Tag: credit crunch

Personal debt soared prior to credit crunch

Personal debt soared prior to credit crunch

Household borrowing soared in the decade leading up to the start of the financial crisis in 2008 according to a report by the National Institute for Economic and Social Research (NIESR) and the Resolution Foundation. Household spending, GDP and property prices all increased steadily between 1997 and 2007 but the report suggests that this growth […]

May 15, 2012 More
More buy-to-let mortgages approved

More buy-to-let mortgages approved

The number of properties bought with buy-to-let mortgages increased by 84,000 in 2011 according to the Council of Mortgage Lenders’ latest figures. In the final quarter, 34,800 buy-to-let mortgages totalling £4 billion were approved, compared with 26,300 worth a total of £2.9 billion, in the 2010 final quarter. Demand for rented accommodation has increased significantly […]

February 16, 2012 More
Government sells Northern Rock to Virgin Money

Government sells Northern Rock to Virgin Money

The government has announced the sale of Northern Rock to Virgin Money for £747m, representing a loss of £650m on the £1.4bn of public money it injected into the Newcastle-based bank. The chancellor, George Osborne said that the deal was “an important first step in getting the taxpayer out of the business of owning banks”. […]

November 17, 2011 More
Report reveals rise in mortgage availability

Report reveals rise in mortgage availability

Figures from Moneyfacts have revealed in the number of mortgage products. The credit crunch resulted in a tightening of lending criteria and mortgages have been hard to secure without a substantial deposit. However, the number of different mortgage products has risen to its highest level since November 2008, according to Moneyfacts, due to increased competition. […]

July 5, 2011 More
UBS announces first quarter results

UBS announces first quarter results

Swiss banking giant UBS has today reported a net profit of SwFr1.8 billion (£1.2 billion) in the first quarter of the year. However, this represented an 18% fall on the same period a year ago but 7% higher than the final quarter of 2010. The bank, which is Switzerland’s largest, was among one of the […]

April 26, 2011 More
Survey reveals mortgage availability set to improve

Survey reveals mortgage availability set to improve

There is some good news for the housing market after a Bank of England survey revealed mortgage availability is set to improve in the coming months. The survey comes as mortgage lending continues to remain subdued as first-time buyers, in particular, struggle to obtain a mortgage unless they have a substantial deposit. Since the credit […]

April 2, 2011 More
Northern Rock reports £232m loss

Northern Rock reports £232m loss

Crisis-torn Northern Rock has today unveiled an underlying loss of £232.4 million for the 2010 year for its so-called “good“ bank. Despite the loss, the Newcastle-based bank will pay more than £13 million in bonuses to its 4,000-strong workforce. The bonus comes despite executive chairman Ron Sandler describing the losses as “disappointing”. He comments: “2010 […]

March 9, 2011 More
First-time buyers still require hefty deposit

First-time buyers still require hefty deposit

Research from the Halifax has revealed first-time buyers are still struggling to get onto the property ladder unless they have a hefty deposit. The mortgage lender said a first-time buyer has to find at least £29,000 in order to secure a mortgage, while those in London require almost double that (£50,000). Since the credit crunch […]

December 29, 2010 More
Swiss bank UBS unveils Q3 results

Swiss bank UBS unveils Q3 results

Swiss banking giant UBS has today reported a net profit of SwFr1.66 billion (£1.1 billion) for the July to September period – exceeding analysts’ expectations. The figures compare with a loss of SwFr564 million for the third quarter a year ago. For the first time since the financial crisis, the bank said it restored client […]

October 26, 2010 More
Northern Rock’s bad bank back in profit

Northern Rock’s bad bank back in profit

Northern Rock Asset Management (NRAM), the so-called bad bank, has today reported it has returned to profit. The crisis-torn bank, which was the first victim of the credit crunch, said pre-tax profit for the first six months to the end of June were £349.7 million, compared with a loss of £724.2 million a year earlier. […]

August 3, 2010 More
UBS Q2 profits exceed expectations

UBS Q2 profits exceed expectations

Swiss banking giant UBS has today reported a net profit of SwFr2.0 billion (£1.2 billion, $1.9 billion) for the April to June period – exceeding analysts’ expectations. The news will be welcomed by many investors after the bank was among one of the worst hit victims of the credit crunch due to its exposure to […]

July 27, 2010 More
‘Era of debt-fuelled consumerism over’

‘Era of debt-fuelled consumerism over’

The era of debt-fuelled consumer spending is over, a financial expert has claimed, pointing out Britain’s consumer debts of nearly £1.5 trillion. Tim Moss, head of loans at moneysupermarket.com, seemed to be talking himself out of a job by claiming consumers can no longer afford to fund purchases on borrowed money. Consumers must face up […]

July 14, 2010 More
Saving the “victim” of the credit crunch

Saving the “victim” of the credit crunch

Saving rather than borrowing has been the “major victim” of the credit crunch, according to new research published this week. The study by unbiased.co.uk found that savings levels dropped from £38.7 billion between April and June 2008 to £19.9 billion between July and September 2008 and haven’t recovered since. In the first three months of […]

June 9, 2010 More
Northern Rock savers lose 100% guarantee

Northern Rock savers lose 100% guarantee

Savers with Northern Rock have today lost the 100% guarantee on their cash. The move, which was announced back in February, means the crisis-torn bank is back in line with its rivals but savers will still benefit from the £50,000 guarantee to all savers under the Financial Services Compensation Scheme (FSCS). The 100% guarantee was […]

May 24, 2010 More
Consumers wary of borrowing

Consumers wary of borrowing

Consumers are being more careful about how much they borrow, a debt advice charity has claimed. The Money Advice Trust said many consumers are wary of credit because of the financial problems that can be caused by being in debt. “We think the general attitude to debt has changed,” said Joanna Elson, MAT chief executive. […]

May 12, 2010 More
UBS eyes recovery after huge losses

UBS eyes recovery after huge losses

Swiss banking giant UBS has today reported first-quarter net profit of SwFr2.2 billion boosted by a strong performance in its investment banking division. The earnings beat analysts forecasts of SwFr2.0 billion, according to a poll by economics newswire AWP. UBS is among one of the worst hit victims of the credit crunch due to its […]

May 4, 2010 More
Credit mediator to be appointed in Germany to prevent another credit crunch

Credit mediator to be appointed in Germany to prevent another credit crunch

The German Government has named Joachim Metternich as the country’s new credit mediator in a bid to boost business lending. Mr Metternich, who currently heads up the public investment bank for the western German state of Rhineland-Palatinate, will take up his role in March 2010. The appointment comes after Germany’s Economy Minister, Rainer Bruederle, and […]

December 2, 2009 More
Ethical investments return to pre-crunch levels

Ethical investments return to pre-crunch levels

Investment in ethical funds has recovered to pre-credit crunch levels, new research has discovered. During the third quarter, investments in ethical funds reached more than double the total of ethical investments in the same period last year. Net sales of ethical funds between July and September were £59 million, compared to £21 million in the […]

November 5, 2009 More
Investors keep their principles during recession

Investors keep their principles during recession

The financial crisis has not changed the attitude of investors towards green and ethical investments, new research has discovered. In a poll of financial advisers just 18% said the economic downturns has impacted on the attitude of clients towards green and ethical investment. This is compared to 85% of advisers who said the crisis has […]

October 30, 2009 More
Credit crunched Brits choose cosy nights in

Credit crunched Brits choose cosy nights in

One in three Brits are saving money by going out less often and socialising at home. In a poll by Friends Provident, 35% of respondents said they have been going out less frequently since the recession began. One in five (22%) have become ‘social-nesters’, bringing their nights out into their own living room. A third […]

October 27, 2009 More