UK consumers saving less

Concerns about the future of the economy has led to UK consumers putting less money into their savings,

Findings from Sainsbury’s Bank show that those in work are saving 6.6 per cent of their income while those who do not have jobs are only putting away 4.8 per cent.

An estimated 16 per cent are saving less than a year ago compared with six per cent who are saving more, according to the figures.

Neil Cameron, savings manager with Sainsbury’s Finance, said: “Many people are clearly finding it difficult to save, with a worrying number unable to set aside anything at all.”

“It is concerning that many people have decreased the amount that they are putting aside in savings since last year,” he added.

On a regional basis, people in Yorkshire and Humberside are saving the least, putting aside on average 4.7 per cent of their monthly income into savings, while people in the East Midlands and Anglia are saving the most at 6.7 per cent.

Meanwhile, more research from the firm shows that spending on cars is set to decrease by £11.1 billion over the course of the next six months.

Tags: income, jobs, regional basis, yorkshire, United Kingdom, east midlands

Yorkshire Building Society opens 133rd branch

The Yorkshire Building Society is planning to increase its High Street presence by 10% over the next three years, and has recently made progress towards this goal by opening its 133rd branch in Chester.

The branch was opened amidst celebrations, with everything from champagne and white roses to town criers. Customers have already flocked to the branch to open accounts, and in light of the record number of deposits made in building societies across the UK over recent weeks officials have high hopes for the success of this newest branch.

A spokesman from the Yorkshire Building Society stated: ‘As a society, we have never veered from our main objective: to raise funds from the public via savings products that we can then lend on to those who want to buy their own homes. ‘The best way to raise those funds is through a healthy branch network. The public like this setup and I see no reason to change it. It’s not sexy, but in light of recent events at Northern Rock, it has huge customer appeal.’

The crisis with Northern Rock led to building societies enjoying huge rises in deposit levels over a matter of weeks, with worries savers taking their money out of Northern Rock and depositing it elsewhere. According to figures from the Building Societies Association there was a rise of nearly £1 billion in the number of savings deposits made in building societies following the Northern Rock crisis.

One of the customers that turned up for the opening of the new branch stated: ‘I find building societies more approachable and friendly than banks. ‘Although Chester is well banked and has its fair share of building society branches, it’s good to see Yorkshire offering more choice.’

Tom Smith
11th November 2007

Tags: savings, society, open, bank, expand, branch, building, chester, yorkshire

Yorkshire Bank faces tough decision

The Yorkshire Bank is facing a tough decision over its overdraft charges following an order made by a judge in Hull.

Over 40 cases were due to be heard last month by the judge, and these related to unfair charges that were applied to customers’ accounts as a result of exceeding their overdraft limit and for bounced cheques or returned direct debits. According to campaigners the cost of administration for this type of oversight is between £2 and £5 for the bank, but often customers were being charged up to £40 per fee.

Of the 44 cases that were due to be heard the majority were settled by the bank before being heard in court. However, seven of the cases were heard at Hull County Court with judge Iain Besford residing.

When hearing the cases the judge made a decision that means the bank will either have to settle all of the pending claims in full or will have to attend an open court and explain its charging structure in detail, explaining why customers are charged so much if it is not for profit.

The disclosure order that the judge agreed to means that the bank now has until the end of September to make its decision with regards to whether to settle the claims or whether to justify its charges in court.

Banks do not generally turn up to these court hearings, as most tend to settle the claims just prior to the case being heard in court. Lloyds TSB, however, has won two cases filed against it for repayment of bank charges.

Originally the judge had considered striking out the bank charge cases altogether following a decision by a Birmingham judge to rule in favour of Lloyds TSB earlier this year. However, having heard the cases he has now informed the bank that it must pay up or explain and justify its charges.

Tom Smith
13th July 2007

Tags: tsb, win, hull, county, cases

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, first time buyers, rate, yorkshire, economics, retail, Banking