Deutsche Bank and Oppenheimer & Co have cut their growth predictions, although most analysts agree the market will still increase, albeit at a slower rate.

Deutcshe Bank now says sales will climb 6.1 per cent to 1.22 billion phones in total this year – down on earlier estimates of 8.1 per cent.

Writing in a report, Brian Modoff and Jonathan Goldberg at Deutsche Bank said: “We think consumers globally are stretching out their phone replacements, holding off on purchases to pay for gas or food or the mortgage. Conditions are just going to get tougher for the industry over the forthcoming year.”

They also added their own view on how to deal with problems facing the handset sector, saying: “Driving to work last week, we passed a warehouse on fire, sending up a thick plume of black smoke.

“The thought occurred to us that there has to be a better way to get rid of excess inventory, but judging from the state of the wireless handset industry, maybe there isn’t.”

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The results show that 21% of brokers felt that the recent media focus and regulatory investigations partly had some impact on sales and 15% reported no effects on the selling of MPPI.

The survey also points out that having the choice to receive advice on household and buildings insurance as well as mortgage insurance is also considered as important by brokers and their clients.
49% of brokers reported that being able to sell household insurance, buildings and contents insurance in conjunction with MPPI was “extremely important”.

26% of respondents said that having this option was “very important”, 16% highlighted that it was “important”, 5% reported that this was “fairly important” and only 4% said that having this option “was not important”.

The online survey also highlighted that 97% of respondents felt that being able to offer customers payment facilities allowing them to spread monthly repayment over 12 months was “important”, while only 3% considered that it was not important.

With regards to the payment of commissions, the majority of brokers (44%) said that whether their commissions were paid monthly or annually in advance was not important while 33% said that they preferred annual in advance payments and 23% reported that they favoured being on a monthly drip.

The GI survey was launched by TMA in order to gather feedback and views on the current market in terms of both household and MPPI.

The survey results gathered will highlight any worries, opportunities or trends in the market which TMA will look to operate in.

Phil Whitehouse, head of TMA, said: “This survey conjured up some very interesting points and certainly helped us garner a better understanding of what brokers are looking for to get the most out of this important sector of the market. A good mortgage club should offer brokers added value in order to help them increase sales/income and, at TMA, we will certainly be looking at elements from this survey to bring a strong proposition to the market that will be of true benefit to our members.”

John Harrop, national sales manager at Cardif Pinnacle, added: “At Cardif Pinnacle, we are constantly reviewing and updating our products, and the survey has proved invaluable in obtaining feedback from the people who actually sell the products at point of sale. The information gained from the survey will provide a framework for future product development.”

The market should not have too many concerns those as most of their existing business is driven by contract renewals, a monthly cost most Brits see as a necessary expense these days. The leading network providers like 3 mobile, Orange and Vodafone will need to ensure they work even harder to drive value into their offerings and give people reasons to change their handset.

Customers who open a Plus account before July 13th will receive six per cent AER (5.84 per cent gross variable) on balances as high as £2,500.

To qualify for the account customers need to deposit at least £1,000 a month and after 12 months the bank will offer a competitive four per cent AER.

Those without the £1,000 a month required to qualify will have to make do with a standard current account, which offers 0.1 per cent AER.

Catherine McGrath, director of current accounts, Lloyds TSB, said: “While many of our competitors are cutting the interest they pay to customers on their current accounts, were bucking the trend offering one of the best deals on the market.”

“By upping the interest we pay on our Plus accounts everyone will be able to make the most of their current account balance.”

Alliance & Leicesters Premier Direct current account and Abbeys Preferred In Credit Option account offer more interest than Lloyds new Plus account, but they both expect a minimum monthly deposit to qualify.

Plan Insure states that that due to the credit crunch fewer people are willing to part with the extra money it costs each month to have a life insurance plan in place.

“It doesnt surprise me that, because of the difficulties people are facing, this problem has become more severe. But it is a risky strategy, for all sorts of reasons,” Simon Firmin, life and pensions adviser for the company, says.

He adds that life cover is “vital” as without it people will struggle to cope with potential difficulties.

Mr Firmin continued to say that there is also an increasing number of borrowers opting for basic life cover rather than full protection.

Recent research from My Mortgage Direct found that only one in five borrowers are signing up for life assurance along with their new mortgage deal, with many citing financial difficulties as the reason they have not taken out cover.

In related news, the Times has reported that an increasing number of homeowners are opting to take mortgage holidays as they are having trouble making their repayments.

Economists had not been expecting a cut, despite the need to boost the economy and stop the restrictions on mortgage lending, due to the recent jump in inflation.

Henk Potts, equity strategist at Barclays Stockbrokers, said: “The Monetary Policy Committee finds itself in the middle of a difficult balancing act, involving rising inflation on one side and slowing economic growth on the other.

“There is no doubt that UK economic growth is moderating.”

In a further blow to homeowners or those looking to take out a mortgage, the interest rate announcement came as Halifax revealed house prices have fallen by 2.4 per cent in May.

The average house price is now £184,111.

It was the second biggest fall on record, with house prices declining by 2.5 per cent in March this year.

James Jones, the consumer education manager at Experian, said that as loans are becoming increasingly difficult to get hold of, consumers need to take steps to maximise their chance of having an application accepted.

He added that lenders often rely on credit histories to help decide whether or not they accept somebodys application, which is why he advises that people should check their information is up-to-date.

Mr Jones added that lenders are also using credit histories to help determine what rates of interest they should charge people.

“Clever consumers are checking their credit reports to make sure that all the information is correct,” he concluded.

Recent research from CreditExpert.co.uk highlighted that many would-be borrowers are not confident that they would be given a loan.

Some 23 per cent of those polled said they would expect to be turned down for a loan of £1,000, while 42 per cent were unsure they could secure £10,000 worth of credit.

Your Mortgage has stated that despite the tightening of the mortgage market in the past six months it is still worth hunting for a good deal.

Pauline McCallion, editor of the online resource, said that, as the cost of living is currently increasing, “it makes sense to try and cut costs where you can”.

However, she added that there are limitations on the market at the moment, with some lenders only accepting applications from certain types of customer and a number of building societies just lending to their members.

The British Bankers Association recently reported that the number of people switching mortgage deals increased by 24 per cent to 74,722 in April this year.

In related news, the Financial Services Authority claims that 1.4 million people are due to come off fixed-rate deals this year and could be searching for another mortgage.

A study by CreditExpert.co.uk has revealed that, although 96 per cent of respondents initially claimed to be familiar their finances, further probing proved that they were not.

It was also noted that only one in four people know how much they have left to pay back on their loans, while a fifth admit to only planning their finances every six months.

Jim Hodgkins, managing director for CreditExpert.co.uk, said that it was “alarming” people knew so little about the state of their finances, adding: “Keeping track of your commitments and planning for the future are always important.”

Other findings which emerged from the research included that people are not confident about applying for loans, with 23 per cent of those questioned expecting to be turned down for a loan of £1,000 and 42 per cent believing they would be refused £10,000.

In related news, MoneyExpert.com has revealed that some 38 per cent of people with debts are concerned about their ability to pay back their loans.

A report from Hometrack asserts that 28.3 per cent of would-be homeowners are unable to afford a property in their locality.

First-time buyers in London and the south-west are in the worst position, with 41 per cent and 40 per cent respectively being unable to get on the ladder.

The company attributes these problems to growing house prices in previous years and rising costs in other areas such as food and utilities which have seen the average mortgage cost for first-time buyers grow by 12 per cent over the past year.

People who want to a buy a property are now spending an average of 34.5 per cent of their salaries on mortgage repayments.

Richard Donnell, director of research at Hometrack, said that while mortgage rates for first-time buyers have increased, changes to the availability of mortgages has had the greatest impact on their ability to buy.

In related news, the Bank of England has revealed that mortgage approvals for April fell to a 15-year low.