08/05/2008
Bank of England keep interest rates at 5%
The Bank of England's Monetary Policy Committee (MPC) has held UK interest rates at 5%. The move was widely expected, although many analysts now predict that rates will be cut to 4.75% in June.
30/04/2008
Housing market weakness stretches into April
- House prices fell for the sixth consecutive month in April
- The price of a typical house is now 1% lower than this time last year
- The Bank of England’s Special Liquidity Scheme should help to improve wholesale markets
- More than 5 million borrowers have directly benefited from Bank of England rate cuts
Headlines |
April 2008 |
March 2008 |
Monthly index * Q1 '93 = 100 |
355.5 |
359.4 |
Monthly change* |
-1.1% |
-0.7% |
Annual change |
-1.0% |
1.1% |
Average price |
£178,555 |
£179,110 |
* seasonally adjusted
Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said:
“April was another difficult month for the housing market. Falling levels of market activity meant that prices fell by 1.1% during the month and ended up 1% lower than this time last year. April’s fall in prices continues the trend of the last six months and reflects the weakening sentiment in the market brought about by poor affordability and tighter financial market conditions. This is the first year-on-year fall in prices since March 1996 and brings the price of a typical house to £178,555, £1,759 lower than at this time last year.
28/04/2008
More personal loan pain for borrowers
Michelle Slade, analyst at Moneyfacts.co.uk, comments
“It’s not only mortgage rates that continue to increase, so too have the rates and monthly repayments on personal loans.
“In the last two weeks alone we have seen Barclaycard (+0.50%), Lombard Direct (+1.0%), The AA (+0.10%), NatWest (+2.50%) and Tesco Personal Finance (+0.6%) all push selected rates upwards. On top of this Barclaycard has pulled the one time best buy product offered through its Masterloan brand.
23/04/2008
Moneyfacts mortgage facts
Denise Harvey, mortgage analyst at Moneyfacts.co.uk, comments
“Two weeks on from the base rate cut 38 lenders (38%) have announced that they will cut their SVR. The majority of lenders have passed on the full 0.25% cut however five have cut their SVRs by less than 0.25%, including Northern Rock which has only passed on a 0.10% cut, see Table 1.
21/04/2008
Are instant access accounts always what they seem?
The most popular account amongst savers are instant access and no notice. The majority of savers like the comfort of knowing that if they require immediate access to their money, they can get it. But with some accounts this comes at a price.
Michelle Slade, analyst at Moneyfacts.co.uk, comments:
16/04/2008
OFT credit card default charges – two years on
In April 2006 the Office of Fair Trading (OFT) declared that default charges on credit cards were too high and suggested capping these at £12. In the months that followed lenders cut these charges to £12 but in an attempt to recoup lost revenue, they hiked rates and charges elsewhere. Two years on, how much have the rates and charges on credit cards increased?
10/04/2008
Bank of England lowers interest rates to 5%
The Bank of England has cut interest rates to 5% from 5.25% to, it is the bank's third cut in interest rates since early December.
28/03/2008
No bounce in house prices this Easter
- House price growth slows to lowest level in twelve years
- Clear change in consumers’ housing market sentiment
- Outlook more downbeat, but within forecast range
- MPC expected to bring rate cut forward to April
Headlines |
March 2008 |
February 2008 |
Monthly index * Q1 '93 = 100 |
360.5 |
362.6 |
Monthly change* |
-0.6% |
-0.5% |
Annual change |
1.1% |
2.7% |
Average price |
£179,110 |
£179,358 |
* seasonally adjusted
Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said:
27/03/2008
Credit’s not so easy anymore
Not only have personal loan rates increased by an average of 1.7%* over the past year, lenders have also made some significant changes to the way that they offer these products. Samantha Owens, Head of Personal Finance at Moneyfacts.co.uk investigates:
26/03/2008
Credit crunch hits smaller mortgage lenders
Over the last few weeks we have seen more changes in the mortgage market time than ever before. Denise Harvey, mortgage analyst from moneyfacts.co.uk, looks at what has been going on.
“It seems that there is no stopping it. Over the last two weeks, lenders have been even more ruthless in withdrawing products from the market and/or tightening their criteria. Over the last month alone we have seen the number of mortgage products available across residential and buy-to-let plunge from 7726 to 5700, a staggering drop of 2026 products.
Read more19/03/2008
Biggest isn’t always best in the mortgage market
The fallout from the credit crunch and predicted falling house prices have forced lenders to consider their positions in the market and reassess their attitude to risk based lending. Denise Harvey, mortgage analyst from moneyfacts.co.uk looks at the position of the UK’s largest lenders in today’s market.
19/03/2008
Loyalty can pay if the account is right!
Michelle Slade, analyst at Moneyfacts.co.uk, comments:
“The savings market at the moment is a hotly contested arena. The credit crunch has seen institutions upping their game and launching products offering fantastic rates. The result being that some institutions now have in excess of 20 plus products to choose from.
12/03/2008
The decline of sub prime mortgage lending – where will it end?
It seems that the effects from the credit crunch on the sub prime mortgage market are far from over. Julia Harris, mortgage analyst from moneyfacts.co.uk looks at recent changes to the ever-depleting market.
“Over the last week we have seen a host of sub prime lenders including Amber Homeloans, Scarborough Specialist Mortgages and SALT cease new lending of sub prime mortgages. In addition Northern Rock has announced that it will no longer be offering sub prime mortgages funded by Southern Pacific Mortgage Limited.
Read more10/03/2008
Base rate lottery
In the space of just over a year we have seen three base rate increases followed by two base rate cuts. With everyone’s attention focused on mortgage and savings rates, some institutions have used the changes in base rate to increase their margins on current accounts.
Samantha Owens, head of personal finance at Moneyfacts.co.uk, comments:
“It appears that some lenders have used the base rate movements as an opportunity to reduce credit interest rates and/or increase overdraft rates.
10/03/2008
Moneyfacts calls on the Government and the mortgage industry to help homebuyers
On the eve of the launch of the first ever Moneyfacts mortgage report “Tougher times in the UK residential mortgage market”, Andrew Hagger of Moneyfacts.co.uk comments on the following topics:
05/03/2008
Plastic is fantastic for charitable giving – but only if you repay in full each month!
As we head towards spring, we see the return of many high profile charity events including Sport Relief and Race for Life. But giving to charity doesn’t have to be limited to sponsorship on an event once a year.
Michelle Slade, analyst at Moneyfacts.co.uk, comments:
05/03/2008
What a difference a year makes to mortgages
This time last year Northern Rock was just another bank and the words ‘credit crunch’ had no significance. One year on and the mortgage world is a completely different place. Julia Harris, mortgage analyst at Moneyfacts.co.uk, comments:
29/02/2008
House price inflation falls to 2.7% in February
- House prices fell by 0.5% in February, the fourth consecutive monthly decline
- The annual rate of house price inflation fell from 4.2% to 2.7%
- UK recession “a remote risk for the UK economy”
Headlines |
February 2008 |
January 2008 |
Monthly index * Q1 '93 = 100 |
363.3 |
365.0 |
Monthly change* |
-0.5% |
-0.3% |
Annual change |
2.7% |
4.2% |
Average price |
£179,358 |
£180,473 |
* seasonally adjusted
Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said:
“The price of a typical house fell by 0.5% during February, bringing the annual rate of house price growth down to 2.7%. This is the fourth consecutive monthly fall in house prices and brings the annual rate of house price inflation to its lowest since November 2005. The trend in prices is clearly weakening, but the size of the drop in the annual rate between January and February perhaps overstates the rate of cooling as it partly reflects the particularly strong increase in prices in February last year. The 3-month on 3-month rate of price growth rate fell to -1% in February, down from -0.4% the previous month. The average price of a typical property now stands at £179,358, an increase of £4,653, or £12.75 per day, over the last 12 months.
Read more27/02/2008
ISA war gathers pace
Rachel Thrussell, Head of Savings at Moneyfacts.co.uk comments:
“The rush for a slice of the tax-free market is really heating up now, with 42% of mini cash ISA products being amended since the beginning of February and 80% since the beginning of January.
“As previously predicted, the last few weeks have seen the banks and building societies upping their game as the new tax year approaches. Last year’s best buys were dominated by rates up to a maximum of 6.05%. However, in what has become a far more competitive environment this year, all the best buy rates are paying 6.10% and above.
27/02/2008
First time landlords also feeling the pinch
Results from the Council of Mortgage Lenders this week have shown an increase in the number of loans taken by buy-to-let landlords in 2007. With first time buyers finding it increasingly difficult to get onto the property ladder, it might be expected that private landlords are having it easy. Alan Harper, Senior Analyst at Moneyfacts.co.uk looks at the availability of buy-to let mortgages:
“Moneyfacts.co.uk research shows that landlords have not escaped the fallout from the credit crunch. As in the residential market maximum loan to value limits have fallen during the second half of 2007.
26/02/2008
Do you know the value of the contents in your home?
Michelle Slade, analyst at Moneyfacts.co.uk comments:
Whilst many people shop around for cheaper car insurance when it comes up for renewal, they tend to be more apathetic when it comes to insuring their most valuable asset, their home. Failure to check out the market for a better deal just ends up boosting the coffers of the insurance company. However, more importantly, if your contents are under-insured, you could find yourself severely out of pocket should you need to make a claim.
25/02/2008
Are packaged current accounts worth the money?
“The majority of the banks offer packaged current accounts, but are these accounts really worth the monthly fee and do any of these accounts offer a better deal than the standard current accounts?
Michelle Slade, analyst at Moneyfacts.co.uk comments:
“With us all currently waiting on the outcome of the OFT’s test case in the High Court with banks over charges and with speculation rife that free banking may be a thing of the past if the OFT wins, packaged current accounts may become increasingly popular.
22/02/2008
Going, going, gone – 125% LTV mortgages are no more
“At the end of last week there were six providers offering 125% mortgages; now there are none. Birmingham Midshires Solutions has become the last lender to pull out of this area of the market.
Denise Harvey, Mortgage Analyst at Moneyfacts.co.uk, comments:
“It seems no one is prepared to stand out from the crowd in the current environment and accept the additional risk a 125% mortgage poses.
21/02/2008
Base rate – two weeks on
Michelle Slade, analyst at Moneyfacts.co.uk comments on the changes in the mortgage and savings market since the 0.25% base rate cut on 7 February
20/02/2008
It’s not just 125% mortgages that are disappearing
By the close of play yesterday four of the six lenders that were offering 125% loan to value mortgages had announced that they were to withdraw these higher risk home loans. Alliance and Leicester, Coventry BS, Godiva Mortgages and Abbey are all set to pull these deals this week. Julia Harris analyst at moneyfacts.co.uk investigates:
19/02/2008
New car finance and Insurance – why getting it wrong could cost you thousands more
Michelle Slade, analyst at Monyfacts.co.uk comments:
“Motorists everywhere are now searching garages all across the country to find the best deal for the new 08 plate cars. Unfortunately the same effort is rarely put into sorting out the best finance for the car and getting this wrong can be an extremely costly mistake.
14/02/2008
Balance Transfers – not what they used to be
Samantha Owens, Head of Personal Finance at Moneyfacts.co.uk, comments on the 0% balance transfer deals and how this market has changed:
“It was way back in 2004 when balance transfer fees first started to raise their ugly heads on 0% credit card deals. However with increasing levels of personal debt, the market for transferring balances has become more competitive, but for the consumer it has become harder to get these deals.
14/02/2008
2007 – a bumper year for annuities
The latest annuity market review by Investment Life and Pensions Moneyfacts shows that 2007 offered a welcome upturn in a sector that has suffered prolonged erosion in the level of annuity rates available to pensioners.
13/02/2008
The fixed rate remortgage conundrum
As the year goes on, an increasing number of borrowers will be facing the dilemma of what to do once they come to the end of their fixed rate mortgage deals. Julia Harris, mortgage analyst at moneyfacts.co.uk, looks at the options available.
12/02/2008
Savings – What a difference a year makes!
This time last year the base rate was at the same level as it is today (5.25%). Savings rates on the other hand, are far higher than 12 months ago. Rachel Thrussell, Head of Savings at moneyfacts.co.uk, comments:
“Despite the latest cut in base rate, the second in the last three months, fierce competition within the savings market and particularly the battle for best buy recognition means that savers have the opportunity to grab some great deals at the moment.
08/02/2008
Use yesterday's rate cut to help you to reduce your mortgage term
Julia Harris, analyst at Moneyfacts.co.uk, shows you how re-investing the saving could help to reduce the amount and term left on your mortgage.
Don’t reduce your standing order – reduce your mortgage term and interest bill
“Moneyfacts’ analysis (based on a £100K mortgage over 25 years) shows that by simply re-investing the money you have saved through a 0.25% interest rate cut, back into your mortgage, you can save 15 months off the length of the term, and a total saving of £4454.81. If the rate gets cut by more, or cut again later in the year, the savings could be even greater.
07/02/2008
Bank of England reduces interest rates to 5.25%
Bank of England policymakers have decided to reduce UK interest rates to 5.25%. Analysts had widely predicted the move, which followed recent cuts in the US, where the Federal Reserve.
05/02/2008
Switching your current account – The Moneyfacts.co.uk view
Whether you are someone who runs your current account in credit or makes regular use of an overdraft limit, Samantha Owens, Head of Personal Finance at moneyfacts.co.uk, looks at the financial benefits of switching your current account.
“Whilst switching a mortgage, credit card or savings account has become almost the norm as consumers have started to become more savvy about making the most of their money, there is a combination of reluctance and apathy when it comes to moving your current account.
05/02/2008
ISA war kicks off early
Michelle Slade analyst at Moneyfacts.co.uk comments:
”As the end of another tax year fast approaches, savers should be looking to make the most of their tax free allowance. Any allowance not used by the 5 April deadline will be lost forever.
“This year the battle for a slice of the tax-free savings market has kicked off earlier than usual, with two of the current top three best buys (Scarborough BS and Icesave) having been launched in the last month.
04/02/2008
Gas and electricity – price is only part of the issue
Michelle Slade analyst at Moneyfacts.co.uk comments:
“Once again we are in the situation where double digit price rises are the norm and everyone is wondering where to go for the best deal. Whilst it is a good time to be shopping around, Moneyfacts is calling on the power suppliers to do more to help customers.
31/01/2008
Little movement in house prices during January
- House prices fell by a modest 0.1% in January, the third consecutive monthly decline
- The annual rate of house price inflation edged down from 4.8% to 4.2%
- Housing market conditions have loosened further, but there are tentative signs that demand may have bottomed out
Headlines |
January 2008 |
December 2007 |
Monthly index * Q1 '93 = 100 |
365.9 |
366.4 |
Monthly change* |
-0.1% |
-0.4% |
Annual change |
4.2% |
4.8% |
Average price |
£180,473 |
£182,080 |
* seasonally adjusted
29/01/2008
Lenders squeeze extra profit before base rate falls
With speculation rife that the Monetary Policy Committee will cut base rate again next week, mortgage lenders have been preparing for the potential increased demand by increasing margins offered on tracker rate mortgages. Denise Harvey, mortgage analyst at Moneyfacts.co.uk investigates.
“In the last two weeks alone, analysis from Moneyfacts.co.uk has revealed that 10 lenders have increased the margins on tracker mortgages by as much as 0.45%.
28/01/2008
Got the post Christmas credit card blues - why not invest a little time to knock ALL your finances into shape?
Andrew Hagger, head of news and press at Moneyfacts.co.uk shows just how much consumers can save, not only on their credit card, but also on their energy and insurance bills whilst they’re at it.
“In the last couple of weeks thousands of people will have taken a sharp intake of breath when they realised the extent of their Christmas overspending as their latest credit card bills hit the doormat.
25/01/2008
Yet more bad news for savers
Today sees news that selected Barclay’s savings rates will be hit for the third time in as many months.
Savings Builder and Day to Day Savings face a 0.24% reduction on 1 February. Day to Day savings will pay 3.69%; Savings Builder will pay 4.17% at £10K, 4.31% at £25K, 4.41% at £50K, 4.55% at £100K and 4.65% at £250K.
Rachel Thrussell, Head of Savings at Moneyfacts.co.uk comments:
“This is disappointing news, particularly so soon after the previous cuts. A total cut of 0.74% will make a significant dent to your interest return, especially when the rates are far from market leading.
21/01/2008
Moneyfacts.co.uk calls on Ofgem to help pensioners with increased energy costs.
Many people in the UK are faced with having to stretch their finances to the limit with the news that NPower, EDF energy and British Gas are hiking fuel prices by around 15 per cent, but for many elderly members of our society, this could prove a hike too far.
Andrew Hagger of Moneyfacts.co.uk comments:
16/01/2008
Pension fund returns lowest for five years
“After enjoying four successive years of strong investment returns, most pension holders will have seen only modest gains to their policies during 2007. Only those pension savers who hold more aggressive funds investing in the Far East and Global emerging markets will look back at the last twelve months with any real sense of achievement.”
15/01/2008
Fixed rate savings take a tumble
Rachel Thrussell, Head of Savings at Moneyfacts.co.uk, comments:
“High savings rates have been a by-product of the credit crunch, as providers source deposits as an alternative option to raising funds on the money markets. Competition is still alive, with rates paying almost 1% more than Bank of England base rate in the variable market, and as much as 1.35% within the fixed market.
15/01/2008
Good news for borrowers as personal loan rates fall
Esther James, personal finance analyst at Moneyfacts.co.uk, comments:
“For most of 2007 we reported rising loan rates, with the demise of sub six percent personal loans and the market finally settling at the end of the year with the best deals around 6.5% to 7%. But as 2008 starts, there is good news for borrowers as rates begin to fall.
14/01/2008
Mortgage lenders tighten their belts
With expectations of a housing market slowdown this year, it seems that mortgage lenders have started to take a more cautious approach to ensure their fingers don’t get burnt. The latest market analysis from Moneyfacts.co.uk highlights the current trend for lenders to be reducing their maximum loan to values.
10/01/2008
Moneyfacts.co.uk consistent savings accounts Jan 2008
For savers who are fed up with excessive rate cuts or too busy constantly to switch between short term deals.
Andrew Hagger of Moneyfacts.co.uk comments:
“Recent events in the personal savings market underline the importance of providing consumers with details of the most consistent savings accounts available.
Read more10/01/2008
Bank keeps interest rates on hold
Bank of England policymakers have decided to keep UK interest rates unchanged at 5.5%. The Bank faced a tough decision, having to balance signs of a slowdown in consumer spending against indications of growing inflationary pressures.
09/01/2008
Savers - fed up with big rate cuts and short term bonuses?– Moneyfacts.co.uk has the answer
Lisa Taylor, at Moneyfacts.co.uk comments:
“UK savers are faced with a huge array of savings accounts to choose from, but how can they pick an account that hasn’t had its rate slashed to a derisory level or find an account that doesn’t include a short term bonus? Moneyfacts tables highlighting the most consistent best buy savings products over the last 18 months and 36 months could well be the answer to help consumers steer clear of such interest rate uncertainty – full details of the latest best buy accounts will be published tomorrow 10.1.2008.
09/01/2008
Savers and borrowers still waiting to see if their rates will be cut
Julia Harris, analyst at Moneyfacts.co.uk investigates:
“Five weeks on from Decembers shock reduction in base rate, many experts are predicting yet another cut tomorrow. Despite the festive period we would have expected the dust to have settled by now, with most lenders and savings providers having made a decision. But some lenders and savings providers are still undecided, with mortgage borrowers continuing to be charged at a potentially higher rate, while some savers may be happily sitting on higher than expected return.
07/01/2008
Still 24 days to pay day – can your overdraft take the strain?
Pay day may seem like an eternity away, with your bank account put under extra pressure trying to cope with your post Christmas spend and regular household bills. But it is vital that you keep on top of your finances. Going into unauthorised overdraft, buying items without the funds to cover them or having items returned by your bank can be a costly mistake.
Lisa Taylor, analyst at Moneyfacts.co.uk investigates:
Moneyfacts.co.uk research reveals:
- The average cost of unauthorised debit interest is almost double the cost of an authorised overdraft
- Average authorised rate is 12.08%, compared with 23.27% for unauthorised borrowing
- If your banks pays an item for £100 taking you into unauthorised overdraft, bank fees and interest could cost you over £160 if you don’t clear this debt for two weeks.
- Depending on your current account provider, this charge could vary by over 600%
07/01/2008
Choosing the wrong loan could cost you dear
If your new year’s resolution is the tackle your debt by consolidation, tread carefully as you could be caught out by high interest rates and over priced insurance. Lisa Taylor, analyst at Moneyfacts.co.uk investigates:
“Consolidating your debts onto one loan can prove an ideal solution. It could cut your monthly payments and see your interest bill lower. Also for those less disciplined, the fixed monthly repayment might offer the structure you need to commit to repay the debt within a given time.
04/01/2008
Rate of annual house price growth slows in all UK regions
- Annual house price growth slows across the whole of the UK in final quarter of 2007
- The ripple effect is still evident as the North-South gap widens by £15,000 in 2007
- Northern Ireland saw the biggest slowdown in annual house price growth while the West Midlands was the most stable region
- London saw fastest rate of annual house price growth in England for the seventh consecutive quarter
- Northern Ireland and Yorkshire & Humberside saw price falls during the final quarter
03/01/2008
Get a grip of your finances in 2008
Julia Harris of Moneyfacts.co.uk looks at sorting out your finances if you’ve lumbered yourself with more debt than you’re comfortable with in 2007 and want to put that New Year’s resolution into action to regain control in 2008
2007 News Achieve
To view the news auriculars from Go Direct in 2007 please click on the link below.
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