http://www.agentcities.org Finance and Mortgage News Thu, 15 May 2008 04:00:00 +0000 http://wordpress.org/?v=2.2.3 en http://www.agentcities.org/00000292-mortgage-seekers-told-not-to-expect-any-perks.html http://www.agentcities.org/00000292-mortgage-seekers-told-not-to-expect-any-perks.html#comments Thu, 15 May 2008 04:00:00 +0000 admin tag:test.epiphanysolutions.co.uk://d2bfafd24a5e8844cc952c67beb2fcbe
According to Darren Cook, head of mortgages at Moneyfacts, lenders have rarely offered add-ons to their mortgage products and are less likely to do so in the current financial environment.

He stressed that buyers should focus on how suitable the product on offer to them is, rather than considering a deal based on the additional benefits they could get.

"Within the mortgage market [perks] are few and far between. If you look at the mortgage in its entirety, you need to look at whether that product is suitable for the individual," Mr Cook said.

He went on to add that the market situation had reversed over the last six months, with consumers now having to find a bank that is willing to lend to them whereas previously banks went out to look for business.

Last week, Lloyds TSB launched its Airmiles mortgage, a product which gives customers the ability to earn 6,000 airmiles up front and 50 for every monthly payment they make.
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Credit Action director Chris Tapp said that the use of borrowed funds such as loans or credit cards makes sense in the short-term but continued use could see people fall into unmanageable levels of debt.

He used examples such as utility bills and food as areas where people may need extra funds to cover the rising costs, but urged caution in doing so.

"It may be a reasonable option in the short-term, but people have to be very careful they dont find themselves overly reliant on credit which is unsustainable in the long run and can lead to people getting in real difficulty," he said.

Credit Action was established in 1994 and aims to help people manage their finances better, through a combination of advice and training.
]]> http://www.agentcities.org/00000291-consumers-warned-over-using-credit-for-household-expenditure.html/feed http://www.agentcities.org/00000290-use-of-mortgage-intermediaries-increases.html http://www.agentcities.org/00000290-use-of-mortgage-intermediaries-increases.html#comments Thu, 15 May 2008 04:00:00 +0000 admin tag:test.epiphanysolutions.co.uk://a41c48b33c1960e129be799f61b251b5
According to the Council of Mortgage Lenders (CML), in the first quarter of 2008, more than 82.5 per cent of first-timers used the services of an agent, an increase of ten per cent on the same period in 2007.

In addition, 79 per cent of all remortgages involved intermediaries, which is also a ten per cent increase on the corresponding time period last year.

Richard Farr, director of the Association of Mortgage Intermediaries, said that in the current financial climate, seeking advice regarding a major transaction such as a mortgage was wise and that people trusted the opinions of brokers, more so than those of the provider.

"Mortgage intermediaries are playing a vital role in the current market place as first-time buyers struggle to find a mortgage deal. Consumers clearly value the advice they receive from mortgage brokers," he said.

The CML recently reported that mortgage lending in March was nearly 50 per cent lower than in the same month last year.
]]> http://www.agentcities.org/00000290-use-of-mortgage-intermediaries-increases.html/feed http://www.agentcities.org/00000289-internet-used-more-by-credit-card-customers.html http://www.agentcities.org/00000289-internet-used-more-by-credit-card-customers.html#comments Wed, 14 May 2008 04:00:00 +0000 admin tag:test.epiphanysolutions.co.uk://4ec78c98f44a4a7ca106fa7c28a9b86e
Figures from Global Reviews show that the internet is now the favourite source to look at and manage credit cards, with 64 per cent of customers opting to use it when applying for a new card, reports the Thrifty Scot.

An additional 68 per cent use the medium to manage their account, including checking and paying bills.

One official has told the website that the quality of these sites is not up to scratch and needed improvement.

"With so many customers going online, providers wanting to attract these customers need to make sure that their website offers the information customers are looking for. All the online applications we looked at could be significantly improved," he said.

He added that as household budgets tighten many people will look around for a better deal.

Recent figures from the banking industry revealed that online credit card fraud has increased by 37 per cent since last year, reaching £290.5 million.
]]> http://www.agentcities.org/00000289-internet-used-more-by-credit-card-customers.html/feed http://www.agentcities.org/00000288-actions-of-credit-card-companies-called-into-question.html http://www.agentcities.org/00000288-actions-of-credit-card-companies-called-into-question.html#comments Tue, 13 May 2008 04:00:00 +0000 admin tag:test.epiphanysolutions.co.uk://14cc4588182716da9cebf4b96f0c618c
Research from uSwitch.com has found that 1.6 million consumers have had their credit limit cut by their provider, while 1.3 million have had their account closed or been told they must pay a set charge each year.

Of those surveyed, a quarter were told the decision was down to their poor credit rating and 27 per cent were not given any reason at all.

More than 50 per cent of those affected were using their card on a regular basis and making the minimum payment, while 20 per cent used it habitually and paid the balance off each month.

Just 16 per cent of respondents exceeded their limits or missed a repayment.

Simeon Linstead, head of personal finance at the price comparison site, said that lenders should explain why customers are on the receiving end of these measures.

"Credit card companies who are taking action to close down or make changes to customers accounts must be completely open about how and why they have selected those customers," he said.

Fool.co.uk recently stated that credit card companies should help customers through difficult times instead of placing more charges on their products.
]]> http://www.agentcities.org/00000288-actions-of-credit-card-companies-called-into-question.html/feed http://www.agentcities.org/00000287-overdraft-charges-are-increased.html http://www.agentcities.org/00000287-overdraft-charges-are-increased.html#comments Tue, 13 May 2008 04:00:00 +0000 admin tag:test.epiphanysolutions.co.uk://81f844c35d471a75ef1f88ab5a247266
According to Moneyfacts.co.uk some lenders have cut their rates by up to 1.75 per cent while others have increased them.

Michelle Slade, analyst at the price comparison site, believes that consumers are being targeted at a time when they can least afford it.

She went on to add that it may be a case of banks making the first move in anticipation of losing the battle being brought against them by the Office of Fair Trading.

"This is really disappointing news for current account customers. It could well be that banks and building societies are pre-empting a reduction in overdraft fees when the OFT case is finally settled," Ms Slade added.

Nationwide became the latest lender to charge its customers higher interest rates on overdrafts, after announcing an increase of three per cent.
]]> http://www.agentcities.org/00000287-overdraft-charges-are-increased.html/feed http://www.agentcities.org/00000286-credit-action-adverts-for-loans-and-credit-cards-breach-rules.html http://www.agentcities.org/00000286-credit-action-adverts-for-loans-and-credit-cards-breach-rules.html#comments Mon, 12 May 2008 04:00:00 +0000 admin tag:test.epiphanysolutions.co.uk://b080ee5de7613213d360b6c42206a63a
According to debt charity Credit Action, some of the promotions being advertised do not comply with the Office of Fair Tradings rules.

The concern centres on issues such as the fact that most of the offers of finance, secured against a consumers car or salary, do not include the annual percentage rate of the interest that would be charged or the name of the firm making the offer.

Industry rules require companies to reveal the rate if they claim their product is better value than that of a competitor or if the advertisement offers a payment-free period.

Malcolm Hurlston, the chief executive of the charity, told the Guardian that the rules must be enforced to protect customers.

"These are the day-to-day realities of the credit crunch - creditors thinking up new ways of offering the young and the less well-off the credit they need. We must be sure that such creative products concur with existing rules and regulations," he said.

Facebook is a social networking site allowing people to contact friends and share photographs
]]> http://www.agentcities.org/00000286-credit-action-adverts-for-loans-and-credit-cards-breach-rules.html/feed http://www.agentcities.org/00000285-northern-rock-reports-increase-in-arrears.html http://www.agentcities.org/00000285-northern-rock-reports-increase-in-arrears.html#comments Mon, 12 May 2008 04:00:00 +0000 admin tag:test.epiphanysolutions.co.uk://28a7d2c272bb51247615ffc104730b8d
The nationalised lender cited the current economic turbulence coupled with a diminishing loan book for the figure, which stood at 0.57 per cent at the end of December.

Ron Sandler, executive chairman of the bank, said that it was still in line to meet its targets of repaying the loan it received from the Bank of England.

"We remain firmly focused on our business priorities of repaying the Government debt, releasing the guarantee arrangements and, in due course, returning Northern Rock to private ownership," he said.

Part of the companys strategy to reduce its debt was to ask its customers to transfer their mortgage to another provider once it has expired, something which has been made more difficult given the current financial climate, Mr Sandler said.

Northern Rock was temporarily nationalised in February, the first case of such action since the 1970s.
]]> http://www.agentcities.org/00000285-northern-rock-reports-increase-in-arrears.html/feed http://www.agentcities.org/00000284-firstrung-lack-of-affordable-mortgages-responsible-for-repossession-numbers.html http://www.agentcities.org/00000284-firstrung-lack-of-affordable-mortgages-responsible-for-repossession-numbers.html#comments Mon, 12 May 2008 04:00:00 +0000 admin tag:test.epiphanysolutions.co.uk://158ce6ba5aa3ff8a97dfa8762ba5e0f1
Paul Holmes, operations director at Firstrung, has claimed that the recent figures released by the Ministry of Justice, showing that repossessions in the UK have increased, is due to the fact that mortgage lenders have removed many of their products from the market.

This has led to people coming off their existing deals and onto packages that they cannot afford, therefore leading to them eventually losing their homes.

"Its simply affordability. Now people are coming off those teaser rates they are finding that their payments are ballooning by up to 25 to 35 per cent in some instances," Mr Holmes said.

The MoJ recently revealed that there were 38,688 repossession claims in the first quarter of 2008, compared to 33,344 in the same period in 2007.
]]> http://www.agentcities.org/00000284-firstrung-lack-of-affordable-mortgages-responsible-for-repossession-numbers.html/feed http://www.agentcities.org/00000283-banks-criticised-over-current-account-charges.html http://www.agentcities.org/00000283-banks-criticised-over-current-account-charges.html#comments Fri, 09 May 2008 04:00:00 +0000 admin tag:test.epiphanysolutions.co.uk://0c452deafacc4918db4978a6084e609b
Packaged accounts, which are those most affected by the move, charge flat monthly fees but come with a range of incentives such as free travel insurance.

Lloyds has increased the monthly price for its Gold and Platinum accounts to £12 and £17 respectively, while the Royal Bank of Scotland has raised the fee for its RBS Royalties Gold and NatWest Advantage accounts to £12.95.

In response to the move, Kevin Mountford, head of moneysupermarket.com, told the Daily Express that free banking could soon become a thing of the past.

"There is a genuine fear that we will see the end of free banking in the UK. Instead we will see pricing structures similar to those in other developed countries - fees aligned to transactions," he said.

Consumers in the US and the majority of Europe have to pay for their banking services.
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