HBOS angers customers with new overdraft fee charges

The banking industry is already at the centre of heated controversy with the problems that it has been caught up in over the past couple of years, but one bank has now angered customers yet again with changes to its authorised overdraft charges. Read more

Tags: bank charges, hbos banking changes, hbos, hbos bank charges, overdraft fees

Industry groups and lenders reluctant to make house price forecasts

Each year many lenders and various industry groups tend to release forecasts relating to house price movement over the year to come. However, this year – which has been a particularly turbulent one in the housing sector – a number of lenders and agencies have said that they will not be making any forecasts in relation to house prices, and this is for a number of different reasons. Read more

Tags: house price forecasts, institute of chartered surveyors, hbos, takeover, various industry groups, lloyds tsb, mortgage lenders, different reasons

Savers worry about where to put their cash

The world of finance has been thrown into complete turmoil over the past year, not just for borrowers and lenders but also for those looking for a safe place to stash their hard earned cash. It seems that until around this time last year we all had a pretty good idea of where we wanted to put our cash in order to make it work for us, but since the chaotic situation with Northern Rock threw the banking world into turmoil many of us have no idea what to do with our savings, and seems to be running from one bank to another clutching our precious cash in the hope that we will finally find a safe resting place for it. Read more

Tags: northern rock, icesave, savings, post office, hbos, lloyds tsb

Northern Rock forced to cut savings accounts

Just a year ago Northern Rock was being branded the victim of the first run on a British bank in almost 150 years, and customers were flocking to get to the bank and take out their cash amidst rumours that the bank was on the verge of collapse. However, since this time the bank has been nationalised and since falling into government hands now offers a 100% guarantee on savings deposits for customers – a guarantee that had previously only been available on National Savings & Investments. Read more

Tags: year, savings accounts, collapse, northern rock, hbos, lloyds tsb, rush

Northern Rock benefits from HBOS takeover

This time last year Northern Rock was fast becoming known as one of the first major victims of the global credit crunch in the UK, with rumours that it was on the verge of collapse and savers rushing to withdraw billions of pounds in savings within a few days. The bank became the victim of the first run on a British bank in nearly one hundred and fifty years. Earlier this year Northern Rock was nationalised as a result of the problems that it had experienced. Read more

Tags: government owned bank, northern rock, hbos, place, lloyds tsb, government, billions, immediate fears

What does the HBOS takeover mean?

Earlier this week Lloyds TSB, the high street banking giant, announced that it was taking over HBOS in a £12.2 billion rescue operation. The takeover has been rushed through, and officials have said that the government has all but ripped up the rule book with regards to competition so that the takeover could go ahead. Alistair Darling stated: ‘We have made a decision that we will waive the competition requirements in relation to these two banks. That is not going to get revisited,’ Read more

Tags: lloyds tsb, tsb, cost, one billion pounds, hbos, Royal Bank of Scotland, government

Mortgage finance working group launched to advise government

A group of industry experts has been established to provide advice to the government on how to improve the function of mortgage finance markets.

The group has been formed in response to the complex issues raised about the functioning of the mortgage-backed securities markets due to the ongoing crisis affecting global financial markets.

Its first job will be to assess the current state of the mortgage finance market.

Led by former HBOS chief executive Sir James Crosby, the working group will draw on the experience of lenders, investors the Treasury, the Bank of England and the Financial Services Authority.

Chancellor Alistair Darling said that the group’s “work will be an important contribution to stabilising the cost and supply of UK mortgages”.

Earlier this week, the news editor of moneywise.co.uk said that although there is still demand for new mortgages at the moment, it is difficult to tell whether it will last.

Rebecca Atkinson said that First Direct’s decision to stop selling mortgages to new customers shows that mortgage lenders are suffering from liquidity problems and also trying to attract good-quality borrowers rather than a high quantity of customers.

Tags: liquidity, job, good-quality borrowers, hbos, bank of england, mortgage, government, First Direct decision

Boost in saving predicted for 2008

The number of consumers saving money is expected to grow during the course of 2008 “in terms of the proportion of the money in society”, claims one financial expert.

Halifax said that the slow down in the economy is likely to make consumers feel they need to deposit their money into their savings accounts in a bid to save.

Jason Clarke, spokesperson for Halifax, said: “When the economy is growing, people are confident.”

“When things begin to slow down, people think ‘now I need my rainy day money’ – it’s almost the reverse of what it should be. It’s down to [the] human psyche,” he added.

Halifax also advised those consumers looking for a savings account to research their options before committing to a deal.

According to the Buildings Society Association, building societies attracted a record £16.1 billion of savings inflows in 2007, which is almost double the inflow of 2006.

Meanwhile, in December 2007, HBOS forecasted that savings in Individual Savings Accounts (Isas) would rise by £30 billion to £240 billion in 2008.

Tags: psyche, building, confident.""When things, hbos, ISAs, record, individual savings accounts, financial expert

Young drivers need to ’shop around’ for insurance

Young drivers have been advised to ’shop around’ for insurance after some providers have withdrawn cover for them, according to an insurance body.

The Association of British Insurers (ABI) said that there are some companies who do not offer young drivers cover as they fear they are more likely to have an accident.

Malcolm Tarling, spokesperson for the ABI, said: “They are more likely to claim and the claims cost a lot – I have never seen anything more expensive.”

He added that as a result young drivers should shop around to find the best deal for their insurance, as some companies are more competitive than others.

“Look into the pass plus; some companies now offer incentives for young drivers who have this,” he concluded.

According to reports in the Daily Telegraph, Axa, More Than, Swiftcover, Saga and HBOS brands such as Esure, Sheila’s Wheels and Halifax are among the growing number of insurance providers that automatically reject all applications from 17-year-old drivers.

Tags: Lloyds Banking Group, hbos, result, best deal, Pass Plus, Association of British Insurers, Association, Disaster Accident

£44m sitting in unused accounts

A campaign is being launched to reunite customers with their unused bank and savings accounts.

Halifax is attempting to bring people back together with their accounts and the money that is idly sitting in them.

According to the bank, there are around 110,000 unused Halifax accounts in the UK, holding a combined £44 million.

The majority of people who have a forgotten account are said to have less than £100 sitting in them, but some have much more.

Halifax has employed a third party to search for those with accounts containing more than £1,000, but it is calling for other bankers to make themselves known.

“Our job is to reunite as many of our customers as is possible with their cash,” said Mike Regnier from Halifax and Bank of Scotland.

“We are using every means at our disposal to do so – mailings, advertising and the internet. We are also employing search agents where appropriate.”

The move comes as government plans to change the rules regarding unused accounts appear likely to come into force in the next few years.

It was announced in the 2005 pre-budget report that if an account is unused for 15 years it will be officially tagged as dormant.

This means the money can be given by the government to good causes, although the cash will always remain the account holder’s property and he or she can reclaim it at any time.

If you have an account which you have not used for some time it may be worth checking to make sure there is no money in it.

Tags: hbos, government, holder, unused accounts, property, Mike Regnier, savings accounts, report