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

Good News for Mortgage Borrowers

Amid constant predictions of high interest rates and tightening mortgage lending criteria, the mortgage industry is offering a ray of hope to potential homeowners.

Borrowers who have savings and have a healthy credit rating can forget traditional mortgages and take advantage of offset deals and current account mortgages.

Lenders that offer this type of loan let borrowers use money in savings accounts against the outstanding mortgage balance. The borrower will pay interest on the difference between their savings account and mortgage, reducing their mortgage bills, and reducing the impact caused by increases in interest rates, according to a report from Intelligent Finance who claim that households with savings of 8 per cent, of their mortgage balance will benefit from the offset mortgage.

James Cotton, of London & Country Mortgages, says: "It could be time for borrowers to consider alternative deals. Those with significant savings can turn this to their advantage by offsetting."

This is only one of the options made available by 'non traditional' lenders. Britannia Building Society and Woolwich introduced highly competitive deals for two, five and ten-year fixed rate mortgage loans with Britannia is charging 5.39 percent on their five year fix. This type of borrowing can be a good deal, as long as the consumer watches for the big fees charged by some of the larger lenders.

James Cotton, of London & Country, the mortgage broker, says that homeowners who bury their heads in the sand and do nothing will be hit hardest. These borrowers will be forced to accept their lenders' expensive SVRs. He said: "Many people could suffer an increase of more than three percentage points when moving to the SVR."

Published on October 11, 2007

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