Current Feed Content from 12 Oct 08 14:39
US financial âbailoutâ approved
Thu, 09 Oct 2008 08:58:51 PDTPassed by the US House of Representatives on the second attempt, the US âbailoutâ legislation was signed into law by the President on October 3rd.
The law allows the US Treasury to spend up to $700 billion on âtroubled assetsâ â such as so-called âtoxicâ mortgage debts â which should help lenders grant the mortgages, loans and other forms of credit on which the economy depends.
As reported on CNNâs website, Federal Reserve Chairman Ben Bernanke welcomed the news: âThe legislation is a critical step toward stabilizing our financial markets and ensuring an uninterrupted flow of credit to households and businesses.â
In a radio speech, Mr. Bush told listeners that âWith this legislation, the Federal government can help banks and other financial institutions resume lending. This will allow them to continue providing the capital that is essential to creating jobs, financing college educations, and helping American families meet their daily needs.â
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Thinkmoney.com provides free, expert debt advice, along with a comprehensive range of financial solutions, from debt management plans to loans and remortgages.Falling oil prices offer some hope
Thu, 09 Oct 2008 09:32:31 PDTThe price of oil has dropped to an eight-month low, below $90 a barrel, according to the BBC, which states that âLondon Brent crude fell $6.57 to $83.68â. Analysts have pointed out that the financial problems in the US and Europe are threatening a global economic slowdown which could reduce the demand for oil.
Whatever the reasons, motorists everywhere will be hoping that falling wholesale prices will translate into lower prices on the forecourt.
âPetrol is just one of many essential costs which have risen in recent months, â said a spokesperson for Think Money. âMany borrowers are finding it harder and harder to stretch their monthly budget to cover their expenses as well as maintaining their debt repayments.â
âSo even the modest falls in petrol prices weâve seen recently have come as a great relief. Prices are still high, but motorists will be relieved theyâre not still climbing â and theyâll obviously be hoping they come down further.â
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Think Money provide a range of debt solutions, including debt management plans, debt consolidation and IVAs (Individual Voluntary Arrangements). If you are struggling with debt, contact one of our expert debt advisers now.Bank accounts â individualsâ savings protected
Thu, 09 Oct 2008 17:55:00 PDTAs of today, 7th October 2008, the first £50, 000 of an individualâs savings will be protected, even if the bank becomes insolvent.
This protection is ensured by the Financial Services Compensation Scheme, whose website states: âThe Financial Services Compensation Scheme (FSCS) is the UKâs statutory fund of last resort for customers of authorised financial services firms. This means that FSCS can pay compensation if a firm is unable, or likely to be unable, to pay claims against it.â
Previously, the limit had been £35, 000, but the increase provides greater security to savers in the UK, who may be worried about the impact on their savings of the current troubles in the banking industry.
âAt a time like this, â a spokesperson for Think Money commented, âmany people are clearly worried about their financial security. Itâs a huge relief to know that their savings in the bank are safe.â
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Thinkmoney.com provide free, expert advice, along with a comprehensive range of financial solutions, from managed bank accounts to loans and remortgages
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Financial Services Compensation SchemeLow-deposit mortgages: âonly 60 leftâ
Thu, 09 Oct 2008 00:00:00 PDTThe number of mortgages available to buyers with a 5% deposit has significantly reduced in recent months, as the credit crunch continues to limit mortgage and loan availability, according to the BBC.
According to Moneyfacts, only 60 such mortgage deals are still available in the UK. This is in stark contrast with the days of 100% mortgages and even 125% mortgages, in which many homeowners relied on an increase in the value of their home to cover the mortgage.
At the start of April, there were 384 mortgage deals available to people with a 5% deposit, and 860 a year ago, says the BBC. A spokesperson for Think Money said: âWould-be homebuyers without a significant deposit are often finding themselves unable to find a mortgage.
âBut these figures show that there are deals still available, so we advise anyone looking for a mortgage with a low deposit to talk to an expert now and avoid disappointment later on.â ---
Think Money offer mortgages to suit people in various financial situations. If youâre looking to take out a mortgage, contact one of our expert mortgage advisers today.Bank bailout âwill not aid all of mortgage marketâ
Thu, 09 Oct 2008 11:12:19 PDTExperts believe that the new £50bn British bank bailout may not help first-time buyers, as lenders look to fill their balance sheets with âlower-riskâ customers, it has emerged.
Speaking to The Telegraph, Ray Boulger at mortgage experts John Charcol said: âAt least banks will have access to funding, but they will want to have lower-risk customers on their balance sheets â and this means buyers with sizeable deposits.â
Some commentators believe that Thursdayâs expected cut in the Bank of Englandâs base rate will not be passed on to all customers, according to The Telegraph. Homeowners on a tracker mortgage will automatically benefit, but those paying their lenderâs SVR (Standard Variable Rate) will have to wait and see how their lender reacts. A spokesperson for Think Money said: âLast time the base rate was lowered, few lenders immediately followed suit with their own mortgage rates, due to the uncertainty in the market at the time â and it is possible that it will be the same this time around.
âMortgages are still very much available and will continue to be, but only tracker mortgages are guaranteed to show the benefits of a base rate cut.â
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Think Money offer a range of mortgages for people in various financial situations. If you are looking for a mortgage, contact one of our expert mortgage advisers today.`Not surprising` loans are becoming more expensive
Thu, 09 Oct 2008 04:42:04 PDTGiven the fact that the credit crunch was precipitated by bad debt, it is not surprising that cheap credit is drying up, it has been suggested.
Writing in the Manchester Evening News, David Ottewell stated that many banks are now restricting their best borrowing rates to people who have "impeccable" credit histories, rather than those with bad credit ratings.
He said: "The flood of cheap credit that has washed over Britain in the last decade is finally drying up."
According to Mr Ottewell, consumers can expect to pay an average of around nine per cent interest on loans now, compared to less than six per cent a year and a half ago.
Meanwhile, credit card firms are also limiting their lending and are watching more carefully for signs that customers are struggling to make their repayments.
Figures produced earlier this month by the Bank of England suggested that lenders reduced the availability of secured credit to households in the three-month period ending in September by more than they had anticipated they would when questioned beforehand.
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Think Money offer a range of loans to suit various financial situations. If you are thinking about taking out a loan, contact one of our expert advisers now
Bank of England makes loans more available
Wed, 08 Oct 2008 09:32:56 PDTThe Bank of England (BoE) will accept more kinds of collateral from financial institutions in return for loans, it has announced.
Under normal circumstances, the BoE has strict rules about the kind of assets it accepts as collateral for loans to institutions. According to the Daily Mail, it would âonly accept the best quality mortgage assets as security in return for financial helpâ.
Now, however, these rules have been relaxed to some extent, helping banks â and therefore also helping consumers.
As Bloomberg reports, the Bank will now accept âtop-rated securities tied to âsomeâ corporate and consumer loans at its weekly auctionâ, basically helping financial institutions by making it easier for them to access loans.
In the words of Bank of England governor Mervyn King: âIn these extraordinary market conditions, the Bank of England will take all actions necessary to ensure that the banking system has access to sufficient liquidity.â
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Think Money offer a range of loans to suit people in different financial situations. If you are considering getting a loan, contact one of our loan advisers now.Watchdog calls for fair energy bills
Wed, 08 Oct 2008 09:56:46 PDTOfgem, the energy regulator, has instructed energy companies to stop charging customers more because they pay by pre-payment meters rather than direct debit.
Acknowledging that âcompetition could not stop rising prices of oil and coal from pushing up billsâ, the regulator nonetheless said that âenergy firms could do more to make sure that all customers were able to access the best tariffsâ, the BBC reports.
Although Ofgem reported that most customers were well served by the energy market, it also told power companies they needed to ensure that all customers enjoyed the benefits of competition. Many people who pay with pre-payment meters do so because of debt problems. According to the Energy Retail Association: âCustomers who are in debt are placed on a pre-payment option, if other payment options are not suitable.â
Already in debt, many people with pre-payment meters can be hit particularly hard â and driven further into debt â by any extra expense.
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Think Money provide a range of debt solutions, including debt management plans, debt consolidation, IVAs (Individual Voluntary Arrangements) and Trust Deeds. If you are struggling with debt, contact one of our expert debt advisers now.Failing to plan for retirement `will cause financial problems`
Wed, 08 Oct 2008 04:20:21 PDTPeople could be leaving themselves vulnerable to personal finance problems - potentially including debt - by failing to plan for retirement, an expert has said.
Malcolm Cuthbert, managing director of financial planning at Killik & Co, said that it is crucial for consumers to plan for their post-work years.
According to research conducted by the firm, 60 per cent of people with a pension fund do not know how much they have in it, while 78 per cent lack any kind of a pension strategy.
Meanwhile, half of those questioned never check the performance of their pension investments.
Mr Cuthbert said: "It`s more important than ever before that people take responsibility for themselves and I think that imagining that this problem is going to go away or any of the other excuses people come up with is just crazy."
He also said that the UK is in the "death throes" of the final salary pension scheme and value of the state pension has been eroded.
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Think Money provide a range of debt solutions, including debt management plans, debt consolidation, IVAs (Individual Voluntary Arrangements) and Trust Deeds. If you are struggling with debt, contact one of our expert debt advisers now.
Fewer homeowners withdrawing equity
Tue, 07 Oct 2008 10:20:11 PDTThe uncertainty surrounding the housing and mortgage markets has meant that fewer homeowners are relying on equity tied up in the value of their homes as a source of funds, recent figures have shown.
The figures from the Bank of England showed that households had collectively paid £2.8bn into their homes in the April-to-June quarter, the first ânegative withdrawalâ reading since 1998.
In comparison, people took £5.2bn from their homes in the first quarter of 2008, and about £10bn between April and June 2007, according to the BBC.
The rapid rise in house prices in the decade leading up to 2007 had made it easy for homeowners to withdraw from their increased equity. But the recent falls have meant that this is no longer a viable option for many mortgage holders.
Speaking to the BBC, Howard Archer at Global Insight said: âHigher mortgage rates, markedly tighter credit conditions and falling house prices have increasingly reduced the attractiveness of, and scope for, housing equity withdrawal.
âThis reinforces our belief that we are in for an extended period of serious consumer retrenchment.â
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Think Money offer a range of mortgages to suit people in various financial situations. If you are considering taking out a mortgage or remortgage, contact one of our expert advisers.Loan rates on the rise, figures suggest
Tue, 07 Oct 2008 04:31:25 PDTThe amount charged by a number of major UK loan providers has increased significantly in recent weeks.
This is according to figures produced by uSwitch.com, which found that eight companies have increased unsecured personal loan rates by as much as nine per cent over the last 28 days.
It found that Black Horse has raised its rates by up to nine per cent, while the Bank of Ireland has hiked its prices up from 8.9 APR to 10.7 APR.
Meanwhile, Lloyds TSB and Marks and Spencer have both increased the rates they charge on unsecured loans by one per cent.
The figures could make unwelcome reading for consumers struggling with high levels of debt.
"As the news agenda overflows with the global financial meltdown, a plethora of loan rate increases have been implemented in the past four weeks, " stated Louise Bond, personal finance manager at uSwitch.com.
Recently, the Bank of England revealed that lenders reduced the availability of secured loans to households in the three-month period ending in September by more than they had anticipated they would when questioned in the previous quarter.
Interest rates `could fall to 3.25% in 2009`
Tue, 07 Oct 2008 04:30:21 PDTThe base rate of interest in the UK could fall to as low as 3.25 per cent in 2009, an expert has said.
In news that may be welcomed by consumers experiencing high mortgage repayments and interest rates on other forms of loan, Howard Archer, chief European and UK economist at Global Insight, said that he believes the Bank of England (BoE) could significantly reduce interest rates over the period.
He said: "Rates could well be down to 4.5 per cent by the end of this year and then down to 3.25 per cent next year."
Mr Archer also expressed a belief that the interest rate, which currently stands at five per cent, will be cut next month.
Meanwhile, in a recent poll of 12 economists, seven predicted that rates will be cut when the BoE`s monetary policy committee meets on Thursday (Oct 9th), while five said it will opt to hold.
Scottish retirement debt `on the rise`
Tue, 07 Oct 2008 04:29:07 PDTRetirees in Scotland are subject to greater levels of debt than they were four years ago, it has been suggested.
According to a report by Citizens Advice Scotland (CAS), people aged 60 and over are 25 per cent more indebted than was the case in 2004.
The charity also found that, among the individuals who use its services, the average amount of money owed is now £17, 767, although a quarter have debt exceeding £25, 000.
Commenting on the issue, CAS chief executive Kaliani Lyle said: "It is important that older people ensure that they are claiming all the benefits they are entitled to, but we also need to see more responsible lending from creditors, taking fully into account a client`s situation and level of income."
She added that debt can become a significant source of stress for people who cannot see a way out of it.
During a recent seminar, the Life Trust Foundation warned that as people continue to live for longer in the UK, more must be done to avoid personal finance problems for retirees.
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Think Money offer free debt advice, and a range of debt solutions, from debt management plans to Trust Deeds.
Pensioners advised to remortgage equity release deals
Tue, 07 Oct 2008 04:27:55 PDTPensioners in the UK who have released equity from their homes over the last five years or more may be missing out if they fail to seek more competitive deals, it has been suggested.
According to Key Retirement Solutions, such people could save thousands of pounds by remortgaging.
This news may be of particular interest to consumers struggling with their personal finances in the light of current economic problems.
"For most consumers an equity release plan is something they expect to have for the rest of their lives so it is important not to forget that there may be better rates available through the term from alternative lenders, " stated Dean Mirfin, business development director at Key Retirement Solutions.
He added that people considering remortgaging should seek the opinion of a specialist advisor who can determine the best available rates.
Recently, David Black, principal consultant of banking at Defaqto, described equity release as a feasible option for struggling pensioners.
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Think Money offer a range of mortgages to suit people in various financial situations. If you are looking for a mortgage, contact one of our expert mortgage advisers now.
Availability of loans shrinks in three months to September
Mon, 06 Oct 2008 02:52:52 PDTThe availability of loans and other types of credit has shrunk in the third quarter of 2008, according to the Bank of England (BoE).
In its latest Credit Conditions Survey, the BoE reveals that âLenders reported that they had reduced the availability of secured credit to households [such as secured loans and mortgages] in the three months to mid-September by more than they had anticipated in the Q2 surveyâ.
However, the availability of unsecured credit (unsecured loans, credit cards, etc.), although down, was reduced âin line with expectations three months agoâ.
âThe figures underline the importance of talking to the right lender, â said a spokesperson for Think Money. âCredit is still available, but people need to think carefully before applying, and approach a lender who specialises in loans for people in their financial situation.â
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Think Money offer a range of secured loans and unsecured loans to suit people in different financial situations. If you are considering taking out a loan, contact one of our loan advisers now.Tesco and Virgin to offer mortgages?
Mon, 06 Oct 2008 04:11:30 PDTSupermarket giant Tesco and Richard Branson`s Virgin Group are both looking to move into the mortgage market, it has been revealed.
In news which may be of interest to consumers seeking a home loan or to remortgage their property, both organisations have said that now is a good time to enter the field, Utalkmarketing reports.
According to the news source, Tesco told Adage.com that it is to begin offering checking accounts within a year and that mortgages will follow "in due course".
Meanwhile, Branson revealed he is seeking to launch a Virgin mortgage product because consumers are currently facing a lack of choice.
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Looking for a mortgage? Donât hesitate to contact one of our expert advisers.
Third of pensioners `left facing mortgage debt`
Mon, 06 Oct 2008 04:09:16 PDTOne in three UK pensioners is left with a mortgage debt after giving up work, it has been revealed.
According to figures produced by impartial.co.uk, on average, a homeowner aged 55 still owes £55, 046 to their banks and has 7.8 years left on their home loan.
The average monthly repayment being made by such people is identified as standing at £725.
It was also found that homeowners aged between 35 and 55 typically owe £92, 153 repayable over 13.4 years.
Commenting on the figures, Karen Barrett, marketing director of impartial.co.uk, said: "It is crucial that the next generation of homeowners do all that they can to be debt free earlier - as this will give them much more financial freedom to prepare for retirement."
Meanwhile, the Life Trust Foundation recently warned that as people continue to live for longer in the UK, there is an increased risk of pensioners facing debt problems.
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Think Money offer a range of mortgages to suit people in various financial situations. If you are looking for mortgage advice, contact one of our expert mortgage advisers now.
`Opinion divided` over interest rate decision
Mon, 06 Oct 2008 04:08:03 PDTThere is no consensus of opinion as to what the Bank of England`s monetary policy committee will do when it meets to decide what the UK base rate of interest will be on Thursday (Oct 9th).
In a recent poll of 12 economists, seven predicted that rates will be cut - a move which may be welcomed by consumers facing personal finance problems as a result of rising inflation and high debt repayment levels.
However, five of the experts reported a belief that the committee will choose to hold the rate of interest at its current level of five per cent.
Richard Dodd, head of media and campaigns at the British Retail Consortium, stated: "We expect to see no change but we hope we are wrong and would like to see a quarter point cut."
Meanwhile, Paul Dales, UK economist at Capital Economics, commented: "No change ... though it will be very close."
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Think Money offer a range of debt solutions, including debt management plans, debt consolidation and Trust Deeds. If you are worried about debt, contact one of our expert debt advisers now.
US Senate passes bill addressing mortgage debt
Fri, 03 Oct 2008 09:17:47 PDTA revised âfinancial bail-outâ, passed by the US Senate, still has to be approved by the House of Representatives, which rejected a similar bill on Monday.
The revised bill still focuses on a proposed âbail-outâ of financial institutions â allowing the US government to spend approximately $700 billion buying up âtoxicâ mortgage debts and other âtroubled assetsâ.
The aim is to free up banks to lend more and restore confidence in financial markets, potentially ending (or at least alleviating) the credit crunch.
But the bill is deeply unpopular among American voters, which may lead many in the House of Representatives to reject the new version, as they did the initial bill.
Politicians, however, are warning that failure to pass the bill could have a severe negative impact on people all over the world â not just US citizens, and not just people currently looking for mortgages and other loans.
In the words of Democratic presidential candidate Barack Obama, as reported on CNNâs website: âwe canât afford to take a risk that the economy of the United States of America and, as a consequence, the worldwide economy could be plunged into a very, very deep hole.â
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Think Money offer a range of mortgages to suit people in all kinds of financial situations. If you are considering taking out a mortgage, contact one of our expert mortgage advisers.House prices fall in September
Fri, 03 Oct 2008 09:43:59 PDTThe price of a typical house fell by 1.7% in September, to £161, 797, according to Nationwide Building Society.
For people in debt, this fall potentially limits their choice of debt solutions.
âBorrowers thinking about consolidating their debts by remortgaging will need to think very carefully about the amount of equity in their property, and talk to an expert debt adviser about their options, â said a spokesperson for Think Money.
âThere are still plenty of homeowners with substantial levels of equity in their property, but the current downward trend is clearly reducing those levels.
âAt a time like this, with house prices declining and credit less available than it used to be, people with debt problems should consider all available debt solutions, including debt management plans and IVAs (Individual Voluntary Arrangements). Again, the key thing is to talk to a debt specialist who can provide expert advice on the pros and cons of each debt solution.â
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Think Money provide a range of debt solutions, including debt management plans, debt consolidation and IVAs (Individual Voluntary Arrangements). If you are struggling with debt, contact one of our expert debt advisers now.
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