The changes brought about by debit cards
June 4, 2007 by admin
Filed under News, News-Banking
The debit card turned 20 on June 3rd and the banking industry has been looking back at how our lives have changed as a result.
Apacs, the UK payments association, has released a report called 20 Years of the Debit Card and it highlights how the cards have allowed our lives to alter in the past two decades.
Barclays was the first UK bank to provide customers with a debit card back in 1987 and 20 years on, 84 per cent of the adult population now owns one.
A total of 41 million people hold a debit card, a massive increase on the 27.8 million who had one in 1996.
The popularity of debit cards continues to grow, with Brits spending £194.9 billion on their cards in 2006, five times what we spent on them in 1996.
“It’s hard now for most of us to remember what life was like before the debit card, as it’s become one of those things we’re unlikely to leave home without,” said Jemma Smith from Apacs.
“Before 1987, most of us were totally reliant on cash or cheques, and although credit cards were used in supermarkets at that time, they only made up six per cent of transactions.
“Today, cards account for 66 per cent of supermarket spending, and most of this is on debit cards. In fact, over a third of all debit card transactions are made at the checkout,” she added.
It seems that debit cards will continue to be popular among consumers in the years to come, with spending on them expected to reach £400 billion by 2016.
Mortgage application fees on the rise
March 19, 2007 by admin
Filed under News, News-Mortgages
The fees charged for a mortgage application have almost doubled in the last three years, according to website Find.co.uk.
Figures, obtained by Defaqto, show that the average application fee for a fixed-rate mortgage now sits at £611, a massive increase on the £334 that was charged in February 2004.
The disparity between the highest and the lowest fees is also more pronounced in 2007 than it was in 2004.
Three years ago the cheapest was £149 from Darlington Building Society, while the most expensive was £2,5000 charged by Bank of Scotland Mortgages Direct.
In 2007 the smallest fee is £49, charged by Halifax, while the largest is £2,499 which is charged by Bank of Scotland.
Kate Marsden, marketing director at Find.co.uk, commented that those who are taking out a loan to buy a home need to do their homework first if they want to get the best deal.
“Borrowers need to do their sums to calculate the total cost of a mortgage, including all fees, so they can compare like with like when assessing different deals,” she said.
“After all, that upfront mortgage application fee could be your redecorating fund.”
If you are looking to get a mortgage make sure you shop around for the deal that is best suited to you.
