Consumers need to do a ’shopping list’ before choosing a bank account

Consumers need to create a “shopping list” to help them choose a bank account which suits them best, one financial expert has claimed.

The British Bankers Association (BBA) recommends that spenders need to look beyond the headline rate when examining the pros and cons of various bank accounts to ensure that they are aware of any conditions or limitations that apply.

Brain Capon, a spokesperson for the BBA, said: “When opening any account, regardless of who it is with – a British bank or a bank that is based abroad, you need to really decide what it is that you want from that bank overall.”

He added that the fact increasing numbers of banks from abroad are offering accounts in the UK is a good thing as competition between providers can enable consumers to get better deals.

According to the latest figures released for Britain’s high street banks, personal deposits have shown stronger growth than past months. The figures, from January 2008, show that the net change was up by £2.9 billion.

Tags: consumers, finance, spenders, Deposit account, high street banks

BBA: Mortgage outlook weaker

New mortgage lending is down indicating a weaker outlook for the mortgage market.

According to the BBA, house purchase approvals last month were down 27 per cent on last year’s figure for September and were also down 21 per cent in value.

The gross mortgage lending value for September this year was at £18.5 billion, just three per cent up on the same time in 2006.

Also, last month 160,879 mortgages were approved which was down 12.1 per cent on the previous year.

David Dooks, BBA director of statistics, commented: “Lower amounts of new mortgage lending and fewer loans approved for house purchase signal a weaker outlook for the mortgage market, particularly if loan supply reduces in the aftermath of the recent financial markets difficulties and borrowing costs remain at current levels.”

He added that card spending was down in September as were repayment rates and this resulted in a rise in net borrowing although in all, demand for unsecured borrowing was low.

The BBA is a trade association for UK financial and banking services and has members in 60 different countries.

Tags: Bachelor of Business Administration, house purchase signal, financial and banking services, new mortgage lending, purchase approvals, fewer loans, Fixed income securities, dooks