Car Insurers Debate Over Future Profits

UK car insurers have been running an unprofitable business for 14 years. Independent market analysts, Datamonitor, say 2009 looks to be a profitable year despite the doubts

March 13, 2008

Budget Report Expectations

Chancellor Darling's Budget Report is expected to raise taxes on alcohol, fuel emissions, flights and many other issues concerning the economy. Tax burdens expected to increase on poorer families

March 12, 2008

Card Fraud Rises Again

Card fraud has increased over past year. Whilst chip and PIN technology has been successful in the UK, criminal activity overseas has increased 77 per cent

March 12, 2008

Tax Cuts Needed To Restore Confidence

Appeals for corporate tax cuts are submitted to the Treasury as it prepares its Budget report this Wednesday. Business and banking sectors are worried about the direction of the UK economy

March 10, 2008

First Time Buyers Take Hit From Stamp Duty

Stamp duty tax has not kept up with the rate of increase in house price inflation over the past decade. Yet another hurdle first-time buyers must leap over to get on the property ladder

March 10, 2008

Read all Finance News

Potential Homeowners Still Want Mortgages

Current numbers do not reflect a slowing in the housing market. In fact, according to recent statistics, potential homeowners are not disturbed by the rate hikes. Borrowers are taking out a £100,000 mortgage at 7.84 per cent with and repaying £761 a month, growing to £930 a month on a variable rate of 10.3 per cent within 2 years, according to Kensington Mortgages. Even with the increases in rates, Kensington Mortgages is set to reduce the amount it will lend to 75 per cent of a property’s value.

Ray Boulger, of John Charcol, the broker, said: “Some won’t be able to get a mortgage, others won’t be able to afford their existing one. For some, the situation will be a bit like the US crisis, although that was clearly much worse.” As with Northern Rock, reliance among sub-prime lenders on the wholesale markets for mortgage funding has left many exposed to the fallout from the US crisis, forcing them to cut exposure to the riskier end of their customer base to survive.

Alan Cleary, managing director of Edeus, the specialist sub-prime mortgage lender, said: “The £10 billion on offer is quite clearly not enough to make a difference to borrowers who face the prospect of not being able to get loans. We are choosing to do a lot less volume next year because we are assuming the sub-prime market will not get better. This is all about surviving.”

New borrowing rules are designed to prevent homeowners with poor credit histories from remortgaging. This will result in many homeowners who applied for 100% mortgages to lose their homes. Those who do not lose their homes can expect to see variable rates that add hundreds of pounds to their mortgage bills, monthly.

Industry commentators said yesterday that this will force many to sell or face repossession.

Published on September 25, 2007

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Lending Falls Again Says CML

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Interest Rates Kept At 5.25%

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March 7, 2008

20 Per Cent Of Homeowners Fear Repayments

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March 6, 2008