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

Is There Change In The Near Future?

The question that all economists are asking is whether the UK economy is preparing for a change. The bank sector has released a dozen reports within the last two weeks offering analysis, and the media followed by making predictions.

The question, according to FXstreet: The Forex market, is whether the crisis in the UK bank sector will impact the economy as a whole. They believe the direct impact will be felt in the credit channel. They expect the crisis to accelerate rapidly resulting in the tightening of credit conditions. Their conclusion: It will be harder to get a loan.

The Financial Services Authority warned in June that lenders were too reckless when lending to borrowers with poor personal finances.

"We therefore believe that the crisis in the financial markets will put pressure on the housing market, which was already heading for leaner times. To begin with, the tightening will hit first-time buyers and people with low credit ratings. This 'feeder channel' into the housing market will therefore dry up to some extent in the coming quarters. In addition, it is important not to underestimate the psychological effect that the bank runs and the renewed focus on the housing market could have on the UK housing market."

These predictions are following forecasts that the Bank of England will lower the interest rate in the first quarter of 2008. However, no one is making any statements concerning the banking industry's generosity, and whether they will pass the benefits on to their customers.

"We now anticipate two 25bp cuts in Q1 and Q2 next year, taking the base rate back down to 5.25%. Lower rates will have a further negative effect on GBP," said Anne Lohmann Rasmussen of Danske Bank when interviewed by FXstreet.

Published on October 16, 2007

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Lending Falls Again Says CML

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March 12, 2008

10 Tips To Improve Your Credit

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March 7, 2008

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