Competition pushes loan rates down further

A number of lenders across the UK have reduced their personal loan interest rates over the past few months, which has increased affordability when it comes to borrowing in the UK. Most lenders have applied their best rate reductions to loans in the mid-range section, which are generally unsecured loans of between £7500 and £15000.

It has been reported recently that competition in the personal loan sector is resulting in increasingly affordable deals coming onto the market for potential borrowers. The base interest rate in the UK has been standing at just 0.5 percent for twenty two months now, which is the lowest level it has ever been in the history of the Bank of England, which spans well over three centuries.

The increasing competition means that lenders are continually trying to get one over on one another by reducing personal loan rates to make themselves more popular amongst consumers. This is helping to further drive down the interest rates charged on loans, as when one lender reduces the rates the others tend to follow. One lender, M&S, has now reduced the interest rate on its mid-range personal loan to just 6.9 percent, and this is the first time in around two and a half years that it has dropped below the 7 percent barrier.

According to one industry official restrictions are being eased up to some degree, giving consumers access the more affordable deals on the market. He said: ‘At long last, after a period of inactivity, we are starting to see the whole personal loan market starting to open up. Many lenders are beginning to open their books to more consumers and we are seeing more competitive deals, even for loans below £7,500.’

Tags: section, drive, lenders, competition, rate reductions, best rate reductions, rate

Stay within drink drive limit when on holiday

Every year many Brits head off on their holidays, with a large number of singles, couples, and groups heading to lively destination where they plan to drink themselves into oblivion.

However, anyone that is planning a drink fuelled holiday should bear in mind that even if they have travel insurance cover they may have their claim invalidated in the event that they suffer an injury as a result of being intoxicated.

Most insurance companies that offer travel insurance already have this stipulation in place, where if the accident is found to be the result of intoxication the claim could well be invalidated. American Express insurance is taking it one step further, and has stated that they will conduct an ‘acid test’ in cases where claimants have been injured on a drink fuelled holiday.

These regulations do not mean that holidaymakers cannot drink at all, but in order for the claim to be valid injured parties must prove that they are within the drink drive limits that apply in that particular destination, even if they are not actually driving. Officials from American Express Insurance services have warned that holidaymakers need to ensure that they look after themselves and do not drink to excess when they go away, otherwise it could end up costing them dearly.

Having travel insurance in place when you travel abroad is vital, as the cost of treatment and emergencies can prove extremely costly. However, if you take out insurance and then drink to excess you could risk having to shell out thousands of pounds anyway as the result of being injured whilst under the influence.

Tom Smith
21st September 2007

Tags: drink, travel, law, alcohol, drive, Insurance

CTF week launched

Child Trust Fund (CTF) Week is being launched today by economic secretary Ed Balls in a visit to the Ann Taylor Children’s Centre in Hackney.

The week, running from January 15th to January 20th, is part of a drive to encourage parents to endow their child with a CTF.

In most cases a £250 government voucher is redeemable for the account when it is opened.

Mr Balls said: “The Child Trust Fund’s success has exceeded our expectations. At a national level, three in four parents are actively opening their child’s account.”

He added: “Performance between different areas of the country varies but the design of the Child Trust Fund means no child will miss out.”

Every eligible UK child receives vouchers worth £250 to get the tax-advantaged long-term savings account started, with the same amount being deposited again when the child reaches seven years of age.

Children in lower-income families receive two additional payments direct into their CTF of £250.

Parents, family and friends can contribute up to £1,200 a year in total into the account.

Currently, 2.5 million CTFs have been set up, three quarters opened by parents themselves.

Tags: account, long-term savings account, Ann Taylor, success, drive, GBP, Trust Fund success