Economic recovery depends partly on continued lending

The deputy governor of the Bank of England, Paul Tucker, has recently spoken out about the future of the UK’s economy, and has stated that in his opinion the future of the economy partly depends on continued credit being extended by lenders. Read more

Tags: credit, course, News, Loans, personal finance, lenders, economic recovery

Icesave customers get 100% guarantee

Amidst all of the financial chaos that has been taking place over recent days, the Chancellor of the Exchequer, Alistair Darling, has issued some good news to consumers that had money saved with the collapsed Icelandic Internet bank, Icesave. Darling has announced that savers with money with Icesave will receive a 100% guarantee on all of their savings, so those with more than the £50,000 threshold will not lose any of their money as a result of the collapse. Read more

Tags: chancellor of the exchequer, top, GBP, treasury official, Business Finance, News, exceptional circumstances

Cash from some Icelandic banks gone into the abyss

According to recent reports many of the UK savers that tried to transfer their money from the collapsed Icelandic banks, Icesave and Kaupthing Edge, have discovered that the money has not hit the accounts into which it was transferred. Many consumers who had put savings into the Icelandic banks due to the high rates of interest paid started to transfer their cash in the run up to the collapse following rumours that sparked fears over the collapse, but in some cases the money has been transferred out of the Icelandic account but not appeared in the recipient account. Read more

Tags: service, News, Kaupthing Bank, fears, reappear, rumours, apacs, lawful bank instruction

Good news for those with Post Office savings accounts

Many people in the UK have Post Office savings accounts, with many preferring these accounts because they are part of a trusted name. According to recent reports those with Post Office savings accounts will now be able to enjoy greater peace of mind than ever, and this is as a result of changes to the banking system in Ireland. Read more

Tags: greater safety net, consumers, savings, News, savings accounts, result, post office, peace of mind

Consumers need to spend carefully at Christmas

Consumers should be careful with their Christmas spending and ensure they do not put more than they can afford to pay back on credit, warn financial experts.

The Consumer Credit Counselling Service has said, that despite it being the festive season, people still need to remember that money spent on credit has to be repaid over the course of the year.

James Ketchell, spokesperson for CCCS, said: “The amounts you put on for Christmas spending might be done in good faith and for good reasons, but they do have to be measured by common sense too.”

CreditExpert.co.uk has predicted that, despite recent interest rates rises and the credit crunch, the majority of Christmas consumers will not be reducing their spending.

The news comes even though 29 per cent of respondents admit money is tighter this year.

According to statistics from Credit Action, the total personal UK debt stood at £1,380 billion at the end of September.

Tags: economics, spending, News, sense, consumers, respondents admit money, year, statistics

BoE reports increased lending to individuals

The Bank of England (BoE) has reported a rise in lending in its Lending to Individuals figures for September this year.

It showed the increase in total net spending to be higher than August by £11.2 billion (0.8 per cent).

Within this figure, net lending secured on dwellings was up by £9.8 billion, up from an £8.5 billion increase in August

The number of remortgaging loans approved in September was up from August at 101,000, with loans for other purposes also on the rise at 67,000

Meanwhile the annualised growth rate increased by 0.1 per cent, despite the twelve-month growth rate seeing no changes, staying at ten per cent.

In related news, the mortgage market has taken a severe blow from recent credit squeeze, with lending at a seven-year low this month, falling 27 per cent last month from September’s figure for 2006.

Experts suggest that this could mark an eventual end to the housing boom and lead to a cool-down in the market and an easing off of house prices.

Tags: bank, Subprime crisis background information, bank of england, mortgage, Individuals figures, blow, News

You could get a better deal with annual travel insurance

According to officials from MoneyExpert buying annual travel insurance cover could work out cheaper than opting for single trip cover, although experts do warn that consumers need to carefully check the policies to see what is and isn’t covered before making any commitment.

According to researchers from MoneyExpert some annual travel insurance policies can work out cheaper than single trip policies, but consumers must check that they are adequately covered.

One MoneyExpert official stated: “Holiday makers often think that single trip cover is simple and cheap, but the truth is it’s often not best value for money. You are certainly paying for a quick fix. As with all insurance, the quality of cover will always vary so like-for-like comparisons are quite difficult to make. Nevertheless it remains the case that you can get annual travel insurance for the whole family without breaking the bank. Focusing on price alone can mean holidaymakers will be left with insurance that is not worth the price. Insurance policies are only tested when you need to make a claim. You don’t want to find out when you are making a claim that you’ve saved money at your expense.”

MoneyExpert officials have warned that although it can be cheaper to take out annual cover, consumers should take into consideration the quality of the cover as well as the price. It is important to ensure that you compare different policies, and know exactly what you are and are not covered for in order to ensure that you get proper value for money with your travel insurance policy.

According to Sean Gardner from MoneyExpert: “Average prices provide a guide as to what to look for. It is then up to holidaymakers to probe a little deeper to find the policy that suits them best.”

Tom Smith
26th May 2007

Tags: News, policy, Insurance, trip, travel, single, cheaper, annual, value