Official tries to explain banks’ low business lending levels

It was announced recently by the Business Secretary, Vince Cable, that the big banks in the UK were failing to meet their agreed targets with regards to lending to small and medium sized businesses. Figures were released recently showing that based on quarterly results the banks had not met their targets, and were therefore not on target for meeting their annual business lending minimum figure.

The banks have argued consistently that the reason behind the low lending figures for small and medium sized businesses was that in the current climate many businesses did not want to take out loans. Banks claim that whilst they are making credit available for business customers the low demand for finance means that there is little they can do to increase their lending figures until demand increases.

This has now been backed up by an industry official, Anthony Thomson, chairman and co-founder of Metro Bank. He said that his bank is now targeting small businesses as its main customer but that demand for borrowing is low. He said that whilst many businesses had signed up to the bank the demand for finance was much lower than had been expected, which meant that the bank was unable to lend as much to business customers as it may have anticipated. He also said that businesses were failing to look for the best rates on loans.

He said: ‘I hate to sound like I am defending the big banks but our experience is that there is just not the demand for credit from small companies.’ He also said: ‘I always thought small firms would be very sensitive to interest rates, but they are even less concerned about the rates than consumers.’

Tags: banks in the uk, Anthony Thomson, industry, industry official, borrowing, Metro

Mortgage markets still look bleak

According to a leading industry group the mortgage market in the UK still looks bleak, with the lenders stating that it has become ’stuck in a rut’. Over the course of February it is claimed that the low levels of lending have continued. Officials have said that the level of lending for the month of February were nearly as low as they were for January, with around £9.5 billion of gross lending.

The Council of Mortgage Lenders released the figures, and they have stated that it is likely that this year will continue to be a challenging and difficult one when it comes to the mortgage and property sectors. Another survey has revealed how the cost of renting has shot up as a result of so many people being unable or unwilling to get a mortgage, which has resulted in a higher demand for rented property.

The Council of Mortgage Lenders has said that part of the problem stems from restrictions amongst lenders when it comes to granting mortgage finance. However, the group also said that there was a definite drop in consumer appetite for new borrowing, with many people too worried about their financial situations and their job security to risk taking on a huge mortgage.

One official also commented on the increase in rents and demand for rented property, stating: “The fierce competition among renters in many areas of the country has cut short the traditional lull we tend to see between December and February. The consistently constrained level of lending to home buyers has bolstered demand – and rents – in the private rental sector during what is typically a slower period. With the mortgage market even more sluggish since the start of 2011, this backlog of frustrated buyers has increased even further and rents have risen correspondingly.”

Tags: council of mortgage lenders, industry, official, drop, huge mortgage, result

Rules tightened on renting homes by banking industry

According to recent reports the banking industry has decided to clamp down and tighten the rules when it comes to renting out homes. Read more

Tags: blasé, fact, industry, mortgage, financial crisis

Is quantitative easing working?

When the Chancellor of the Exchequer, Alistair Darling, first announced plans for quantitative easing in the UK he said that £75 would be allocated for the scheme with an additional back up of a further £75 billion if necessary. Read more

Tags: thing, quantitative easing, bank, economy, Economic policy, recession, industry

Quarter 2 sees repossession levels fall

The second quarter of this year has seen repossession levels fall in the UK according to a recent report. Repossessions have been rocketing in the UK as a result of the global credit crunch and high interest rates. Read more

Tags: repossession, lenders, industry, mortgage defaults, repossessions, high interest rates

Some cardholders could spend more than a lifetime paying their credit card debt

Concerns have been expressed recently that some credit card holders who are customers of the credit card giant Barclaycard could end up spending more than their lifetime trying to repay their credit card balance, after the credit card company announced that it was planning to reduce the minimum level of repayment that it was asking from its customers each month. Read more

Tags: industry, GBP, bill, Credit Cards, month, credit card debt

Successful start to car scrapping scheme

The car scrapping scheme that was launched by the Labour government last month has shown initial signs of success according to recently released figures. Read more

Tags: industry, new cars, showroom traffic, Labour, monthly registrations data

Holiday companies may have to offer huge discounts

It has been claimed that due to a drop in bookings holiday companies in the UK may have to start offering huge discounts on holidays abroad in order to generate interest from consumers and get the travel market moving again. Read more

Tags: industry, United States, holiday savings, tour operators, United Kingdom, cheap holidays, holidays, travel market moving

Card made available to allow children to shop via the Internet

A new card has been launched that could allow children aged just thirteen to make purchases via the Internet. Kids will be able to shop online as well as make cash withdrawals on the debit style card. Read more

Tags: industry, The card, day, Go card, natwest, make, Automated teller machine, new card

Economic growth will be slow according to CBI

According to the Confederation of British Industry the growth of the UK economy still has a long way to go, and progress is likely to be slow. The comments from the CBI came amidst a variety of other industry reports that showed encouraging figures with regards to output and growth over April and May, and showed a rise in consumer confidence, as well as increased interest in the housing market from first time buyers. Read more

Tags: first time buyers, bank of england, industry, cbi officials, May, economic growth. growth, credit crunch

Job loss misery for UK

According to recently released figures the UK has been hardest hit compared to other countries in Europe when it comes to the number of job losses during the first three months of the year. Read more

Tags: Macroeconomics, Dublin, jobs, industry, quarterly, job losses, discount, creation

Job cuts will not necessarily mean recovery

It has recently been claimed that many of the financial companies, banks, and insurance firms that have been slashing jobs over recent months will not find that this necessarily puts them on course for a speedier recovery from the financial crisis. Read more

Tags: core employees, recognise, Business Finance, United States, recession, job cuts

Banks filing further appeal over bank charges

The battle between the UK’s High Street banks and the Office of Fair Trading over bank charges has been raging for some time, and has been longer than most people imagined. Read more

Tags: watchdog authorisation, baks, office of fair trading, half, Fair Trading, bank charges

Banks decides to look at quantitative easing to assist economy

Over the past six months the nation has seen the UK’s base interest rate drop dramatically from 5 percent in October of last year to just 0.5 percent by March of this year. This came after a series of six interest rate cuts from the Bank of England in as many months, taking the base rate to its lowest level in the three hundred and fifteen year history of the Bank of England. Read more

Tags: access, industry, Central bank, Mortgages, interest rates, series, level, bank of england

An increasing number of privately renting tenants are getting evicted

A recent report has shown that there has been a rise in the number of privately renting tenants that are being evicted from their rented homes, and this is causing concern amongst many industry officials. Read more

Tags: industry, shelter, Business and Economy, tenant evictions, home, Real estate, buy-to-let, unfairness

Recession results in increase in liquidations

Officials from the Insolvency Service have recently reported that there was a sharp increase in the number of companies that went bust in the last three months of last year, as the recession and the global financial crisis continued to take a grip in the UK. Read more

Tags: liquidations, industry, credit crunch, recession, grip, sector, funding, year one

Savings rates continue to tumble

The base interest cuts that have been applied by the Bank of England over the past few months have been welcomed by many borrowers and industries, and for many homeowners and borrowers the base rate cuts have left them with far more money in their pocket each month as a result in a drop in repayments. Read more

Tags: building society, Mortgage loan, bank of england, industry, account, savings rates, action, ISA

Officials encourage mortgage overpayments

A number of industry officials have recently highlighted the benefits of overpaying on a mortgage, stating that borrowers could benefit hugely by taking advantage of the lower interest rates and making higher than necessary repayments on their mortgages. Read more

Tags: interest rates, fortune, england, industry officials, industry

Consumer to cut back further over this year

The sales that have been on both before and since the Christmas period have seen many people flock to the shops in the hope of picking up bargains for the home or as gifts. Read more

Tags: unemployment, household budgets, hope, january sales, spending, Business cycle, industry, name

Getting your dream home whilst house prices are down

For most homeowners the fact that property prices have been plummeting over the past year is not good news, as many people who saw the value of their homes rocket in the past decade have now seen equity levels coming back down by significant levels as house prices have spiralled downwards. However, the house price falls are not bad news for everyone, as those looking to purchase a property can now get their dream home for far less than they would have paid last year, making tens of thousands of pounds difference in some cases, and with higher priced properties even more. Read more

Tags: point, South-West, cash, freefall, industry

January sales start early on the High Street

With Christmas well on its way and consumer spending levels still low due to tight financial conditions, many major retailers on the High Street have started their January sales early by slashing the prices of their goods in the hope that it will boost spending amongst consumers. Retailers are slashing prices by up to 75 percent in some cases, hoping that their bargain prices will pull in customers and reduce the risk of shattered profits over what is expected to be a bleak Christmas in terms of spending. Read more

Tags: year, sales, retail, festive season, risk, recession, research, industry

Will you be shopping or saving this Christmas?

The turmoil that has hit the financial markets over the past year have affected many of us in a number of ways, and tighter credit conditions coupled with soaring inflation, rocketing bills and petrol costs, high mortgage repayments, and other rising costs has left many of us with very little money to blow on spending, which has in turn affected the economy sending the nation spiralling towards recession. Read more

Tags: consumers, financial, Healthcare reform in the United States, moment, industry, finance, christmas

CML said mortgage lending fell again in August

According to officials from the Council of Mortgage Lenders mortgage lending levels fell in August, with the value of mortgage lending having fallen by 12 percent compared to July and by 36 percent compared to August of the previous year. The total amount of new mortgage lending for the month came to just £21.8 billion. This was the lowest level of mortgage lending since 2005 and the lowest level of mortgage lending in August since 2002. Read more

Tags: new mortgage lending, industry, property transactions, council of mortgage lenders, mortgage lending, long house prices, amount, economics

Equity being used by older people in debt

According to a recent report a rising number of older homeowners are using the equity in their homes in order to pay off debts. Officials are concerned that this increasing trend is leaving more and more people without any means to support themselves in their retirement. Read more

Tags: average age, order, offering, debt, industry, equity release, equity, debt consolidation

Is haggling a way to get a good deal?

As a nation the British do not really engage in haggling in the same way as consumers in many other countries do. In most cases if there is a price tag on something that we want to buy then we pay it without question, or we wait until the sales are on and hope that the price gets reduced. However, with the financial climate and consumer finances in the state that they are in, Brits can no longer afford to maintain a stiff upper lip and pay what they are expected to, and it seems that an increasing number of consumers may turn to the age old process of haggling in order to try and get the things that they want at a price that they can afford. Read more

Tags: industry, Communication, Bargaining theory, insurance policies, Marc Lockley, research, haggling

Inflation levels continue to soar

Inflation levels in the UK have been at the centre of concern for the Bank of England and other government sectors for some months now, having rocketed to way over the government’s target earlier this year, and showing signs that the rise is set to continue. The government target for CPI inflation is 2%, but for the past few months it has soared out of control. In May the level of inflation hit 3.3%, and this resulted in the governor of the Bank of England, Mervyn King, having to write to the Chancellor of the Exchequer, Alistair Darling, to explain why inflation levels had soared so high, and what was going to be done to bring them back towards target.
Read more

Tags: inflation, economics, industry, cpi inflation, cost

Insurance industry commits to pay out more

The insurance industry’s commitment to pay out more on claims for critical illness, income protection and life insurance has been welcomed by industry experts.

Previously clients, insurers and medical practitioners were sometimes “unsure of what position to take” when dealing with a claim where medical information had not been disclosed unless the customer has deliberately withheld it.

Graeme Trudgill, technical and corporate affairs executive of British Insurance Brokers’ Association, said: “The Association of British Insurers (ABI) are trying to make the situation a bit more black and white to help customers do the right thing and to pay the claim.”

He added that some claims have not been accepted for “various reasons” and critical illness has had a “bad time” in the press.

The ABI changes are hoped to make the process of making a claim more consumer friendly.

According to LifeSearch, one in five critical illness claims are rejected.

However, according to its research carried out in the fourth quarter of 2007, there has been a marked improvement in the number of claims being paid out in the last 12 to 18 months.

Tags: black, quarter, insurance brokers association, economics, lifesearch, corporate affairs executive, consumer, industry

Home insurance should cover new installations

Homeowners could benefit from increasing home insurance cover to cater for the increased value of their homes following renovations advised an industry body.

The British Insurance Brokers’ Association (BIBA) said that the reassessment of the contents value and building cover is dependent on what work has been done and its size.

Steve Foulsham, technical services officer for BIBA, said: “If it’s an expensive, state of the art new kitchen worth £10,000, then you may wish to increase your sum insured to cater for that.”

He added that BIBA gets many queries from members of the public asking for clarification on what falls within home and contents insurance.

The “general feeling” among insurers is that once a renovation has been fixed down, it becomes part of the building, Mr Foulsham concluded.

According to the British Retail Consortium, citing figures from Datamonitor, in 2008 the UK DIY and hardware market is estimated to be worth £16.1 billion.

This is an increase of 17.7 per cent since 2003.

Tags: sum, economics, cover, building, part, body, industry

CML: FSA findings a ‘wake-up call’

The Council of Mortgage Lenders (CML) has responded to the Financial Services Authority’s (FSA) publication of case studies of good and bad practise in mortgage brokers’ treatment of consumers.

It welcomed the publication, saying that it would act to help improve the quality of overall service.

The CML will support any action against brokers who fall short of targets outlined by the FSA and brought to their attention.

It states that good brokers’ practise is undermined by those who fail to meet industry standards.

Director general of the CML, Michael Coogan, commented: “After three years of regulation, the FSA is right to expect its regulatory standards to be in place across the whole market. These findings are a wake-up call to those brokers who are behind the pace.”

He added that the FSA must ensure its expectations are explained with clarity, a stipulation especially important for small broking firms.

Banks, building societies and other lenders make up the membership of the CML, which supervises 98 per cent of all residential mortgage lending in the UK.

Tags: loan, bad practise, council of mortgage lenders, uk, industry, practise, pace

Brits ‘bombarded’ with credit card cheques

British residents were sent 313 million undesired credit card cheques last year, it has emerged.

According to recent research, 96 per cent of all credit card cheques issued are unsolicited, with only one in 50 of the 22.5 million consumers sent the cheques actually asking for them.

Furthermore, it was found that many people are unaware of the charges they incur upon using the card, with 2.1 million credit card holders thinking no charges apply to the cheques.

In fact, using a credit card cheque costs consumers a total of £298 million more than a normal credit card purchase in interest and other related charges.

Mike Naylor, personal finance expert at uSwitch.com, the company carrying out the research, said: “During 2006, at the height of the media frenzy surrounding credit card cheques, some providers may have scaled down their promotional activities, but nowadays it would seem that it’s ‘business as usual’.

“The reality is that the credit card industry has far more to lose than consumers if people had to ‘opt-in’ to receive credit card cheques.”

Tags: 5 million, industry, mike naylor, Recent research, Business Finance, media frenzy, business, card

Defaqto: Cash in on cash back credit cards

Consumers are advised to take advantage of the offers available on cash back credit cards, according to Defaqto.

The company explains that, although comparing the best deals is not always straight forward, there are significant “incentives” for choosing them.

Principal consultant, David Black, commented: “Despite their complexities, cash back credit cards offer a genuine return for card holders but are only appropriate for those people who always pay off their entire balance every month.

“This is another example in the credit card industry where consumers can take advantage of the offers by having more than one card and using each selectively to maximise cash back earnings.”

Some of the complexities of conditions and bonuses include tiered earning rates, introductory enhanced rates, maximum qualifying spends and enhanced earnings at specific retailers.

Defaqto is an independent financial data collection and research body, giving up-to-date product information to the financial services industry.

Tags: card, advantage, Electronic commerce, finance, industry, consumers, product, Defaqto

Borrowers warned not to ’stretch themselves’

Consumers are advised not to “stretch themselves too far” with unsuitable mortgage products, an industry expert has said.

According to Andy Pratt, chief operating officer at Alexander Hall, doing so, whether fraudulently or accidentally, could land people in financial difficulty.

He explained: “[Sometimes] it’s a genuine mistake where they stretch themselves too far; a good mortgage broker should alert them to that by assessing their income and outgoings.”

Meanwhile, he said, there was no real cause for concern as the market “has got better and better” with the possession levels relatively steady.

According to the Council of Mortgage Lenders, in the first half of this year, 14,000 properties were taken into possession, representing 0.12 per cent of total mortgaged properties.

Alexander Hall is a UK mortgage brokers offering independent mortgage advice and helping develop the operations of the mortgage industry.

Tags: mortgage products, industry expert, difficulty, industry, UK mortgage brokers, Andy Pratt

Isas to be ‘increasingly’ popular

The growing popularity of individual savings accounts (Isas) in the past few years is a continuing trend, an industry expert has said.

According to Michael Brill, director of Baronworth Investment Services, people are increasingly putting their equity into Isas as traditional banking methods become more risky and less attractive.

He said: “If you go into a cash Isa then it is very safe. In a deposit account, one would have thought it is the safest you can get.

“If someone wants to make sure their money is saved and they are not playing with the stock market it is an excellent way to save tax free money and a lot of people are doing it.”

He added that, in the most part, cash Isas are “very flexible”, with consumers advised to select one that best suits them.

HM Revenue and Customs released figures this month showing the amount of money invested in Isas, which now stands at an impressive £208 billion.

Tags: michael brill, market, lot, ISA, way, Business Finance

Home chip and pin can help tackle card fraud

Home chip and pin readers are a useful tool in tackling the widespread problem of credit card fraud, industry body Apacs said today.

Online transactions are to be made safer by the handheld devices – over half a million of which are to be sent out by the end of the year.

The chip and pin machines are aimed at reducing the card-not-present fraud concerning online transactions, which increased by 16 per cent from 2005 to 2006 – results out of line with the overall three per cent drop in fraud for the period.

Mark Bowerman, a spokesperson for Apacs, said: “What the device has the potential to be used for in the future is also internet shopping transactions and telephone shopping transactions.

“They’re very easy to use,” he added. “They’re just like a small handheld calculator. You just put your chip and pin card in it and tap your four-digit pin in and then a number comes up on the display screen.”

British bank Barclays has already announced that it is to send out the handheld readers to online banking customers later in the year, with other high street banks also launching similar schemes.

Tags: internet, online banking, industry, internet shopping transactions, street, industry body apacs, handheld readers

Car Insurance For Women

According to Sainsbury’s Car Insurance survey, women drivers are paying less than their male counterparts for their car insurance. Female drivers in the UK currently pay an average of £412.44 a year – which is more than £90 less than the male average of £503.98. Read more

Tags: women drivers, women car insurance, female drivers, female car insurance, car insurance policies, Bingley, industry, day

Appropriate Insurance Company

One of the most important contributors of the UK economy is the insurance industry. The insurance industry is among the top employers of UK and a significant source of overseas earnings. It helps businesses to protect themselves from risk and provides a wide range of services to ordinary people, from car and house insurance to pensions. Searching for an appropriate insurance company is an important task in present days where insurance companies are mushrooming at every corner. Read more

Tags: industry, important contributors, claim insurance, Insurance, member, United States, insurance companies, world