Watchdog said regulators dithered over intervention

A consumer watchdog has recently claimed that regulators spent too much time dithering over intervention when it came to regulations, which resulted in failure to protect consumers when it came to sectors such as finance, food, energy, and water. Read more

Tags: Consumer Focus, number, report, finance, regulation, moment, Rating Regulators report

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

Credit squeeze hitting savers

Consumers are increasingly feeling that they are unable to save as much as they might like to due to the current economic downturn, according to Nationwide Building Society.

Matthew Carter, Nationwide director for savings, said that although three in four people believe it is important to put money away in a savings account, some do not feel “they can afford to save as much as they need to” because their finances are being squeezed by the credit crunch.

New research from the building society has revealed that 57 per cent of people would like to be able to save more than they are currently doing.

Mr Carter pointed out that it is a good time to save at the moment because there are a number of accounts with attractive rates.

“The products available mean it’s a good time for savers so it’s incredibly unfortunate that would-be savers haven’t the spare money to put aside.”

Meanwhile uSwitch.com has said that the credit crunch and rising inflation are making life “tougher” for many people.

Tags: time, matthew carter, Business Finance, economics, Business and Economy, consumers

Change your lifestyle to get good credit report, advises expert

People who have had their credit card applications turned down should re-evaluate their lifestyles and have a close look at their finances, Fool.co.uk has said.

David Kuo, head of personal finance at Fool.co.uk, said that people are often refused credit because they have too much debt compared to their income or because they have previously defaulted on credit card or other payments.

Earlier this month, MoneyExpert.com reported that 18,000 credit card applications are being refused every day and one in 14 people (seven per cent of the population) have had a credit card application rejected in the last six months – a total of 3.24 million applications.

According to a new survey by Citizens Advice, record numbers of people are seeking help with financial difficulties and many are struggling to pay their essential household bills.

“People need to re-evaluate their own lifestyles at the moment, have a look at their own finances and if someone turns you down for a credit card then ask yourself: ‘Why?’ The answer is in your credit report,” says Mr Kuo.

Tags: home, moment, total, advice, Credit counseling, answer, lifestyles

Buy-to-let mortgage market affected by credit crunch

The UK’s buy-to-let mortgage market is being adversely affected by the recent credit crunch, according to a financial website.

Research from Moneyfacts.co.uk indicates that it is becoming increasingly difficult for potential property investors to obtain a buy-to-let mortgage as more and more lenders are raising the cost of taking out such a loan.

It is also thought that some lenders have decreased the number of products they have available for potential borrowers.

“The trend over recent years has been a falling rental income cover requirement, so with lenders reversing this trend, it’s a definite sign that some are taking a more cautious outlook,” commented Moneyfacts mortgage expert Julia Harris.

Nonetheless, she did note that while the buy-to-let market is “taking a battering at the moment” if you are prepared to look “there are still some very competitive deals to be found”.

“Perhaps lenders are just taking a breather, giving them time to evaluate the market and perhaps re-launch with re-priced products, which will more than likely be at a higher rate.”

Tags: market, outlook, borrowers, moment, launch, rate, property investors, property

Prepared for a split?

It may be Valentine’s Day but nobody seems to have told the people at Alliance & Leicester.

The bank has today (February 14th) issued a warning to couples up and down the country, telling them not to get too carried away with their romantic feelings and take a bit of time to consider what could happen should they split up.

According to the bank, 87 per cent of couples are happy to make major joint purchases together, but just four per cent of these people have agreed what will happen to them following a split.

In addition to this, 50 per cent own a home together, while 56 per cent have joint debts. All of this, according to Alliance & Leicester, can lead to financial headaches and elongated heartache if the relationship begins to fizzle out.

“It is the tragic truth that the cost of splitting up can often last longer than the associated heartache,” said Richard Al-Dabbagh, senior personal loans manager at Alliance & Leicester, who admitted that discussing life without your current partner is “hardly romantic”.

“This research shows the huge amount of uncertainly that couples have as to who gets what,” continued Mr Al-Dabbagh.

“It seems that too many people are getting swept away in the moment and buying things jointly with no thought about what happens in the future. The financial implications of starting again after a split can be major.”

Alliance & Leicester says that the average cost of starting a new life following the end of a relationship is around £13,500.

Couples are advised to carefully consider their future finances and any difficulties that they may encounter should the worst happen.

Tags: life, personal loans, senior personal loans, major joint purchases, moment