First time buyers could benefit if banks were protected with insurance

For many first time buyers in the UK the dream of homeownership is one that has slipped from their grasp completely, with lenders either demanding huge deposits that first time buyers simply don’t have or refusing to offer a mortgage loan at all. Many first time buyers have been frozen out of the market by cautious banks who do not want to take on the risk of defaults with a high loan to value loan.

However, one major banking group has said that the number of loans granted to first time buyers with high loan to value ratios could increase hugely if insurance companies would offer banks cover that would protect them against defaults. The claim was made by officials at Lloyds Banking Group, who said that the number of first time buyers could double if this sort of insurance cover was made available.

An official from the Council of Mortgage Lenders, Michael Coogan, said recently that he had previously urged the housing minister, Grant Shapps, to look at making improvements by encouraging a ‘more active mortgage insurance market’ which would provide protection to lenders and make them more able to extend low deposit mortgage borrowing for first time buyers. The cover would be mortgage indemnity insurance and would allow the borrower to claim back part of the loss if a person defaults, is repossessed, and then the property is sold for less than the amount owed on it.

One official from Lloyds TSB said: “There’s been a lot of conversation recently about mortgage indemnity and whether it’s a way to manage the transference of risk. You could be missing an opportunity to double the first-time buyer market.”

Tags: tsb, mortgage, property, mortgage borrowing, value loan, lloyds tsb

Scottish consumers want more choice when it comes to banks

According to a recent report consumers in Scotland would be keen to see increased competition when it comes to High Street banks, and would like to see a greater choice of High Street banks. A survey was carried out by accountancy firm Deloitte, and the results showed that consumers would like to see more banks entering the market so that they have more choice with regards to which bank to use.

This comes despite the fact that consumer confidence in the banking industry is still low following the global financial crisis and the recession. However, whilst consumers are looking for more choice when it comes to the banking industry it also emerged that many would be worried about handing their money over to a new entrant in the market, especially in the current financial climate.

The Independent Commission on Banking has already launched an investigation into the state of competition in the UK’s banking system, and there is particular concern over competition amongst banks in Scotland because the Royal Bank of Scotland and Lloyds TSB are the dominant players in the sector.

The survey showed that around 30 percent of Scottish consumers wanted to see more choice when it came to High Street banks, and around 17 percent have switched some part of their banking to a rival provider, such as their savings accounts or mortgages. Deloitte officials said that these factors showed that there was room for new entrants to the banking sector in Scotland.

One official from the accountancy group said: “Our findings suggest that consumers will look to more established and recognised brands who extend into banking, with one in 10 saying they would be happy to bank with any large ‘household brand’. Further, consumers are more likely to take out certain products such as savings accounts from new entrants, but remain cautious about committing to longer term products such as mortgages.”

Tags: savings accounts, confidence, high street banks, bank, lloyds tsb, whilst, official, recent report

False sense of security for consumers being asked for minimum repayments on credit cards

Experts have recently expressed concern that many credit card customers may be getting lulled into a false sense of security as a result of credit card companies asking for very low minimum repayments on their credit card balances. Read more

Tags: Credit card, lloyds tsb, debt, credit, Lloyds Banking Group PLC

More job cuts at Lloyds TSB

Despite becoming what was described as a super-bank following its takeover of troubles banking group HBOS, Lloyds TSB has announced a fresh round of job cuts earlier this month, with the announcement that it would be closing all of its Cheltenham & Gloucester branches. Read more

Tags: unrest, Financial services, branch, lloyds tsb, job cuts

Don’t Get Ripped Off On Your Holiday This Year

It is possible that your holiday may cost you more money than you planned on spending this year. With hidden bank charges this could amount to an extra £300. Read more

Tags: currency exchange, overdraft, holiday money, Visa Inc., US, exchange rates, tsb, lloyds tsb

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, various industry groups, hbos, lloyds tsb, institute of chartered surveyors, different reasons, mortgage lenders

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

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, lloyds tsb, northern rock, hbos, competition, savings accounts

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

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: tsb, annual costs, lloyds tsb, hbos, cost, one billion pounds, government

Bank savings interest rates start to come down

The interest rates being offered to savers with some banks have already started to fall following the recent base rate cut from the Bank of England. Following the latest Monetary Policy Committee meeting early in December the Bank of England announced that interest rates would be falling by 0.25% taking the rate from 5.75% to 5.5%. This followed a series of five interest rate rises between August 2006 and July 2007, after which there were several months where the interest rate remained unchanged at 5.75%. Read more

Tags: base, saving account, United Kingdom, recent base rate, interest rtae, bank of england, lloyds tsb, certain level

Mortgage perks are ‘few and far between’

With banks tightening their lending criteria due to the current turmoil in the financial markets, borrowers should not expect to find many extra perks in their mortgage deals, according to Moneyfacts. Read more

Tags: head of mortgages, lloyds tsb, Miles, bit, gimmicks, mortgage incentives, additional 50 air, Mortgages

Lloyds: People should check garden insurance

An insurance expert has said today that people make “all sorts of claims” on policies for garden items, urging people to check that their insurance covers things that they might not have considered.

People have made claims for items of clothing being stolen from washing lines, fire damage from barbeques and even stone paving being stolen from a garden, says an insurance expert Jonathan Wadd.

According to Lloyds TSB Insurance, 18 per cent of people have garden items worth between £1,000 and £3,000 and 55 per cent have never checked their insurance policy to make sure it covers their garden items.

Mr Wadd advises people to check their policies as they provide different levels of insurance.

“There’s a quality kite-mark out there for financial series products, which is a de facto five-star rating, so if you look out for a product with that kind of rating it’s more likely to meet your needs,” Mr Wadd commented.

Tags: expert, Accounting scandals, facto five-star rating, stone, lloyds tsb, Lloyds TSB Insurance, lloyds, garden items.mr wadd

Homeowners urged to prepare for winter

With Britain’s wettest ever summer confirming that people are no longer safe from “extreme weather” at any time of the year, Defaqto has urged homeowners to check that their buildings and contents policies offer adequate levels of cover.

The independent financial research company warned policy holders to pay particular attention of exclusions incorporated into their buildings and contents policies, particularly those which might concern storm damage or flooding.

Although storm and flood damage is usually standard in most contents policies, they do not all include “contents in the open” such as garden furniture, Defaqto warned, revealing also that nearly all buildings policies exclude cover for weather damage to fences, gates and hedges.

Mel Gray, senior researcher at Defaqto, said: “A lightning strike could set your property on fire, resulting in your home and all your possessions being destroyed.

“So it’s essential that people check that the sums insured under their buildings and contents policies are adequate to cover such a catastrophic event.”

Last week, Lloyds TSB Insurance urged people to act quickly if they need to make a claim for damaged properties, following the tornadoes that wreaked havoc in Hampshire, Warwickshire, Bedfordshire and Derbyshire.

Tags: lloyds tsb, tornadoes, Product Issues, policy, home insurance, event

The Big Four not up to scratch state experts

Industry experts have stated in a recent report that the four biggest UK banks are not living up to required standards when it comes to offering value and service to customers, despite the fact that they are raking in huge profits each year. Read more

Tags: which, bank accounts, lloyds tsb, natwest, barclays

Lloyds TSB loans help start-ups

Recent reforms to the Small Firm Loans Guarantee (SFLG) have led to the possibility of more focussed funding to small businesses, high street bank Lloyds TSB said today.

SFLG is a government promise against default in certain circumstances.

Whereas previously available to all businesses, it is now on offer exclusively to those companies in their first five years of trading, which Lloyds head of communications Stephen Pegge said was “where it is most needed”.

The maximum amount which could be claimed was previously £100,000 for start-ups. Now, as a result of the sharper focus, they can claim £250,000.

Mr Pegge said: “It’s not that there were exclusions of start-ups that have suddenly been lifted; it’s mainly that the long-established businesses can no longer borrow. There’s more of an emphasis on start-ups. And perhaps some bigger start-ups can get more money than they previously could have got.

“I think it’s true to say that where businesses need it most – and are least likely to have security to support their applications – are in the early years,” he added.

Tags: focussed funding, high street bank, Uninterruptible power supply, circumstances, government

NatWest launches online multi-currency system

The launch of NatWest’s new ibanking product has been successful, the offshore banking provider said today.

An internal survey of 500 customers showed seven-in-ten saying that the product made them more confident about banking online.

ibanking is a multi-currency banking product which is conducted online. Customers can therefore access their account and transfer funds from anywhere in the world, and view their details through entering their customer number, PIN and password.

Head of NatWest International Personal Banking Julian Gouge said: “We recognise that online security is a key concern in today’s society and the ibanking system gives customers the reassurance they need when making transactions and controlling their finances.

“Whether you are enjoying yourself on holiday in Jamaica or working in Japan, ibanking allows you to make payments and manage your finances within seconds at any time of the day or night.”

Offshore banking products for customers are provided by many other high street banks in Britain, including Lloyds TSB and HSBC.

Tags: lloyds tsb, hsbc, Offshore bank, saying, Lloyds Banking Group, today, Password, customer

Student debt rises again

Student debt levels are being ramped up still further, a worrying new survey claims today.

Run in conjunction with high street bank Lloyds TSB, the Push annual survey says that those who started at university last year can expect to owe nearly £17,500 by the time they leave.

Even more worrying is the report’s claim that this year’s freshers face a £20,000 bill for studying.

Furthermore, while the national average student debt lies at £13,000, the £20,000 barrier has already been breached at nine elite campuses.

Catherine McGrath at Lloyds TSB said: “Students face higher levels of debt than ever before and with the added pressures of escalating house prices and increased competition for graduate jobs, it’s essential that they find ways to keep their student debt to a minimum.”

Johnny Rich at Push added: “This increase is not just another rise. Some students are facing real financial hardship. Even so, the advantages of having a degree still vastly outweigh the costs.”

The Push survey was the largest ever conducted on the subject of student finance.

Face-to-face interviews were conducted by its pollsters with over 2,000 students at 130 faculties around the UK.

Tags: worrying, lloyds tsb, finance, survey, today, Johnny Rich, debt levels, bill

Brits expect rates rise

The majority of Brits are expecting interest rates to rise again this year.

Lloyds TSB has published its Consumer barometer in which it revealed that most of us (77 per cent) are fully expecting another increase.

This is bad news for those with a mortgage, loan or credit card, however, the fact that most borrowers are expecting a rise may help them to be properly prepared.

Confidence in job prospects and job security fell during May, with more people believing that their position is vulnerable compared to the month previous.

“Last month’s interest rate rise did little to convince consumers that rates had reached a peak,” said Trevor Williams, chief economist at Lloyds TSB Corporate Markets.

“In line with the prevailing opinion of the financial markets, consumers believe rates will increase further this year.

“We’re just beginning to see the impact of May’s rate rise on consumers with sentiment on job security and prices starting to cool.

“Even so, there is still some way to go before the Bank of England will be reassured – they have emphasised that for inflation to stay low, inflation expectations must be anchored at low levels,” he added.

Borrowers concerned that interest rates are likely to increase in the coming months should try to account for a rise in repayments when budgeting.

Tags: Brits, cent, lloyds tsb, Brits expect rates, Financial services

Bank charge victory for Lloyds TSB

One of the UK’s banks has made history by being the first to have its banks charges upheld in the fight against unfair and unlawful bank charges.
Read more

Tags: bank charges, lloyds tsb, charge, bank fees, banks, none, position

Scottish house prices grow

Those of you considering taking out a mortgage on a property in Scotland may want to act quickly after prices in the country recently spiked.

Figures from Lloyds TSB Scotland show that house prices in Aberdeen, Edinburgh and Dundee increased in the last quarter.

The reasons behind this are varied, with Lloyds putting it down to a rise in mortgage transactions, a low number of homes on the market and a rush to take advantage of fixed-rate deals as interest rates rise.

The average property price in Scotland rose by 6.8 per cent in the three months to April 30th, putting the average price at £154,344.

“Average prices [in Scotland] are some three quarters of the UK level and continue to be propelled by a combination of favourable economic background and demand for houses exceeding the supply,” commented professor Donald MacRae, chief economist at Lloyds TSB Scotland.

“Recent rises in interest rates will have a slowing effect on these house price increases. This latest surge is expected to moderate and may be followed by a decrease in the next quarter.

“This latest increase in Scottish prices may well be the last surge before the much forecasted slowdown,” he added.

The biggest house price increases were seen in Aberdeen where the year-on-year rise was 25 per cent.

Tags: professor donald macrae, Economic history, £154, lloyds tsb, aberdeen, increase, uk, edinburgh

Scottish house prices slow down

The top end of the Scottish housing market is showing signs of slowing down, according to Lloyds TSB.

The Bank’s Scotland House Price Monitor (SHPM) has highlighted that the market continues to grow, but has slowed down when compared to previous figures.

Looking at the three months leading to January 31st, the SHPM showed that the average house price rose by 3.3 per cent, well below the annual rise of 11 per cent.

The biggest annual rise can be seen in Aberdeen, where there was an 18 per cent increase. Although this is a large rise, it follows a slowdown in the spring of 2006.

The figures from Lloyds make good reading for those of you looking to take out a mortgage on a property in Scotland and, although overall prices appear to be falling, the Scottish market is still doing very well.

“The rate of increase of house prices in Scotland continues at a robust pace propelled by a favourable economic background and demand for houses exceeding the supply,” said professor Donald MacRae from Lloyds TSB Scotland.

“First time buyers are showing increased interest in the market. The Scottish economy is forecast to show growth of around 2.25 per cent in 2007.”

Looking at the slowing down of price increases on some Scottish properties, Mr MacRae said that this is just a natural trend.

“There is clear evidence of a slowdown in price increases at the higher end of the market,” he commented.

“Recent increases in interest rates will continue to moderate further house price rises from these high levels. The prospect for the Scottish housing market is a gentle slowdown in the rate of price increase.”

If you want to invest in a property it may be worth considering Scotland, where the average house price is around £147,763.

Tags: trend, favourable economic background, lloyds tsb, GBP, gentle slowdown, Economic history, Scottish economy

Apacs introduces new payment system

Making payments over the phone and online will soon become a quicker process, thanks to the implementation of a new payment system.

The UK payments association Apacs has revealed that the new system is on track and it believes that those doing their banking online and over the telephone will enjoy using the new system.

Apacs says that the UK will now be brought up to speed alongside the frontrunners around the world when it comes to making payments.

Bankers can expect to see payments made almost in real-time, removing the hassle, and sometimes confusion, of waiting for money to enter or exit your account.

“This service will be great for any customer wanting to move money quickly – perhaps to pay a bill or move money between accounts,” said Paul Smee, chief executive of Apacs.

“Like the internet, it will be available all day, and will move a payment within a few hours and on any day of the week.”

As well as online and telephone banking, the new system will speed up the movement of standing orders.

Apacs claims that standing orders will be processed within the same day, a vast improvement on the three days it currently takes.

So far, a host of major banks are onboard with the scheme, with HSBC, Lloyds TSB and Barclays among the 13 to get involved from the very beginning.

Tags: service, apacs, Economy of the United Kingdom, customer, scheme, chief executive of Apacs., lloyds tsb, Business Finance