Yorkshire bank seen increase in mortgage activity

It has been reported that the Yorkshire Bank has seen an increase in mortgage activity of late, with an increase in mortgage applications from interest parties as well as an increase in the number of mortgage applications that are being approved by the bank. Read more

Tags: increase, low base, borrowers, income households, Mortgages, yorkshire bank, May, mortgage applications

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: cbi officials, bank of england, May, job losses, industry

Homeowners flock to try and sell homes

According to a recent report many homeowners are panicking because of the ongoing drop in property values in the UK, and this has resulted in a million homes being up for sale recently. Property values have been falling for some months, and many industry officials believe that they could fall by in excess of 10% by the end of the year. Many homeowners are worried that if they wait to sell their homes they could end up losing thousand of pounds more on the value of the property. Read more

Tags: report, homeowners, Business and Economy, remortgage, property, May, Real estate appraisal

Credit card holders could face 10,000% interest on one pence

Credit card holders who have one pence on the balance of their credit cards could face being charged up to 10,000 per cent interest.

US financial service providers Citibank, who own Egg the company who laid off 161,000 customers, announced it will increase the minimum interest charge for its 900,000 UK customers from 50p to £1 in May.

This means that a customer with one pence outstanding on their bill would be charged £1 – nearly 10,000 per cent interest.

Speaking to the Times, Sean Gardner of comparison firm Moneyexpert said: “Minimum interest charges are commonplace, although the details are typically hidden deep in the terms and conditions of your credit-card application.”

New figures from the Bank of England show that the average credit-card interest rate has increased to 17.67 per cent from 16.98 per cent a year ago.

Halifax, Bank of Scotland, Intelligent Finance and Egg, impose a minimum 50p charge for customers who pay interest on their bill.

Now Citigroup and Barclays charge a minimum of one pound.

Tags: Sean Gardner, firm, May, scotland, citibank, Credit card

Mortgage shock on horizon for many

Borrowers with a fixed-rate mortgage managed to avoid the recent interest rate rises but some are set to see their payments increase.

The reason, says mortgage broker London and Country (L&C), is that those who took out a mortgage two or three years ago may be about to see their fixed-rate deals come to an end.

L&C points out that the best two-year fixed-rate mortgage available in May 2005 was available from Newcastle Building Society, with a rate of 4.49 per cent and a fee of £420.

On a £150,000 interest-only loan, a borrower would have been making monthly payments of £561.25 per month. However, once the fixed-rate deal ends, borrowers will be paying 7.34 per cent interest, taking monthly payments up to £917.50.

“The payment shock for many borrowers will be substantial when their deals to come an end and it’s important that they do all they can to minimise it,” said James Cotton, mortgage specialist at L&C.

“The advice is simple: see what new deal your lender is willing to offer and shop around elsewhere.

“Most importantly, plan ahead and don’t leave it until you’re already paying Standard Variable Rate,” he added.

Borrowers are advised to try to get the best deal when taking out a mortgage for the first time but must be prepared to pay higher rates of interest once the deal comes to an end.

Tags: broker, interest, building, May, Mortgage shock, Mortgage broker, payment, GBP