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Tuesday 09th of February 2010

Latest Loans News

The latest news on loans and lending:

January 22, 2010

Are lenders loosening their purse strings?

by David Masters
Are lenders opening their purse strings?
Interest rates on personal loans are finally starting to fall. The average interest rate on the top ten loan deals has fallen to 8.35%, the lowest level since the Bank of England reduced the base rate to 0.5% last March. When the Bank of England first lowered the base rate, mortgage and current account providers followed suit, while personal loan rates detached themselves ...



January 15, 2010

Microfinance loans to help needy in Bahrain

by David Masters
Microfinance loans to help needy in Bahrain
A new microfinance bank in Bahrain is set to help thousands of needy families. The Family Bank, a joint initiative between Bahrain's Social Development Ministry and the Grameen Bank, will offer loans of between 150 and 7,000 Bahrain Dinars (between £250 and £11,500). "The idea is to make needy and creative Bahraini families self dependent by helping them set up their own ...



January 7, 2010

Nationwide introduces low personal loan rates

by Kay Murchie
”Nationwide
Those wishing to consolidate their dates after the expensive Christmas period may be interested to learn about the Nationwide’s new loan deals, which were launched earlier this week. Nationwide has introduced a new personal loan rate of 7.6% APR typical for loans of between £7,500 and £14,999 for up to five years for its main FlexAccount customers. According to the Nationwide, this ...



November 30, 2009

Savings down as consumers opt to repay debt

by Kay Murchie
”Savings
Figures from the Building Societies Association (BSA) have revealed that consumers are opting to repay debt rather than save amid the historically low interest rate environment. According to the BSA, savings balances held by building societies fell by £-929 million in October compared to an increase of £545 million a year ago, when interest rates stood at 4.5%. Excluding any ...



October 28, 2009

Car loans rise following launch of ‘cash for bangers’ scheme

by Kay Murchie
”Car
Research from Sainsbury’s Finance has found that since the launch of the Government’s scrappage scheme in May, an estimated £61.2 million of personal loans per month have been taken out to purchase cars, compared with a monthly average of £44.7 million in 2009, prior to the scheme. The scheme, which pays consumers £2,000 to get rid of ...



October 5, 2009

Triodos increases UK lending

by David Masters
Triodos increases UK lending
Ethical bank Triodos increased its lending in the UK by nearly one third in the first half of this year. Current lending by the bank rose to £223 million, with a further £82 million in loan commitments that have yet to be drawn down. This £305 million total represents an overall lending increase of 29% compared to the first half of 2008. Customer funds held at ...



October 2, 2009

Triodos to raise €90m for ethical lending

by David Masters
Triodos to raise €90m for ethical lending
Triodos Bank has announced plans to issue €90 million of new shares. Money raised from the shares will be used to provide loans to sustainable projects. Set up in 1980, Netherlands-based Triodos provides loans to environmentally-friendly projects such as wind farms and organic agriculture. Since the credit crunch, the company has seen an upsurge in interest in its sustainable approach to banking. Customer numbers ...



September 10, 2009

Consumers see few benefits from low base rate

by David Masters
”Consumers
Consumers have seen very little benefit from the Bank of England holding its base rate at a record low of 0.5% for six months, a consumer advice site pointed out this week. Interest rates on savings accounts have dropped, while rates on mortgages, credit cards, and personal loans have continued to rise, said Moneyfacts.co.uk. Research by the site found interest rates ...



September 3, 2009

FSA reports surge in finance complaints

by Kay Murchie
”FSA
For the first time ever, the Financial Services Authority (FSA) has published figures showing the number of complaints made to firms in the financial services industry in the 2006-2008 period. The data has revealed an enormous increase in complaints about banking and loan products, revealing a 122% increase - from 608,620 at the beginning of the second half of 2006 to 1.3 ...



August 25, 2009

Rates soaring on personal loans

by David Masters
”Rates
Consumers taking out a personal loan are "paying through the nose" due to soaring interest rates. Banks are now charging an average APR of 10.32% on personal loans even though the Bank of England's base rate has been held at a record low of 0.5%. This compares to an average personal loan APR of 8.71% in 2004. "Despite the Bank of England slashing Base Rate ...



July 26, 2009

Graduates too poor to pay back student loans

by David Masters
Graduates too poor to pay back student loans
Half the university students who graduated since tuition fees were introduced are too poor to pay back their student loans. Of the 1.4 million graduates who started university after 1998, 702,000 are earning too little to pay back debt accrued whilst studying. Repayments are triggered when graduates start earning at least £15,000 per year; over half a million graduates have never ...



July 21, 2009

Lending to businesses falls for second consecutive month

by Kay Murchie
”Lending
In its latest "Trends in Lending" report, the Bank of England said the flow of credit to British businesses fell to £3.4 billion in May and followed a drop of £6 billion the previous month. During 2007, the normal levels of lending were £7 billion per month and £4 billion in 2008 - when the credit crunch was well and ...



June 23, 2009

M&S gives 10% cashback on personal loans

by David Masters
M&S gives 10% cashback on personal loans
M&S Money is offering 10% cashback to new customers taking out a personal loan. Borrowers will be given a 10% refund on the interest they've paid once their final repayment has been made. The offer is available until 11 August, and applies to loans paid back over a period of at least 36 months. Customers who repay the loan early will not receive ...



June 11, 2009

Eight-million percent loan shark jailed

by David Masters
Eight-million percent loan shark jailed
A ruthless loan shark who charged his victims interest at up to eight million percent has been jailed for eight months. Ian Jenkins, 43, targeted homeless people in Gloucester with illegal loans to fund their drug and alcohol habits. Taking personal documents and pin numbers as security, he charged 30% interest per day on the loans - £3 per day for every £10 borrowed. Jenkins ...



June 9, 2009

HSBC takes responsible lender accolade

by David Masters
HSBC takes responsible lender accolade
HSBC this week secured the title of Responsible Lender of the Year at the Credit Today awards 2009. The commercial and consumer lending magazine applauded HSBC for its conscientious attitude towards lending. Joe Garner of HSBC UK said the bank is “proud” to be recognised for its “approach to responsible lending”. “To us, responsible lending is about knowing your customers so we make informed lending ...



June 1, 2009

FSA bans lenders from selling PPI

by David Masters
FSA bans lenders from selling PPI
The Financial Services Authority (FSA) has banned lenders from selling payment protection insurance (PPI) alongside unsecured personal loans. Starting today, banks and other loan providers are no longer allowed to sell PPI, the FSA has ruled. “No firms will be selling single premium PPI on unsecured personal loans from today following FSA intervention and action with the industry,” the FSA said. The decision follows ...



Loan sharks set to profit from recession misery

by David Masters
Loan sharks set to profit from recession misery
Financial difficulties caused by the recession will drive up the number of consumers borrowing money from illegal lenders and loan sharks, the Money Advice Trust (MAT) warned this week. Brits seeking a quick cash injection will be tempted by the lure of easy money that loan sharks appear to offer. “It could be that someone is worried about not being able ...



May 14, 2009

Student loan interest payments at 0%

by Peter Charalambous
”Student
The Government has announced this week that 2.5 million students will pay 0 percent interest on student loans from September. However, this slashes the hope that student loans, which are linked to the Retail Prices Index which has fallen to -0.4 percent, would mean that loans would be reduced accordingly. The Student Loans Company has stated that the decision was taken due ...



May 8, 2009

Nationwide cuts rate on personal loans

by David Masters
”Nationwide
Nationwide Building Society has cut the interest rate it charges on personal loans between £7,500 and £14,999. Typical annual percentage rate (APR) for newly taken out loans has been reduced from 8.2% to 7.9%. By comparison, RBS offers a typical APR of 8.9% for loans of this amount, whilst HSBC's typical APR is 9.9%. "With this typical rate, Nationwide remains lower than all high ...



‘Staggering’ loan rates up 44% in two years

by David Masters
”'Staggering'
Loan interest rates have seen a 'staggering jump' over the past 24 months, according to Moneyfacts.co.uk. The average interest rate charged on unsecured personal loans has increased by up to 44% in two years, Moneyfacts said. According to the price comparison site, the average APR on a £5,000 has jumped from 8.6% in May 2007 to 12.4% today. A person borrowing £5,000 ...




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