Personal Finance News
Savings market has gone “bananas”
Posted 2008-05-15
Savers have been told to take advantage of the current climate in the financial markets as there are some attractive deals available to them.David Kuo, head of personal finance at Fool.co.uk, said that the high levels of interest being offered on some savings accounts can be beneficial to consumers but did urge caution when considering which one to choose.He stressed that while some of the rates may seem very good value, the deal could turn out to be a double-edged sword and that those who offer the best product tend to be the most high-risk, as a rule of thumb."The savings market has gone bananas, but its ripe for savers. ...
Read Savings market has gone “bananas”
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Savings market has gone “bananas”
Posted 2008-05-15
Savers have been told to take advantage of the current climate in the financial markets as there are some attractive deals available to them.David Kuo, head of personal finance at Fool.co.uk, said that the high levels of interest being offered on some savings accounts can be beneficial to consumers but did urge caution when considering which one to choose.He stressed that while some of the rates may seem very good value, the deal could turn out to be a double-edged sword and that those who offer the best product tend to be the most high-risk, as a rule of thumb."The savings market has gone bananas, but its ripe for savers. ...
Read Savings market has gone “bananas”
Cost of living fuels payday loans rise
Posted 2008-05-15
The number of payday loans being taken out by consumers has increased by 55 per cent since September last year, new research has found.A survey by Moneysupermarket.com has found that the rise in cost of utility bills and food has seen payday loans become a more popular option for borrowers in need of short-term credit.However, Tim Moss, head of the price comparison site, warned that such forms of credit are only beneficial if the loan is for a short period of time and advised consumers to borrow from family members if the money is needed over a longer period of time."As disposable income is being squeezed through increases in the cost of food, fuel, utilities and general living necessities, these loans are increasingly used to help those on a tight budget. They are a bit like a taxi - convenient for short-term journeys," he said.Payday loans are designed to cover a persons expenses until their next pay day....
Read Cost of living fuels payday loans rise
Cost of living fuels payday loans rise
Posted 2008-05-15
The number of payday loans being taken out by consumers has increased by 55 per cent since September last year, new research has found.A survey by Moneysupermarket.com has found that the rise in cost of utility bills and food has seen payday loans become a more popular option for borrowers in need of short-term credit.However, Tim Moss, head of the price comparison site, warned that such forms of credit are only beneficial if the loan is for a short period of time and advised consumers to borrow from family members if the money is needed over a longer period of time."As disposable income is being squeezed through increases in the cost of food, fuel, utilities and general living necessities, these loans are increasingly used to help those on a tight budget. They are a bit like a taxi - convenient for short-term journeys," he said.Payday loans are designed to cover a persons expenses until their next pay day....
Read Cost of living fuels payday loans rise
Fixed-rate mortgages increase by £300
Posted 2008-05-15
The cost of monthly repayments on fixed-rate mortgage deals has increased by £300 over the last two years, new research has found.Personal finance website MoneyFacts has revealed that the average interest rate on a two-year product is around 6.64 per cent.In addition, the Council of Mortgage Lenders has shown that those looking to take out new mortgages or refinance their current home loan are facing the highest fixed-rate deal costs for over ten years.Moneyfacts claims that borrowers with a property worth £150,000 will see their repayments rise by £206 per month to around £1,026, while those with a £100,000 mortgage will see their monthly charge increase to £684, a rise of £137.It is believed that this year up to 1.4 million people will come off their current deals and face substantial increases on new products. A fixed-rate mortgage is one which charges a set rate of interest throughout the life of the loan....
Read Fixed-rate mortgages increase by £300
Fixed-rate mortgages increase by £300
Posted 2008-05-15
The cost of monthly repayments on fixed-rate mortgage deals has increased by £300 over the last two years, new research has found.Personal finance website MoneyFacts has revealed that the average interest rate on a two-year product is around 6.64 per cent.In addition, the Council of Mortgage Lenders has shown that those looking to take out new mortgages or refinance their current home loan are facing the highest fixed-rate deal costs for over ten years.Moneyfacts claims that borrowers with a property worth £150,000 will see their repayments rise by £206 per month to around £1,026, while those with a £100,000 mortgage will see their monthly charge increase to £684, a rise of £137.It is believed that this year up to 1.4 million people will come off their current deals and face substantial increases on new products. A fixed-rate mortgage is one which charges a set rate of interest throughout the life of the loan....
Read Fixed-rate mortgages increase by £300
Mortgage seekers told not to expect any perks
Posted 2008-05-14
Mortgage providers are unlikely to offer any perks or incentives in order to win business, an industry figure has claimed.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....
Read Mortgage seekers told not to expect any perks
Consumers warned over using credit for household expenditure
Posted 2008-05-14
A debt charity has warned people not to become too dependent on credit to cover the cost of bills or other household necessities.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....
Read Consumers warned over using credit for household expenditure
Use of mortgage intermediaries increases
Posted 2008-05-14
The number of first-time buyers turning to mortgage intermediaries for advice has increased, according to the industry body.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....
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Internet used more by credit card customers
Posted 2008-05-13
The internet is being increasingly used by credit card customers, to research deals and fill out applications for new cards, according to a recent report.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....