January sales start early on the High Street

With Christmas well on its way and consumer spending levels still low due to tight financial conditions, many major retailers on the High Street have started their January sales early by slashing the prices of their goods in the hope that it will boost spending amongst consumers. Retailers are slashing prices by up to 75 percent in some cases, hoping that their bargain prices will pull in customers and reduce the risk of shattered profits over what is expected to be a bleak Christmas in terms of spending. Read more

Tags: retail, sales, year, recession, festive season, risk, industry, research

Online sales helped by the credit crunch

As the effects of the credit crunch take hold consumers are increasingly looking to the internet for bargains, one financial expert has said.

Shopsafe.co.uk said that the current trend for consumer bargain hunting was related to the tightening of purse strings brought on by the effects of the credit crunch.

Simon Crisp, director of Shopsafe.co.uk, stated that the future of online shopping was viewed to be strong with fashion and household goods being the main sectors benefiting from the increase in online spending.

“This year certainly people are looking for bargains online; they’re looking to squeeze every penny out of their budget,” he continued.

In a report from the IMRG Capgemini e-retail sales index, online sales in February were up 46 per cent on the same point last year to a record high of £4.2 billion.

Meanwhile, Marks and Spencer announced in November 2007 that their re-branded M & S Direct site has seen online sales increase by 60 per cent.

Tags: Simon Crisp, tightening, Household, financial expert, record high, retail, director, main sectors

Mortgage slow-down expected as prices rise

A slow down in the market is forecast as a result of rising mortgage prices, according to Andy Hornby, head of HBOS mortgage lender.

He warned that property owners were at risk from the fluctuations to the mortgage market and predicted that concerns regarding these changes could end in homeowners having to spend more on mortgage repayments.

Speaking to a Merrill Lynch banking conference in London yesterday, he said: “I suspect that the mortgage market is about to undergo a fundamental shift. Over the past three years we’ve seen a major decline in mortgage margins.”

He added that mortgage cost adjustment would continue on the back of “wholesale funding costs”.

Lenders’ rate increases have been widespread in the UK following the sub-prime mortgage crisis, causing anxiety for those considering taking out a loan on a house, many of whom decided not to, according to National Homebuyers.

HBOS is a retail, business, corporate banking, investment and insurance services company. It is the UK’s biggest mortgage and savings provider.

Tags: Mortgage loan, provider, conference, retail, National, HBOS mortgage lender.He, market, United Kingdom

Homebuyers ‘prudent’ over mortgages

Homebuyers are increasingly prepared to take special measures to avoid getting a mortgage that will push them to their financial limits.

As the Bank of England continues to increase interest rates, many first-time buyers are cutting back on other expenses so that they will be in a better position to cope should rates rise further.

Research by Yorkshire Bank shows that 24 per cent of buyers are keen to avoid maxing out on a mortgage and this is leading to a change in lifestyle for many.

Almost a quarter of those asked said that owning their own home is so important to them that they are prepared to give up holidays, nice cars and cut back their social life to be able to afford one.

With 77 per cent of Brits apparently expecting further interest rate rises in the next year, it is little wonder that so many people are looking ahead and do not want to strain their finances too much.

“What our survey shows is prudence, not panic – all the signs are that the market will still remain strong,” commented Gary Lumby, head of retail at Yorkshire Bank.

“But with rises in the Bank of England’s base rate and with many economists predicting a further rise if not next month, then in the near future, it is inevitable that homebuyers will become a little more cautious with their borrowing.”

The research also found that 70 per cent of buyers expect house prices to increase in the next 12 months but only 17 per cent are prepared to offer the full asking price right away.

Tags: rise, economics, yorkshire, Banking, rate, retail, first time buyers