A hung parliament would not necessarily be bad news for the UK economy, a number of financial experts have claimed. Melanie Baker, economist at Morgan Stanley, said because all the parties have a similar approach to the economy, a coalition government is likely to quickly agree on reducing the deficit. “The ultimate policy outcomes may [...]
The financial crisis has made people aware of the need for businesses to take a stand on social issues and help combat inequality, an investment expert has claimed. Sir Ronald Cohen, founder of private equity firm Apex Partners, believes the credit crunch will help shine the spotlight on social investments, which use financial tools to [...]
Consumers are using their spare cash to pay off debts rather than stashing it away in a savings account, Moneyfacts has observed. Michelle Slade, spokesperson for the consumer advice site, said many people are using money they’re saving due to low interest rates on mortgages to pay off personal loans and credit cards. Slade believes [...]
Lenders continue to offer mortgages at an “obscene” rate of interest despite the cost of interbank borrowing falling to a record low. Paul Holmes, chief executive of first-time buyer advice site Firstrung, said lenders have “no excuse” for the rates they are charging. Banks and building societies are simply using record low interest rates to [...]
Ethical investments aren’t always rubbish, investment advice site The Motley Fool claimed this week. Fool.co.uk journalist Harvey Jones made the claim following reports that ethical funds dropped by an average of 16.7% in the past year compared to an average 12.4% fall on non-ethical funds. However, looking back to figures from 2007, Jones noticed that [...]
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 [...]
Britain’s recession may already have ended, according to a new report. Economic output in the UK re-entered growth during April and May, a government funded thinktank has revealed. Gross Domestic Product (GDP) grew 0.2% in April and 0.1% in May, the National Institute for Economic and Social Research (NIESR) claimed. If this growth continues through [...]
Government plans to help elderly savers by increasing the limit on tax-free savings will have little effect, a financial expert has warned. Kevin Mountford, savings expert at Moneysupermarket.com, said the increased limit on cash ISAs – from £3,600 to £5,100 – is worth a paltry £1.89 in tax savings on interest payments. The £1,500 increase [...]
Sterling started its fight back against the euro and the dollar in recent weeks, and analysts at CaxtonFX expect this trend to continue. Currency exchange provider CaxtonFX pointed out that last week’s stock market rallies and a 5% rise in the FTSE 100 banking index caused sterling to rise to €1.13 and above $1.50. By [...]
First time buyers are paying record deposits as lenders make it even more difficult to take out a mortgage. Figures from the Council of Mortgage Lenders (CML) show that a typical first time buyer now has to put down a deposit of 24% – the highest percentage since records began in 1974. With the average [...]
Billionaire investor Warren Buffett this week said the US economy had ‘fallen off a cliff’ and warned that a rebound could trigger inflation more drastic than that experienced in the late 1970s. The 78-year old owner of insurance and investment firm Berkshire Hathaway spoke live on US cable network CNBC. “Not only has the economy [...]
ISAs are best for savings despite falling interest rates Savers should make the most of their money by saving in a tax free ISA, moenysupermarket.com said on Wednesday. Calculations by the price comparison site found that savers who have used their full ISA allowance for the past 10 years will be £2,700 better off than [...]
Base rate cuts alone may not be enough to revive the UK economy, Lloyds TSB has warned. Trevor Williams, an analyst at Lloyds TSB, said the Bank of England must start thinking about alternative stimuli. The ‘economic woes’ that led to last week’s base rate cut ‘will not disappear overnight’, said Williams. With the base [...]
The worst housing market crash since records began has left an estimated 1.2 million households in negative equity, according to Nationwide Building Society. The average house price has dropped from £186,050 at peak in October 2007 to £150,500 today, a fall of over £35,000. This month alone, prices fell 1.3%, or £2,500. At current house [...]
The UK is heading into the worst recession since 1947 according to analysts at the Bank of America and Capital Economics. Economists at the two institutions estimate that the UK’s economic output could shrink by as much as 2.5% in 2009, putting Britain into the most severe economic decline for over 60 years. The prediction [...]
M&S Money launches 3% cash ISA
M&S Money has launched an Advantage Cash ISA paying 3 per cent, and which allows transfers in from other ISAs. It can be opened with a minimum deposit of £100 lump sum followed by minimum monthly deposits of £25. The 3% rate is variable, but there is no short-term bonus so the return won’t plummet [...]
Google suspends UK Compare Mortgages site
Google has closed its UK mortgage comparison site which it launched in July last year, after it proved to be less popular than expected. Mortgage comparison sites are designed to allow visitors to compare mortgages quickly and easily without having to visit each lender’s individual site. Google was competing with several well-established comparison sites, including [...]
AA launches ‘black-box’ policy for young drivers
The AA is launching an innovative car insurance policy called Drivesafe which could help younger drivers save up to £850 a year. Younger drivers already pay substantially higher premiums than other motorists and these costs are increasing. A new study by Confused.com suggests insurance costs for younger driver have gone up by 5.7 per cent [...]
ATOL scheme updated to protect online bookers
ATOL, a financial protection scheme managed by the Civil Aviation Authority, is being extended to protect up to six million more holidays a year. The scheme ensures that holiday makers do not lose out financially if a travel company collapses, and that they are not stranded abroad. An increase in the number of holidays booked [...]
Home repossessions lowest for four years
The number of UK homes repossessed fell to 36,200 in 2011, significantly below the Council of Mortgage Lenders’ forecast of 40,000, and lower than 2010 when 37,100 homes were repossessed. With interest rates remaining low and lenders adopting a sympathetic attitude to customers in financial difficulty, repossessions fell to their lowest level since 2007. However, [...]
Monthly pay lasting just 17 days
Workers are running out of money just 17 days after receiving their monthly pay, according to new research by the Halifax bank. This means that the average UK worker spends half the month worrying about money. The study, based on the responses of more than 2,000 adults, found that 10 per cent of workers start [...]
Women disadvantaged by auto-enrolment changes
Government proposals to increase the auto-enrolment threshold to £10,000 could put 1.8 million women at risk of missing out on a pension, the TUC has warned. Under the auto-enrolment scheme, which will be phased in from October, private sector employers will automatically enrol workers between the age of 22 years and the state pension age, [...]
Emergency household repairs company Homeserve is taking longer than expected to get back on track after its operations were suspended last October. The company expected customer numbers to fall by 5% this year but it has increased this estimate to 8% and announced the loss of 200 jobs. It estimates that renewal revenue in 2013 [...]
Sale rumoured for Yorkshire and Clydesdale banks
There is growing speculation that National Australia Bank (NAB) may sell Yorkshire Bank and Clydesdale Bank after the Australian parent company announced a strategic review of the two banks’ operations. The Australian economy is performing well and NAB reported strong profits for the final quarter of 2011 but with the UK economy at a virtual [...]
More women experiencing debt difficulties
Women in Debt, which offers female-focused debt advice, has warned that the number of UK women facing serious debt has grown significantly over recent years. The organisation believes that more women will need advice on solving debt problems in the future because they are building up an unsustainable level of indebtedness. Women in Debt’s director, [...]
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