Personal loans – strike whilst the iron’s hot

Over recent years the cost of borrowing by way of a personal loan has been spiralling, and even though the base interest rate has been at a record low of 0.5 percent for the past two years personal loan rates have remained high, especially on loans of £5000 or less. However, recent reports have suggested that the cost of borrowing has been falling, which means that consumers may now be able to get a better deal on their borrowing.

However, some industry experts do not believe that the decreases in personal loan interest rates will continue, and that the trend could quickly reverse, with rates going back up again. It is therefore worth considering looking at personal loans now if you think that you may need to take out a loan over the coming months, as you may find that if you strike now you could get a fairly good deal but if you wait around loan rates may start to rise again.

It is especially important for consumers to compare personal loan rates now that the level of interest is said to be coming down, as it increases competition and boosts the chances of being able to get a loan that is competitive and affordable. However, if the base rate increases over the coming months or lenders start to put their rates up again due to the uncertain climate many could find that they have to pay far more for their borrowing.

The internet makes it easier to compare different loans and lenders, and this means that you won’t have to do to any unnecessary hassle in order to weed out the most competitive loans. You can browse and compare loans with ease via the Internet, and you will be able to see at a glance whether the loans available are affordable for you or not.

It is important to act quickly, as many experts think that loan rates will stop falling and could start rising again, which means that you could miss out on a far more competitive rate simply because you decided to wait a couple of months before looking for your personal loan.

The rates are said to have fallen in particular on loans of over £5000, so those considering taking out a larger loan could find that they can make a significant saving on repayments due to lower interest rates by looking for a loan now rather than later.

Tags: trend, finance, unnecessary hassle, hassle, percent, base interest rate

Could energy price cuts be on the way?

A consumer campaign group, Consumer Focus, has indicated that there could be energy price cuts on the way as a result of a fall in the cost of wholesale energy. This comes as a result of one of the major energy suppliers in the UK, Scottish and Southern, stating that it could see prices falling by early 2009 as a result of falling wholesale energy prices. With energy prices having rocketed twice this year any fall in prices will be welcomed by businesses and consumers, many of whom are struggling to keep up with bills. Read more

Tags: wholesale energy, Association, Business Finance, Wholesale, energy prices, energy companies

Nationwide cuts fixed-rate mortgages

Nationwide, the UK’s third largest mortgage lender, has announced it is cutting interest rates on some of its fixed-rate mortgages by 0.3 per cent. Read more

Tags: global credit crunch, interest, building societies, credit, trend, com, fixed rate mortgages, market

Tracker mortgages growing in popularity

Tracker mortgages are growing more popular than fixed-rate mortgages as a result of expectations that the base rate of interest will fall, it has emerged.

A total of 35 per cent of borrowers opted for a tracker mortgage last month, up from 33 per cent in January, according to new research from the Council of Mortgage Lenders (CML). This figure was up from 14 per cent a year ago.

Meanwhile, fixed-rate mortgages fell to their lowest level of popularity since March 2005.

“The trend away from fixed-rate products continues as expectations of further bank base rate reductions, probably starting this week, have increased,” commented Michael Coogan, director general of the CML.

The Bank of England’s Monetary Policy Committee will meet on Thursday (April 10th) amid predictions that the current base rate of 5.25 per cent will be reduced.

However, expectations of a cut in official rates have also prompted lenders to increase their rates on tracker mortgages.

The CML also reported that the number of loans for house purchase dropped by 3.5 per cent from last month to 49,200, the lowest quantity since records began in 2002.

Tags: council of mortgage lenders, Bank of England's Monetary Policy Committee, base rate, trend, CML.The Bank, Thursday, lowest quantity, cent

Homeowners need to set aside 20% of income to pay stamp duty, say experts

The average home buyer in nearly one in three of local authorities needs to set aside over 20 per cent of their average income to pay the stamp duty bill associated with buying a new home, according to mortgage experts.

Research from Halifax reveals that in 2002 the average stamp duty bill was equivalent to more than 20 per cent of average annual full-time earnings in only one in 20 of local authorities.

Martin Ellis, chief economist at Halifax, said: “A growing number of home buyers are paying the equivalent of more than 20 per cent of local average annual earnings in residential stamp duty.

“This trend is most prevalent in the south of England. But, other parts of the country are being affected as well,” he added.

The average homebuyer in South Buckinghamshire paid stamp duty of £21,241 in 2007, equal to 49 per cent of average annual full-time earnings in the area – the highest proportion in the country.

Meanwhile, recent research from Halifax has shown that the number of owner-occupied households in England fell by 83,000 between 2006 and 2007.

Tags: south buckinghamshire, average home buyer, cent, time earnings, equivalent, research, Buckinghamshire paid stamp, trend

Over a £1bn spent on Valentine’s day

Over a £1 billion is expected to be spent on Valentine’s day, despite over half of consumers saying the day has become ‘over-commercialised’, according to new research.

Findings from research by Alliance & Leicester covering customer activity on the Valentine weekend last year indicate that debit card spending on flowers, restaurants and jewellery rose by 60 per cent compared with the previous week.

Last year men spent more than 36 per cent the normal amount in florists on Valentine’s day

Emma Walkley, senior current account manager at Alliance & Leicester, said: “Although people say Valentine’s day has been spoilt by over-commercialisation, spending patterns show that we still make an effort to celebrate it in some way.”

She added that consumer figures from last year reveal a ’spending rush’ on the day and those preceding February 14th in 2007, a trend expected to be repeated again this year.

Meanwhile, research from Halifax has shown that the average male spender is expected to pay £42 on flowers and £82 on eating out during February.

Tags: research, Valentine weekend, trend, Flower, Jewellery, week, alliance, customer activity

UK consumer confidence at all time low

Consumer confidence in the UK is at an all time low, according to figures from the Nationwide Index.

The findings show that the number of people confident about employment dropped almost ten per cent to 36 per cent in January, a drop from 44 per cent in December.

Expectations surrounding house price growth continued to fall with consumers thinking house prices would decrease by 0.2 per cent over the next six months.

Martin Gahbauer, Nationwide’s senior economist, said: “The continued downward trend in consumer confidence in January is not unexpected in light of current uncertainties about the economic outlook.”

He said that sharp falls in share prices, the rising costs of essential items and a weak exchange rate have all combined to negatively impact consumer sentiment which could be blamed for the pessimistic economic outlook.

Despite a downturn in the Expectations index, 44 of respondents believed that now is a good time to spend on household goods, compared with 35 per cent in December.

Meanwhile, Nationwide has warned credit card holders to be careful to avoid incurring charge while using their cards abroad.

Tags: economist, share prices, confidence, consumer confidence, Index numbers

Majority prefer printed bank statements

Managing your finances online may be a growing trend, but the vast majority of people still prefer to put their faith in the printed word and the postal service.

A new survey on consumer attitudes towards banking has found that almost nine out of ten people (88 per cent) still prefer to receive bank statements by mail, and that the post remains the favoured means of communicating about financial matters for 70 per cent.

Even amongst those who are keen on internet banking, 68 per cent still like to see a physical copy of their statements drop through the letterbox.

A similar proportion (67 per cent) find it easier to understand their bank statements in print than on screen.

The research has been carried out by the Henley Centre for Royal Mail.

Abi Wood, Head of Financial Marketing at Royal Mail commented on the findings, saying: “Internet banking has undeniably revolutionised modern financial services as more consumers want the accessibility it provides.

“However it is clear that traditional communication methods are still incredibly important to individuals of all age groups. Banks should continue to investigate the different and complementary roles that the different channels play for the modern consumer.”

Tags: Banking, abi, online, post, Marketing, Financial services, trend

Is Pet Insurance Worth It?

Considering the numerous pet owners in the UK, how many have pet insurance to cover their canine or feline companion? Is the money worth having pet insurance if your pet is healthy? What exactly does pet insurance cover? How much are the premiums? These are some questions to ask yourself when thinking about pet insurance. Read more

Tags: pet insurance, love, trend, pet, holiday trip

The Cost of Travel Insurance

The big decision concerning travel insurance is the question of what happens if the traveller only goes away for a few days at a time for business or pleasure, but has to pay for the policy for an entire year. Since the price per day ends up being more expensive, the yearly option is usually more affordable. Most policies require a certain amount of days, like a one day plan or a fourteen day plan, nothing in between. If a traveller is away for four days, they have to buy the nine day plan and the extra money spent is a waste for days they weren’t travelling. Read more

Tags: travel insurance, few days, Financial services, travel insurance costs, nothing, traveller

Scottish house prices slow down

The top end of the Scottish housing market is showing signs of slowing down, according to Lloyds TSB.

The Bank’s Scotland House Price Monitor (SHPM) has highlighted that the market continues to grow, but has slowed down when compared to previous figures.

Looking at the three months leading to January 31st, the SHPM showed that the average house price rose by 3.3 per cent, well below the annual rise of 11 per cent.

The biggest annual rise can be seen in Aberdeen, where there was an 18 per cent increase. Although this is a large rise, it follows a slowdown in the spring of 2006.

The figures from Lloyds make good reading for those of you looking to take out a mortgage on a property in Scotland and, although overall prices appear to be falling, the Scottish market is still doing very well.

“The rate of increase of house prices in Scotland continues at a robust pace propelled by a favourable economic background and demand for houses exceeding the supply,” said professor Donald MacRae from Lloyds TSB Scotland.

“First time buyers are showing increased interest in the market. The Scottish economy is forecast to show growth of around 2.25 per cent in 2007.”

Looking at the slowing down of price increases on some Scottish properties, Mr MacRae said that this is just a natural trend.

“There is clear evidence of a slowdown in price increases at the higher end of the market,” he commented.

“Recent increases in interest rates will continue to moderate further house price rises from these high levels. The prospect for the Scottish housing market is a gentle slowdown in the rate of price increase.”

If you want to invest in a property it may be worth considering Scotland, where the average house price is around £147,763.

Tags: favourable economic background, gentle slowdown, trend, GBP, lloyds tsb, Scottish economy

Fixed-rate mortgage fees rising

Mortgage lenders are raising their application fees for fixed-rate mortgages, as the products become more and more popular.

With interest rates currently standing at 5.25 per cent and fears among many that future rises are imminent, first-time buyers are fearful of taking out variable rate mortgages.

However, as lenders have recognised the growing trend, they have begun increasing application fees, according to MoneyExpert.com.

The average application fee has risen by 18.5 per cent since last August, with products that have a fee of at least £750 also becoming much more common.

“Homeowners are desperate to fix their mortgage rates to avoid incurring further costs caused by rising interest rates,” said Sean Gardner from the website.

“It’s the sensible option, as further rises aren’t out of the question.”

People considering taking out a mortgage, particularly first-time buyers, may find that a fixed-rate is the best option for them.

However, it is recommended that you shop around to find the best mortgage to suit your circumstances and ensure that you can realistically afford to pay the application fee.

Tags: first time buyer, Business Finance, homeowners, personal finance, application fee, fee, option, trend

New buy-to-let trend

A new trend is developing in the buy-to-let market, with people buying homes and renting them out then using the money to pay their own rent.

Many first-time buyers are finding it so difficult to buy a property in the south, and in particular London, that they have to rent, says website SpareRoom.com.

However, they feel as though they are wasting money this way, so they buy a house in a cheaper area and rent it out.

The rent they receive from this property then goes towards paying their mortgage and their own rent but, in the mean time, they are buying a home.

“We’re seeing a definite increase in young first-time buyers taking on a bigger mortgage than they can afford on their own and renting out a second room to pay for it,” said Rupert Hunt, founder of SpareRoom.

“Not everyone wants the risks that come with joint ownership. Until recently it has been tricky for people to get a big enough mortgage to buy somewhere with a second room to rent out, but things are getting easier.”

In response to this growing trend, many mortgage providers are now offering loans which take into account income earned through renting another property.

Tags: Renting, way, trend, Real estate, Politics

Internet card fraud is down

Internet card fraud fell during the Christmas period, despite a huge increase in the number of online transactions.

Figures from internet fraud-prevention specialists Early Warning show that although shopping on the net increased by 40 per cent, fraud fell.

The data has caused widespread surprise in the industry as many figures expected to see online credit card fraud increase with the number of internet shoppers.

“This is really an unexpected and encouraging first in internet fraud statistics,” said Andrew Goodwill, managing director at Early Warning.

“As e-commerce goes on rising, we are used to corresponding increases in fraudsters’ activities to capitalise on it.”

Mr Goodwill went on to say that he believes increased awareness among consumers about the dangers and safety measures associated with the internet had been a big contributing factor.

“I am encouraged by these figures and hope this is not just a blip but the start of a downward trend for internet card fraud,” he added.

Tags: internet card, online transactions.Figures, Technology Internet, Early Warning."As, trend