Dollar falls as interest rates up

AA reports fall in cost of car insurance

The cost of car insurance premiums fell in the third quarter according to the AA British Insurance Premium Index, after rising steadily for several years and flattening out in early 2012. The cost of policies purchased directly from an insurance firm fell by 2.9 per cent in the third quarter but was still nearly 6 [...]

Nationwide may bid for RBS branches

There is growing speculation that Nationwide building society may be considering a bid for the 316 branches being sold by RBS group under EU rules. RBS was ordered to sell the branches under the terms of the £45 billion bailout it received from the UK government during the financial crisis. It had planned to sell [...]

Scottish Widows highlights growing gender gap in pensions

Women are saving £766 a year less than men for their retirement according to life, pensions and investment firm Scottish Widows. A new report by the firm suggests that the gender gap in pension savings has increased by 10 per cent in the last 12 months and is now at a record high level. Women [...]

Improvement seen in consumer finances

Two separate surveys have reported an improvement in household finances, bolstering optimism that the recession is coming to an end. Although Markit, the financial information services company, reported a worsening in consumer finances in October, it was the smallest deterioration in the past two years. The Markit Household Finance Index, which is designed to accurately [...]

Bank of Scotland fined over inaccurate mortgage records

The Bank of Scotland has received a £2.4 million fine from the Financial Services Authority (FSA), for failing to keep accurate records on the mortgage payments of 250,000 customers of the Halifax between 2004 and 2011. An investigation by the FSA, following a spate of customer complaints, discovered that 160,000 homeowners were incorrectly excluded from [...]

Average rent rises to all-time high

The average rent on a home in England and Wales increased to £741 a month in September, according to the latest buy-to-let index from LSL Property Services. This was 1.1 per cent higher than the average rent of £734 in August and represents a new record high. However the rate of increase has slowed, from [...]

Auto-enrolment too expensive for micro-firms

The Association of Consulting Actuaries (ACA) has called for the government to re-consider auto enrolment for the smallest firms, who might struggle with the costs of administering the scheme. From 1 October the largest companies have been required to automatically enrol workers in a pension scheme unless they chose to opt out. The scheme will [...]

Barclays increases provision for PPI claims to £2 billion

Barclays has set aside another £700 million to cover claims for mis-sold payment protection insurance (PPI) after claims reached unexpectedly high levels. This is on top of the £1 billion set aside in 2011 and the £300 million provision made in the first three months of 2012. By the end of September, the bank had [...]

Mortgage lending slowed in September

Despite more mortgages being available, mortgage lending dropped to £11.6 billion in September, a fall of 10 per cent from August and 15 per cent lower than September 2011’s figure. The availability of mortgages was boosted by the new Funding for Lending Scheme, but there was little demand from either first time buyers or people [...]

RBS initiates talks with Virgin Money over branches

Royal Bank of Scotland (RBS) is seeking a new buyer for 316 branches after a deal with Santander fell through, and is believed to have approached Virgin Money. RBS is required the sell the branches under the EU conditions attached to the £45 billion bailout it received from the government when it came to the [...]