UK Money News - August 2008

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19/08/2008

18/08/2008

'More Brits' considering equity release loans
Older homeowners are considering equity release in increasing numbers, as they look to the plans as a means of improving their income in retirement.
House asking prices fell by 2.3% in August
UK asking prices fell again during August, new figures from Rightmove.co.uk have shown.
Car insurer calls for crack down on uninsured drivers
The new careless driving rules should be extended to crack down on all uninsured drivers, according to one of the UK's largest car insurance companies.
Millions of Brits' possessions are underinsured
Millions of Britons are significantly underinsured when out walking on the nation's high streets, it has been revealed.
Conditions continue to worsen for first time buyers
First time buyers are spending more of their income on house purchases than at any time over the last 34 years, it has been revealed.
Skipton launches five-year stepped mortgages
Skipton Building Society has unveiled two new five-year fixed rate mortgage deals which enable people to adjust repayments according to their life plans while still enjoying the stability of a fixed rate.
London house prices down 5.4%
London house prices fell dramatically during July, in a sign that the capital's market will not remain impervious to the market downturn.
Loan rates still rising
Loan repayment rates have soared to their highest level for seven years, as credit crunch hit lenders continue to squeeze struggling borrowers.
Crunch makes bank customers more cautious
The current spate of economic uncertainty has meant that bank consumers are less likely to chase a top rate with a lender they do not know and are more inclined to stay with a bank they trust, it has been discovered.

15/08/2008

Possession orders up 24% in second quarter
The number of homeowners at risk of repossession climbed during the second quarter, as soaring living costs and higher repayments on mortgage debt impacted on more and more consumers.
Tracker mortgages recommended by mortgage broker
Homebuyers have been urged to opt for tracker mortgages when purchasing a home in the current climate.
Insurer warns of drink-driving risks
Drivers who do not declare a drink driving conviction to their insurer and subsequently crash their car are risking a serious financial blow, it has been claimed.
Energy vouchers planned for low-income families
Low income families are to be issued with vouchers to help them meet soaring energy bills, it has been suggested.
Uninsured drivers send premiums soaring
Uninsured drivers on UK roads leave motorists paying over an extra £500 million annually for cover, according to research from comparethemarket.com.
Brits discover the joys of thrift
Saving up to buy goods is more satisfying than using borrowed money, a new survey suggests.
Peer pressure fuelling rise in debt among young
Peer pressure and the need to keep up with fashions is driving young people to take on loan and credit card debt, it has been discovered.
Brits warned over retirement savings risk
Millions of Britons could face a significant shortfall in their retirement income if they contract a serious illness, it has been revealed.
Majority of Britons 'missing out on capped deals'
Millions of Britons are facing higher energy bills after failing to cap their tariffs this month, it has been revealed.

14/08/2008

Over-50s warned over retirement finances
Hundreds of thousands of over-50s are failing to engage with their retirement finances, potentially leaving them short of money when they give up work.
Remortgagers 'expect arranging loans to take longer'
Homeowners looking to remortgage anticipate spending more time researching the deals available and expect to be hit with higher rates when they choose one, it has been revealed.
Price falls not finance are dissuading buyers
Millions of Britons are still able to find mortgage finance but are opting to delay buying in anticipation of further house price falls, it has been discovered.
Rattled savers flocked to NS&I accounts
Savers flocked to savings accounts and bonds from NS&I (National Savings and Investments) during the last financial year, it has been revealed.
Fees on equity release loans waived by Just Retirement
Just Retirement has announced that it will no longer charge upfront fees on its equity release loans.
Barclays' Personal Reserve system slammed
Barclays' Personal Reserve system has done little to make overdraft fees more comprehensible to consumers, it has been claimed.
Brits 'dread reviewing pension investments'
The expectation that checking how pension pots are invested will be a sobering experience is dissuading people from doing so, it has been claimed.
Brits unprepared for long-term care costs
Millions of adults expect to have to fund long-term care for their parents, it has been revealed.
Lodgers could rake in £63.4bn for homeowners
Homeowners who do not rent out a spare room are missing out on a total of £63.4 billion in income annually, it has been revealed.

13/08/2008

Abbey unveils new savings offer
Abbey has unveiled a new savings incentive which it claims will help avoid erosion of customers' balances by soaring inflation.
75% of Brits have no life insurance, survey shows
Life insurance cover is being shunned by millions of Britons despite the falling cost of policies, it has been revealed.
Higher living costs fuelling student debt problem
Students' failure to estimate their expenditure on living costs is contributing to the mounting finance debt problem faced by graduates, a new study suggests.
Over-55s facing debt mountain
Millions of Britons aged over 55 are sleepwalking into retirement facing huge debts, it has been discovered
Fillip for victims of credit card crime
Consumers who fall victim to credit card fraud have been lent a helping hand with the news that credit rating agencies are to share information.
Thieves target shops' Chip and PIN machines
Consumers have been warned of a new threat to their finances, in the form of a device that could steal details from inside retail chip and PIN machines.
Upper end of mortgage market 'unaffected by crunch'
Mortgage borrowers looking for loans of £500,000 or above are still being offered deals by lenders, despite the constraints in the wider market.
Storecard warning for consumers
Paying for goods with storecards is considerably more expensive than taking out a low-rate personal loan, it has been claimed.
Cash-strapped consumers cut down spending to pay energy bills
Millions of Britons are being forced to cut down non-essential spending in the face of the recent spate of energy price rises, it has been revealed.

12/08/2008

House prices down 0.7% in June
UK house prices fell again during June, as conditions in the property market continued to worsen.
Inflation hits over-75s hardest
Britons over-75s are suffering the most as a result of soaring inflation, according to the Alliance Trust.
Mortgage approvals down in June
The number of mortgages approved by UK lenders fell again during June, according to new figures from the Council of Mortgage Lenders (CML).
Inflation warning for savers
Consumers have been alerted to the impact that soaring inflation could be having on their nest eggs.
DIY enthusiasts urged to check home insurance
Millions of Britons could be risking a financial blow by failing to check the terms of their home insurance cover before undertaking improvements to their property.
Bank charge claims bonanza continuing
Britons are carrying on reclaiming bank charges despite the fact that the furore surrounding the fees has died down in recent months, it has been claimed.
The Leeds unveils new three-year fixed rate offer
The Leeds Building Society has announced it is launching a new three-year fixed rate mortgage aimed at the rising numbers of borrowers looking for stability over their finances.
Car buying 'cheaper with personal loans'
Car buyers can make huge savings by opting to fund their purchase with a personal loan rather than dealer finance, it has been claimed.
Property sales fall to 30-year low
Property transactions are currently at their lowest level for 30 years, according to the Royal Institution of Chartered Surveyors (Rics).
Final salary pension schemes back in the red
The UK's final salary pension schemes have slipped into the red, it has been revealed.

11/08/2008

UK's first £5 cash machine set to open
The first-ever cash machine in the UK to dispense only £5 notes is set to open in London's East End.
Britons confused over EU car insurance rules
Millions of Britons going on driving holidays around Europe could find they are seriously underinsured in the event of a crash, it has been claimed.
Cash-strapped Brits lose the savings habit
Britons are prioritising savings less in the face of higher food and fuel bills, it has been revealed.
Banks 'punish customers for their loyalty'
Britons are missing out substantial savings by staying loyal to their banks instead of seeking out the best deals on the market, it has been claimed.
Mortgage market shrinks 71%
The true impact of the credit crunch on the availability of mortgages was revealed today, with the news that there are currently 71 per cent fewer deals available compared with this time last year.
Britons 'lax' over pension savings
Britons have been warned that their lax approach to their pension savings could leave them facing an income shortfall when they retire.
11-year-old children saving for college
Schoolchildren are starting to save towards higher education from as young as 11, in the face of the soaring costs of taking a degree.
Credit card customers among crunch's biggest losers
Credit card customers have been almost as hard hit by homeowners by the credit crunch, new data has shown, with borrowing costs on plastic continuing to rise.
Car insurance costs edging up
Higher car insurance premiums are putting additional pressure on motorists who are already struggling with soaring fuel prices, new data has shown.

08/08/2008

Borrowers 'should expect rate cuts later this year'
The Bank of England is set to cut interest rates later this year and bring much needed relief to borrowers, one of the UK's largest mortgage brokers has predicted.
Ahipp: Hips don't lie
Home Information Packs (Hips) have delivered real benefits to home buyers and sellers, it has been claimed.
Darling quells stamp duty rumours
Alistair Darling has moved to quell rumours that the government is planning to permit borrowers to take a stamp duty holiday.
UK energy hikes 'subsidise French customers'
EDF customers in the UK are subsidising the European giant's French clients, it has been claimed.
House price growth hits 12-year low
UK house price growth hit its lowest level for over 12 years during July, it has been revealed.
UK repossessions hit 12-year high
The number of repossessions hit their highest level for 12 years during the first six months of this year, it has been revealed.
Single mums get the savings habit
Single mothers are prioritising saving to safeguard their offspring's future over cutting their own debt levels, it has been discovered.
Nationwide unveils new range of bonds
Nationwide has confirmed the terms of its new range of bond offerings, paying rates of up to 6.70 per cent.
Pension schemes leave Brits confused
Retirement planning is a source of confusion to millions of Britons with many unable even to distinguish a state pension from a personal pension.
Overseas credit card fees are Brits top bugbear
The fees charged by providers for using debit and credit cards abroad have been named as Britons' number one holiday gripe.

07/08/2008

House prices down for fourth month in a row
House prices fell for a fourth consecutive month during July, as conditions in the property market continued to worsen.
Yorkshire Bank waives mortgage arrangement fees
Yorkshire Bank has confirmed it will not charge arrangement fees for customers looking to remortgage throughout the month of August.
Pace of downturn 'has left UK unprepared'
The sheer speed with which the UK has entered an economic downturn is what has left Britons so financially unprepared, it has been claimed.
No cut in borrowing costs, as Bank holds interest rates
Borrowers hoping for a cut in repayment rates on personal loans and mortgages have been disappointed after the Bank of England's monetary policy committee today voted to hold the key base rate at five per cent.
The Leeds launches new savings bond
The Leeds Building Society has announced the launch of a new savings bond which it claims combines a guaranteed return with flexibility for the investor.
Brits urged to start pension plan early
Britons have been urged to start saving for their future as soon as possible or face the prospect of a grim retirement.
Lenders hiking fees on mortgage deals
Mortgage fees have risen over the last month, as lenders look to recover income lost by cutting rates on their home loans.
Energy-saving measures 'can cut bills by £1,000'
Homeowners can cut their gas and electricity bills by almost £1,000 annually by following energy-saving tips, it has been claimed.
Insurer warns of lighting storm threat
Homeowners have been urged to check their home insurance covers them for lightning damage, as the UK braces itself for unpredictable summer weather.
Savers benefiting from higher rates
Savers are continuing to benefit from higher returns on their balances, as competition for customer deposits hots up.

06/08/2008

Pension funds hit by market downturn
Volatility in the financial markets has prompted the pension funds of FTSE 100 companies to fall back into the red, new research has revealed.
Northern Ireland house prices 'down 4%'
Property prices in Northern Ireland are falling, bringing a two-year period of burgeoning growth to an end.
Insurer warns of perils of homebrew bio fuel
Motorists who are tempted to cut costs by making bio diesel at home have been warned to check they are comprehensively covered with home insurance.
Abbey confirms second mortgage rate cut
Abbey has announced it is to cut cost of selected fixed-rate and tracker mortgages.
Consumers choosing to streamline their banking
Britons are increasing opting to use a single provider for their financial products in a bid to make their finances as simple as possible, it has been revealed.
The Leeds unveils revamped savings offerings
The Leeds Building Society has unveiled new versions of its Inflation Buster ISA and Bond, which it claims will help customers see a real return on their savings despite the soaring cost of living.
Remortgagers unsure which deal to choose
Millions of Britons are confused over which mortgage deal to opt for in the face of uncertainty over interest rates, it has been discovered.
Older Brits fear higher energy bills
Older Britons are becoming increasingly worried about the prospect of higher energy bills this winter and the sacrifices they will be forced to make to pay them, it has been revealed.
Tesco launches new pre-paid card
Tesco has launched a new pre-paid credit card aimed at travellers looking to control their expenditure on holiday.
Repossessions up over 40%
Higher mortgage payments and the soaring cost of living has fuelled a surge in repossessions, new figures have shown.

05/08/2008

Bank could hike borrowing costs
The Bank of England could be set to hike interest rates this week, an economist has warned, with borrowers facing higher mortgage and loan repayments as a result.
PayPal launches pre-paid credit card
Online payments provider PayPal has announced the launch of pre-paid credit card to enable users to exercise more control over their spending.
RBS and NatWest cut cost of mortgages
Royal Bank of Scotland (RBS) and NatWest have announced they are cutting the cost of selected fixed and tracker mortgages.
Youngsters urged to tap elders for financial advice
Young people should look to the older generation for advice on how to survive the credit crunch, it has been claimed.
More Brits to seek help with debts
The number of Britons seeking out debt solutions is poised to soar this year, it has been claimed.
Brits raiding ISA savings
The rising cost of living is forcing Britons to make withdrawals from their Individual Savings Accounts (ISAs), it has been revealed.
More Northern Rock customers defaulting on mortgages
The number of Northern Rock customers falling into arrears increased dramatically during the first half of the year, in the latest sign that the soaring cost of living is impacting on borrowers’ ability to make mortgage repayments.
Outgoings eat into bank balances
Consumers have less in their current accounts as a result of the soaring cost of living, it has been discovered.
House prices 'to begin recovery by 2010'
A slowdown in the number of newbuild properties being constructed will help the recovery of the housing market, it has been predicted.

04/08/2008

Rent to Home Buy scheme 'won't help all first time buyers'
The government's attempt to aid first time buyers via its Rent to Home Buy scheme may not provide the fillip that is required, it has been claimed.
Brits book breaks early to save money
Britons are booking their holidays for next year in a bid to save money, it has been revealed.
Banks cutting savings rates for existing customers
High Street banks are cutting savings rates for existing customers as they attempt to restore their credit crunch-hit balance sheets, it has been claimed.
Site advises on cutting young drivers' insurance costs
A price comparison site has issued tips to young drivers to help them cut the cost of punitive car insurance premiums.
A&L unveils over 50s savings offerings
Alliance & Leicester (A&L) has launched two new savings offers aimed at the over 50s.
Students urged to look beyond account incentives
Students looking for a tailored bank account should ignore flashy gimmicks and pay close attention to interest rates and overdraft terms offered by providers, a price comparison site has advised.
One in five Northern Rock customers 'facing negative equity'
Around 20 per cent of Northern Rock customers are to be confronted with negative equity in the next 12 months, it has been reported.
Insurers take dim view of lost house keys
Britons are risking a burglary by being lax with their spare sets of house keys, according to Sainsbury's Home Insurance.
Abbey targets students with new account offer
Abbey has launched a new student account which aims to help holders manage their debts more effectively.
Surge in loans for home improvements
Increasing numbers of homeowners are taking out loans to fund home improvement projects, according to new figures from Lloyds TSB.

01/08/2008

Homeowners urged to insulate homes from price rises
Soaring energy bills mean that there has never been a better time to insulate your home, according to the National Insulation Association.
Uninsured drivers add £30 to premiums
Uninsured motorists are costing each UK driver an extra £31 a year in car insurance costs, it has been claimed.
Tips for cutting car insurance costs
A price comparison site has issued tips which could help drivers cut the cost of their insurance cover.
Gloomy property surveys 'tell only half the story'
Areas which have defied the downturn in the property market prove that reports of a slump are wide of the mark, according to the National Association of Estate Agents (NAEA).
Scarborough revamps Lifestyle savings accounts
The offshore savings division of Scarborough Building Society has announced it has revamped its Lifestyle range of savings accounts.
Profits announcement sparks fresh criticism of British Gas
Criticism of British Gas' decision to hike its tariffs mounted today after its parent company Centrica announced huge operating profits.
Surge in IVAs recorded as debt problems rise
More and more homeowners opted to take out an individual voluntary arrangement (IVAs) in the second quarter, adding fuel to predictions that the nation is facing a debt epidemic.
Prime London property prices down again in July
Centrally located prime London property is no longer bucking the wider downturn in the property market, with prices falling for a third consecutive month.
Annuity switching process stymied by delays
The majority of consumers who opt to change provider when they convert their pension pot into retirement income face delays in securing their money, it has been claimed.