Tag: borrowers

Report reveals lenders not passing on base rate cuts

Report reveals lenders not passing on base rate cuts

The Bank of England’s Quarterly Bulletin has revealed that High Street banks have not been passing on base rate cuts in full. Interest rates have been held at the record low of 0.5% since March 2009 (when the country was in the midst of its worst recession in decades), but despite this, banks are not […]

September 20, 2010 More
Credit card interest rates soar to 12-year high

Credit card interest rates soar to 12-year high

New research has revealed that millions of credit card holders could face severe debts after card providers have put interest rates up to a 12-year high. The Bank of England’s base rate has been at the historically low rate of 0.5% for almost a year but despite this, average credit card interest rates have risen […]

February 16, 2010 More
Some borrowers may never pay back debt

Some borrowers may never pay back debt

Three in ten people who seek debt advice are so far in the red that they will never find a way out of debt unless they earn more money, the Consumer Credit Counselling Service (CCCS) said this week. Frances Walker, CCCS spokesperson, said that although it’s “good news” many people are starting to pay off […]

September 9, 2009 More
Personal debt falls for first time since records began

Personal debt falls for first time since records began

The Bank of England has today reported that the total amount of personal debt in the UK has declined for the first time since records began – more than 16 years ago. The economic downturn and fears over rising unemployment has meant consumers are reducing their debt with personal borrowing falling by £600 million in […]

Homeowners reluctant to seek help over mortgages

Homeowners reluctant to seek help over mortgages

Homeowners struggling with mortgage repayments can be shy in talking about their difficulties, despite pleas from lenders and debt charities to seek help and advice early. According to research from the Financial Services Consumer Panel (FSCP), 41% of those having difficulty paying their home loans struggle on unaided, even though seven out of eight borrowers […]

Negative equity afflicts “prime” homeowners

Negative equity afflicts “prime” homeowners

Northern Rock is leading the field in “prime” mortgages that have fallen into negative equity. A new report from ratings agency, Fitch, reveals that almost one in six households at the upper end of the UK property market have home loans that exceed the value of their properties. In the case of the state-owned Northern […]

Halifax entices borrowers with Council Tax offer

Halifax entices borrowers with Council Tax offer

As of this week, Halifax is plying homemovers and first-time buyers with a new offer that provides help towards the cost of running a home. Borrowers can have 50% of their council tax bill paid by the lender during the first year in their new residence, with all payments being made direct to local councils. […]

Further blow to savers as UK interest rates cut to 0.5%

Further blow to savers as UK interest rates cut to 0.5%

As widely expected, the Bank of England has lowered interest rates to a new historic low of 0.5% as it continues its attempts at stimulating the economy. Since October, interest rates have been cut six times in a bid to fight off the recession but the latest cut has been widely criticised since they have […]

BSA: Rate cuts an ‘assault’ on savers

BSA: Rate cuts an ‘assault’ on savers

Further cuts to the Bank of England’s base rate (BBR) would be an ‘assault’ on both savers and borrowers, the Building Societies Association (BSA) said this week. The BBR is already at an all time low of 1%, and analysts widely expect the central bank to announce additional cuts later this week. However, the BSA […]

Think tank believes rate cut this week is ‘pointless’

Think tank believes rate cut this week is ‘pointless’

An influential think tank believes that a cut in interest rates this week would not benefit the economy but said other moves such as the Bank of England purchasing corporate bonds would be better. The Bank of England’s Monetary Policy Committee begins its two-day rate setting meeting today and has aggressively cut rates since October […]

Northern Rock reinstated as a lender

Northern Rock reinstated as a lender

The bank bail-out package announced today by the Government could contain good news for Northern Rock borrowers and the UK mortgage market generally because the bank is being reinstated as a lender. Since its nationalisation in February 2008, Northern Rock has focused on paying back its debt to the Government. During last year, it was […]

Base rate cut a double-edged sword for mortgage lenders

Base rate cut a double-edged sword for mortgage lenders

The director general of the Council of Mortgage Lenders has described today’s cut in the Bank of England’s base rate to 1.5% as a double-edged sword for lenders who rely on savings deposits to fund their mortgage businesses. Michael Coogan comments that while lower mortgage rates can provide borrowers with the opportunity to repay their […]

Unfair lenders face FSA wrath

Unfair lenders face FSA wrath

The Financial Services Authority (FSA) is threatening to fine banks and building societies that are heavy handed with homeowners who fall into arrears with mortgage repayments. The regulator has written to the chief executives of mortgage lenders, giving them until 31st January to review their policies. The FSA’s managing director of retail, Jon Pain, explains […]

MPs urges banks to pass on interest rate cuts

MPs urges banks to pass on interest rate cuts

Last month, in a co-ordinated move with other banks, the Bank of England’s Monetary Policy Committee (MPC) slashed UK interest rates from 5% to 4.5%. Central banks in the US, Japan and China have all cut interest rates in the last week in a bid to fight off a recession. Many analysts believe that the […]

Negative equity haunts one in five Northern Rock borrowers

Negative equity haunts one in five Northern Rock borrowers

As the housing market downturn continues, Northern Rock customers are more likely to be facing negative equity than borrowers with other UK lenders. While the number of people in arrears with their mortgage repayments is rising across the banking sector, Northern Rock is more exposed than most of its competitors because prior to the credit […]

Northern Rock borrowers trapped on expensive rates

Northern Rock borrowers trapped on expensive rates

Mortgage customers of Northern Rock who are seeing their fixed-rate mortgages run out are facing huge increases because they are trapped on expensive rates with the crisis-torn lender. The business plan for the nationalised bank saw attractive rates scrapped in an attempt to put-off new customers and encourage existing ones to re-mortgage with another lender. […]

Chancellor challenges mortgage lenders

Chancellor challenges mortgage lenders

Chancellor of the Exchequer, Alistair Darling, is meeting with mortgage lenders later today in efforts to extract the maximum benefit for homeowners of the Bank of England’s bold move to ease credit conditions with a £50 billion injection of cash. Mr Darling’s agenda will include help for borrowers whose fixed-rate mortgages are coming to an […]