Mortgage approvals rise to one year high in June

A leading industry group has released data showing that the number of mortgage approvals for new property purchases in the month of June reached a one year high. The data was released last week by the British Bankers’ Association and showed that the number of UK mortgage approvals for June reached 31,747.

This figure for June was an increase from the 30,803 mortgage approvals that were seen in the previous month. It was also the highest value seen since July of 2010. Statistics Director from the BBA, David Dooks, said that banks were continuing to lend on mortgages for new property purchases but added that the mortgage market was still weak. He did state that there had been some level of revival in the buy to let market, with investors seeing the benefits of buy to let in the current climate where demand for private rental homes is at an all time high.

The results also showed that there had been a drop in net lending to non-financial companies, which fell by 2.5 percent. Officials said that this drop in net lending was partly due to low demand for credit from these companies, many of which are very wary about taking on further business debt in the difficult financial climate, with many preferring to try and pay down debt rather than take more debt on. However, this could have a significant negative impact on the growth of the economy according to many industry officials.

IHS Global Insight chief economist Howard Archer said: “It is likely a sign that companies are becoming increasingly wary about borrowing and investing in the current difficult economic environment – which in itself is worrying for growth prospects.”

Tags: british bankers association, growth, value, new property purchases, economist

Insurance hikes hit over 50s

The results of a recent survey have revealed that vehicle insurance hikes have been hitting people aged fifty and over in the UK. A number of surveys that have been released recently have shown that the cost of insurance cover has rocketed for younger drivers but it seems that the price of insuring a vehicle is also resulting in older drivers struggling.

Figures released recently have shown that over the past twelve months motorists aged fifty and over have seen a huge hike in the cost of car insurance, leaving many struggling to keep their vehicles on the road. In the space of just twelve months the cost of motor insurance for those aged fifty and over is said to have increased by a massive 26 percent.

The survey was carried out by the firm ConsumerIntelligence.com, and involved polling more than six hundred thousand people. The results of the study showed that for motorists aged fifty and over the cost of insurance increased from just over £355 in June of last year to just under £450 in June of this year.

It was also revealed that there was a vast different in prices being quoted by insurance firms that specialised in motor insurance for those aged fifty and over, with the cheapest being £378 and the most expensive being £563, which reflected a different of 49 percent.

It is thought that part of the reason why motor insurance firms are upping the cost of cover for this age group is because many do not expect older drivers to remain loyal. This is reflected in the number of older people that are prepared to switch motor insurance providers, with 81 percent of drivers in this age group shopping around for more competitive quotes when it comes time to renew their cover.

Tags: Insurance, fifty, Vehicle insurance, firm consumerintelligence.com, ConsumerIntelligence.com, insurance cover, massive 26 percent, June

Save By Using Cash When on Holiday

Most people use credit cards when they are traveling on vacation because they feel that it is a safer way of handling their money than using cash for their needs. They feel that there is a greater chance of having the cash lost or stolen and then they are left stranded. By using a credit card, they can report it lost or stolen and not have to worry about losing any money as a result. Read more

Tags: account, Most people, save holiday money, save cash on holiday, currency exchange cards, uk, Pound sterling

Fraudulent Attempts to Access Bank Accounts Have Increased

If you have been one of the millions of people who have received an email from your bank asking you to update your information, then it is quite likely that you have been targeted in one of the many bank phishing scams that have been plaguing the Internet and banks. Con artists who try to scam people into revealing their personal banking information has increased about 180% in 2008 over the same numbers for 2007. Read more

Tags: security, Cybercrime, Sandra Quinn, bank accounts, phishing, June

“Rain drain” takes affect as Brits move abroad

The number of Britons keen to buy homes abroad has doubled in the past year, it was claimed today.

According to figures released by Barclays Buying Abroad, the “rain drain” caused by the cold, wet summer has been a major factor in the rise, along with the usual suspects of long work hours, rising UK house prices and the high crime rate.

Enquiries to the service – which helps fed-up Brits to relocate – have risen to 18,000 from 9,000 in the equivalent period last year.

Director of Barclays Buying Abroad Richard Exton said: “Brits are familiar with the idea that we only have two seasons: the winter and July.

“It seems that this year, with the terrible weather we have experienced in July and throughout the summer many people are not prepared to sit through a year-long winter and are looking for a getaway to sunnier climates.”

This summer’s rainfall has been the highest since records began almost 250 years ago.

Widespread flooding hit southern England in June and July and has cost approximately £2.5 billion in claims, according to recent figures from the Association of British Insurers.

Tags: YouTube, Widespread, Barclays Buying Abroad Richard Exton, rain, britons, long winter

Mortgage lending hits record level, says CML

Mortgage lending has hit a new high, according to latest statistics from the Council of Mortgage Lenders (CML).

Gross lending hit an all-time July record of £34.4 billion, according to figures released by the industry body today.

Although the amount is slightly down on June’s results, this nevertheless represents a 13 per cent rise on the equivalent figures for 2006.

A CML spokesperson said that the record figures did not mean that the trend was set to increase: “As we move into the autumn the cumulative effects of [interest] rate rises will become more pronounced, and we expect this to feed through to lower levels of mortgage lending as the year progresses.”

Interest rates were raised by the Bank of England in July to 5.75 per cent, the fifth such increase in a year.

Commenting on the CML’s figures, chief economist at the Royal Institute of Chartered Surveyors (Rics), Simon Rubinsohn, also counselled caution, saying that “the turmoil in financial markets will push up mortgage costs for in vogue longer term fixed rate deals and will further slow the residential property market.

“With 90 per cent of borrowers opting for fixed rate security, those who are already financially stretched will find themselves paying a higher price for the added peace of mind,” he added.

Tags: body, year, record, June, Institute, chief economist, council of mortgage lenders, peace

Insurers count costs of floods

The floods in the West Country last month, along with the Central England floods in June, have cumulatively been termed the worst in 60 years in the UK.

Now, as the waters have receded, Britain’s insurers have been counting the costs.

Aviva, owner of Norwich Union and the biggest insurance company in the country, announced last week that it faced £340 million-worth of claims, split evenly between the two deluges.

Royal Bank of Scotland, the UK’s second-largest home insurer said that the floods would cost them around £250 million.

Insurance premiums for extreme weather conditions are likely to go up nationwide, with those in areas which have previously flooded likely to be most severely affected.

Last month, the Association of British Insurers (ABI) was forced to revise its estimates upwards for the recent floods to a grand total of £2.5 billion.

According to Risk Management Solutions, the damage caused by the floods was much smaller than that wreaked by those in 1947, which would cost “between £4.5 billion and £6 billion” if repeated today.

Tags: Central England, June, West Country, bank of scotland, damage, economics, home insurance

Garden threat

Mortgage holders are set to spend £56 million on their gardens in the next three months.

That is according to research by insurance firm esure, which says that 92 per cent of us who have a garden are preparing to invest some time and money into it.

One in ten of us is prepared to fork out over £500 and esure is warning that by doing so, we are increasing the value of our household contents.

The firm warns that as we approach the longest day of the year (June 21st) our new possessions could be at risk of being stolen from the garden and if we do not have adequate insurance cover we may be forced to foot the bill.

The summer months are a peak time for garden theft but esure says that 52 per cent of homeowners have never even considered improving the security of their garden.

In addition, many people regularly leave items such as bikes and lawnmowers outside over night, tempting thieves to strike.

Nikki Sellers, head of home insurance for esure, says that many people will be spending more time outside as the weather improves but this could leave them open to theft.

“It is all too easy to retire inside as it gets darker, leaving items unsecured in our gardens or sheds unlocked as easy targets for opportunistic thieves,” she said.

“But these investments need protecting. It is imperative that everyone should get in to the habit of safely tidying away and locking up their garden gear whilst also taking reasonable care of securing their household perimeters.”

Homeowners are advised to lock up all valuable items that are left in the garden and get insurance that covers the contents of the garden.

Tags: home, night, easy targets, longest day of the year, June

Base rate should remain at 5.5%

We are likely to see interest rates rise again this summer but borrowers can sit comfortably for the rest of this month at least.

The Bank of England Monetary Policy Committee (MPC) is due to announce a base rate decision on Thursday June 7th but industry figures are not predicting another rise.

Interest rates have increased four times since August 2006, taking them to 5.5 per cent, the highest level since April 2001.

Despite many experts seeing it as inevitable that the base rate will rise again before the end of the year, Lloyds TSB says that it does not expect another rise in June.

“We may well see a rate rise before the summer is out, but a move this month is highly unlikely. We’ve seen rates increased four times since August last year and the effects of these are only just starting to show through – inflation is coming off the boil, the housing market is cooling and signs of slower activity are appearing in the retail sector,” said Trevor Williams, chief economist at Lloyds TSB Corporate Markets.

“However, it’s still too early to judge the full impact of these cumulative increases, especially those that have taken place in the past nine months.

“The most likely outcome of this month’s meeting is that the MPC will opt to hold rates and buy time to gauge the impact of recent increases, before making another move,” he concluded.

The news will be welcomed by those with credit cards, loans and mortgages.

Tags: nine months, Bank of England Monetary Policy Committee, tsb, June, rise.Interest rates, Lloyds TSB Corporate Markets, interest rates, market

Hips legal challenge “groundless”

Home Information Packs (Hips) continue to cause a storm within the housing market but it seems that they will be given the go-ahead.

Communities and Local Government (CLG) has pledged that it will continue with the planned introduction of the packs and has reacted angrily to threats of legal action.

The Royal Institute of Chartered Surveyors (Rics) this week commenced Judicial Review proceedings against CLG over a ‘failure to carry out proper consultation prior to implementing new legislation to bring in Hips’.

CLG has slammed the legal challenge and promised that Hips will become a part of the home-selling process.

“This challenge is groundless, and we will proceed with the packs being introduced on June 1st,” said a spokesman for CLG.

“This is a shocking example of a vested interest wanting to water down important environmental information.”

Meanwhile a debate in the House of Commons over the introduction of Hips ended in victory for the government and housing minister Yvette Cooper sang the praises of Hips and in particular Energy Performance Certificates.

“The certificates will give people’s homes an energy rating for the first time,” she told MPs.

“They will give people not only the rating on their home but information on what they can do about it – what their fuel bills are likely to be and how they can cut them.”

Tags: energy, June, government, shocking example, Yvette Cooper, MPs, Commons