Slowdown in insurance price increases

Over the past year many drivers in the UK have been hit hard by the rising cost of petrol, and to add to their misery huge increases in vehicle insurance have also been put into place as motor insurance firms struggle to recoup losses resulting from increased claims and investment losses. This has made it increasingly difficult for drivers to keep their vehicles on the road.

However, it has been reported recently that whilst the cost of vehicle insurance is still on the up the price increases have started to slow down, which will come as a relief to many drivers who are due to renew their policies and have been concerned about how much more this will cost.

In the third quarter of this year the cost of insurance is said to have increased by 8.6 percent, taking the average cost of comprehensive cover to £650. The increase during the previous quarter came to 14.2 percent, which was much higher than the increase for the three months to the end of September. However, whilst the increase in the cost of cover has slowed down the average cost of cover is still around 37.5 percent higher than a year ago, with the increase for younger drivers taking out third party, fire, and theft cover coming in at over 54 percent.

One official involved in the research into price increases on motor insurance stated: “The price corrections that have been taking place over the past year or so have been essential to getting many private motor insurers back on an even keel after poor 2009 results. However, the level of increases is starting to slow down, with each month in the quarter showing flatter price rises than the previous one.”

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Homeowners struggle to get better mortgage deals

It has been revealed in a recent report that many homeowners across the UK are struggling to get new and more affordable mortgage deals, as the recession and the difficult financial climate results in lenders still being very careful about their lending criteria. Read more

Tags: report, struggle, better mortgages, Mortgages, attitude, Mortgage loan, homeowners, cheaper finance

Interest rates kept on hold for another month

Following the Monetary Policy Committee meeting that was held last week the Bank of England has announced that the base rate is to be kept on hold at 5% for yet another month. This signifies the fifth month in a row where the base rate has remained unchanged, as the central bank and members of the powerful MPC struggle to deal with both soaring inflation levels and a slowing economy.
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