Bank of England’s ‘shock’ base rate cut seems to be working in borrowers’ favour, with a leading mortgage lender offering a fixed-rate mortgage deal with 3.99% interest.
Barclays, lending under the Woolwich brand, has offered a 3.99% interest rate for one year to borrowers with a 40% deposit, along with a £995 mortgage arrangement fee.
Borrowers will automatically switch to a tracker mortgage at 1.99% above the base rate once the fixed-rate period has ended, The Telegraph reports.
A mortgage expert for Think Money said: “Mortgage rates below 4% could be considered a real milestone for borrowers, and could prompt more lenders to follow suit. Compare this with a typical mortgage from a year ago – let’s say a 6% fixed-rate mortgage of £120, 000 – and the savings could be around £140 per month.
“Once a number of similar deals reach the market, it could become difficult for homebuyers to choose between them. As always, it’s important to consider the fees involved – we advise anyone looking for a mortgage to speak to an independent mortgage adviser beforehand.”
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Think Money work with a panel of lenders to offer a range of mortgages. If you are considering taking out a mortgage, contact one of our expert mortgage advisers today.Mon, 17 Nov 2008 03:58:47 -0800
Lenders have still shown no sign of cutting interest rates on personal loans, over a week after the Bank of England’s dramatic base rate cut to 3%.
It was hoped that the 1.5% base rate cut would encourage lenders to cut interest rates on mortgages and personal loans, but so far only mortgages seem to have been affected.
However, many economists are predicting further base rate cuts, with some expecting to see a base rate as low as 1% by the middle of next year – which could encourage lenders to reconsider their interest rates.
A loans expert for Think Money said: “The cost and availability of loans does not seem to have been affected much by the recent base rate cut. However, rates could begin to fall as the effects of the cut become more apparent.
“In the meantime, it’s still very much possible to get a loan – it may just take a little more preparation than it used to. As with all things finance-related, we advise consumers to seek independent advice before taking out a loan.”
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Think Money work with a panel of lenders to offer a range of loans. If you are thinking about getting a loan, contact one of our expert loan advisers today.
Mon, 17 Nov 2008 04:19:44 -0800
New figures have shown a ‘surprise’ increase in spending on debit and credit cards in the UK, the BBC reports.
September figures from Apacs (the Association for Payment Clearing Services) showed a 9.4% increase in credit card purchases in September, while gross lending increased by 7.4%.
The figures showed that the total value and volume of purchases were both higher than in any other month in the last year.
A debt expert for Think Money said: “Credit cards are a perfectly reasonable way of spending money, so long as enough of the debt is paid off at the end of each month. If that doesn’t happen, the interest can soon begin to build up, and the high APR on some credit cards can mean it doesn’t take long before some credit card debts become unmanageable.
“With a recession looming and the festive season approaching, we strongly advise consumers to tackle any debts as soon as possible, to minimise any potential financial hardship in the future.”
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Think Money offer a range of debt solutions, including debt management plans, debt consolidation loans and IVAs (Individual Voluntary Arrangements). If you are worried about your debt, contact one of our expert debt advisers today.
Thu, 13 Nov 2008 07:59:22 -0800
More mortgage providers are passing on the Bank of England’s 1.5% base rate cut.
As the BBC reports, Coventry Building Society and Clydesdale and Yorkshire Bank have joined the ranks of mortgage providers passing on the full 1.5% saving to customers on their standard variable rate (SVR) mortgages.
Other major mortgage providers, such as Nationwide, HBOS, RBS and Northern Rock, had already agreed to cut their SVR rates.
The news will come as a relief to the many homeowners on SVR mortgages – depending on the size (and terms) of their mortgage, a 1.5% cut could easily knock more than £100 off their monthly mortgage payments.
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Think Money work with a panel of lenders to offer a range of mortgages. If you are considering taking out a mortgage, contact one of our expert mortgage advisers today.Thu, 13 Nov 2008 00:00:00 -0800
Last Thursday’s 1.5% base rate cut was a good sign for borrowers and would-be borrowers alike.
Taking the base rate down from 4.5% to 3%, the cut means the base rate is now at its lowest level since 1955.
However, any fall in the Bank’s base rate doesn’t necessarily translate into cheaper loans for the public. Loans and mortgages – apart from tracker deals – aren’t actually linked directly to the base rate, but depend on the LIBOR (London Interbank Offered Rate), the average rate at which lenders lend to each other.
Even so, the cut could be seen as a good sign for people looking for a loan, as it does mean banks can borrow more cheaply from the Bank of England. As the Bank’s website puts it: ‘The Bank implements its interest rate decisions through its financial market operations – it sets the interest rate at which the Bank lends to banks and other financial institutions.’
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Think Money work with a panel of lenders to offer a range of loans. If you are thinking about getting a loan, contact one of our expert loan advisers today.Thu, 13 Nov 2008 08:11:38 -0800
Britain’s high level of personal debt makes the country “especially vulnerable to the global economic downturn”, Liberal Democrat Leader Nick Clegg has warned.
“The fact that Britain’s economic growth has been built on a mountain of personal debt means that we are now especially vulnerable to the global economic downturn, ” he said.
“While we may have comparatively lower levels of public debt than other developed countries, Britain’s level of personal debt is unrivalled anywhere in the world outside of the US.”
Speaking of the need to “break our debt addiction before our children get sucked into it too”, Mr Clegg insisted that “financial literacy has to be a much bigger part of education. We have to be honest: maths for life is more important than trigonometry for most people.”
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Think Money offer a range of debt solutions, including debt management, debt consolidation loans and IVAs (Individual Voluntary Arrangements). If you are worried about your debt, contact one of our expert debt advisers today.Thu, 13 Nov 2008 08:24:27 -0800
Mortgage rates for first-time buyers are up 0.75% compared with last year, despite cuts in the base rate, according to a new survey.
The survey, by mortgage broker mform.co.uk, showed that the most competitive two-year fixed-rate mortgage deals for those with a 10% deposit have gone up from 5.69% in November 2007 to 6.44% this month.
There had been some hope that the cost of fixed-rate mortgages would come down after the recent 1.5% base rate cut, but so far the rates appear to be largely unchanged.
A Think Money mortgage expert said: “Although most lenders have responded well to the base rate cut with regard to variable-rate mortgages, fixed-rate mortgages have yet to experience the same kind of cuts. This continues to prevent many would-be first-time buyers from climbing on the housing ladder.
“That said, it is still possible for first-time buyers to get a mortgage, and it may well become easier in the not-too-distant future. In the meantime, speaking to a good mortgage adviser can improve buyers’ chances of getting the best mortgage deals.”
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Think Money work with a panel of lenders to offer a range of mortgages. If you are considering taking out a mortgage, contact one of our expert mortgage advisers today.Thu, 13 Nov 2008 16:34:00 -0800
The wholesale cost of borrowing continued to fall this week, raising hopes that interest rates on loans and mortgages could fall in the near future.
Three-month sterling LIBOR (London Inter-Bank Offered Rate) – the rate at which banks lend to each other – fell to 4.37% this (Tuesday) morning, and is widely expected to fall further.
The LIBOR rate is a reflection of how expensive it is for lenders to borrow funds for loans and mortgages, and is often used to set rates for consumer lending.
A loans expert for Think Money said: “The LIBOR rate has been high compared with the base rate in recent months, but lenders have now started cutting interest rates after the most recent base rate cut.
“So far, some variable-rate mortgages have really benefited from interest rate cuts, but we hope that once the LIBOR rate falls closer to the base rate, loans will become cheaper across the board.”
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Think Money work with a panel of lenders to offer a range of loans. If you are thinking about getting a loan, contact one of our expert loan advisers today.Thu, 13 Nov 2008 08:36:36 -0800
The price of home energy may be set to fall, after the UK’s second-largest energy provider said it may be ready to cut prices in early 2009.
Scottish and Southern Energy has said that as long as wholesale oil and gas prices continue to fall, it may be able to make a reduction in prices to consumers.
The announcement comes as energy companies find themselves under increasing pressure from consumer watchdogs and the Government to cut their prices in line with the rapidly falling prices of oil and gas.
Earlier this year, Scottish and Southern Energy raised gas prices by 29.2% and electricity prices by 19.2%, while the other five major suppliers implemented similar rises.
A debt expert for Think Money said: “This could be the news billpayers have long waited for. Many people feel that current energy prices are unfair, and in many cases households are being pushed into debt in order to heat their homes.
“A reduction in energy prices will ease the pressure on billpayers, even if it doesn’t solve the debt problems many families are already facing. We advise anyone who finds themselves struggling with debt to seek professional debt advice as soon as possible.”
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Think Money offer a range of debt solutions, including debt management, debt consolidation loans and IVAs (Individual Voluntary Arrangements). If you are worried about your debt, contact one of our expert debt advisers today.Thu, 13 Nov 2008 08:52:12 -0800
Finding a deposit for a mortgage became a bit easier in September, when the government raised the threshold for stamp duty.
As a result of that change, the Council of Mortgage Lenders reports, 51% of homebuyers paid no stamp duty at all in September 2008; in September 2007 only 22% of homebuyers had managed to avoid paying stamp duty.
Before the threshold was raised, stamp duty had been charged on all houses worth more than £125, 000; the change meant that this figure was raised to £175, 000.
"Stamp duty is charged at 1% for houses above the threshold and up to £250, 000, " said a mortgage expert for Think Money, "so it would now cost someone buying a £175, 000 house nothing – rather than £1, 750, as it would have before the threshold was raised.
"It`s a significant saving, which could really help homebuyers save up the kind of deposit which mortgage providers are requiring in today`s mortgage market."
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Think Money work with a panel of lenders to offer a range of mortgages. If you are considering taking out a mortgage, contact one of our expert mortgage advisers today.Thu, 13 Nov 2008 08:55:55 -0800
LIBOR (the London Interbank Offered Rate) is the average rate banks charge each other for loans – and it`s falling steadily.
This year, thisismoney.co.uk reports, the three-month sterling LIBOR rate started off at around 5.5%. In late September, it peaked at 6.3%, but since then it has kept on dropping:
• on 10 November, it was 4.42%; • on 11 November, it was 4.38%; • on 12 November, it was 4.31%; and
• today it fell to 4.2% - just 1.2% above the base rate.
Loan providers tend to look at the LIBOR rate when they`re calculating how much to charge for loans to consumers. So this steady drop is good news for anyone looking for a loan – or at least it could be, as loan providers aren`t actually obliged to reduce the cost of their fixed-rate or variable loans.
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Think Money work with a panel of lenders to offer a range of loans. If you are thinking about getting a loan, contact one of our expert loan advisers today.Thu, 13 Nov 2008 08:58:28 -0800
The unemployment rate rose to 5.8% in the three months to September 2008, an increase of 0.4% on the previous quarter, and 0.5% over the year.
In numbers, that`s an increase of 140, 000 on the previous quarter and 182, 000 over the year. In total, 1.82 million people are now unemployed – the highest number since the three months to December 1997, when it reached 1.87 million.
"The thought of becoming unemployed is a worrying prospect for anyone, but it can be particularly nerve-racking for people in debt. Everyone has bills to pay and expenses to meet, but people in debt also have debt repayments on top of all that – and they know that failure to stay on top of those debt payments could rapidly make a bad situation worse."
According to recent figures from the Liberal Democrats, Britain`s personal debt is over £1.4 trillion, and annual debt repayments now total almost £95 billion per year.
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Think Money offer a range of debt solutions, including debt management, debt consolidation loans and IVAs (Individual Voluntary Arrangements). If you are worried about your debt, contact one of our expert debt advisers today.Tue, 11 Nov 2008 03:19:27 -0800
The so-called iPod (insecure, pressurised, overdrawn and debt-ridden) generation, which comprises anyone under the age of 35, is being hit particularly hard by the ongoing financial problems, it has been suggested.
According to independent financial adviser Mark Dampier of Hargreaves Lansdown, this demographic is more reliant than others on borrowing, the Times reports.
He said: "Young adults are in a difficult position. They have been lulled into a false sense of security by banks and have been encouraged to borrow so much for so long."
The expert went on to say that in the context of an economic downturn marked by a sharp decline in lending, it is "inevitable" that such people will suffer.
Meanwhile, the Times points out that younger workers are also likely to be the most affected by rising unemployment, as firms tend to operate a "last in, first out" policy when making staff members redundant.
Recently, Charles Davis, economist at the Centre for Economic and Business Research, said that in order to return to a more stable position, the UK needs to reach a situation where consumers are less reliant on loans and credit.

Mon, 10 Nov 2008 03:23:49 -0800
Despite an initial reluctance from the UK`s major lenders, the majority have now passed on the recent interest rate cut to their customers.
There were fears that the 1.5 per cent fall in the base rate, which was announced last week by the Bank of England`s monetary policy committee, would not be translated into better deals for consumers.
However, in a meeting, chancellor Alistair Darling put pressure on the leaders of the country`s major banks, and several leading lenders have since announced cuts to their mortgage rates.
Lloyds TSB, Abbey, the Royal Bank of Scotland and HBOS were among those who revealed they would be passing on the reductions in full to customers with variable mortgages.
The news may be welcomed by consumers who are falling into arrears with their home loans and who are facing the threat of repossession.
According to figures produced recently by the Financial Services Authority, the number of homes being repossessed in Britain rose by 71 per cent during the second quarter of this year.

Mon, 10 Nov 2008 03:20:48 -0800
Due to the high cost of living in Britain, many consumers are currently unable to build up savings, an expert has said.
Steve Folkard of AXA said that some people do not have any money left to put away - potentially safeguarding them from future financial problems and debt - once they have covered their household bills and expenditure.
However, he added that consumers should not assume it is impossible to save in the first place as doing so can be rewarding.
He went on to advise: "Spend one hour per month - or just fifteen minutes a week - planning and reviewing your finances."
Research conducted by AXA last month found that more than 20 million households have been eating into their savings since the turn of the year and that only those who earn more than £52, 785 after taxes and benefits are deducted have avoided spending beyond their means.

Mon, 10 Nov 2008 03:18:23 -0800
Due to their reluctance to swap energy providers, pensioners are paying over the odds for their gas and electricity, it has been suggested.
According to research conducted by Age Concern, there has been no increase in the number of consumers switching providers despite the significant hikes in price seen over recent months.
It stated that only around one in five customers have changed their utilities company this year, while seven out of ten households say they are unlikely to even consider making a change.
The charity added that retirees are put at a greater disadvantage because of lack of access to online deals, making them more likely to be in fuel poverty and hence suffer problems with their personal finances.
"Pensioners are the most likely group to be fuel poor, yet are less likely to switch supplier or have access to cheap online deals and many pay higher rates because they pay by cash or cheque, " stated Age Concern director general Gordon Lishman.
Meanwhile, figures produced recently by Abbey Credit Cards suggested that one in ten consumers are spending 90 per cent of their salaries on essentials such as rent and bills.
