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

Pensioner Remortgaging Warning

More pensioners are mortgaging their homes to fund retirement plans, prompting severe warnings that they are making a serious misjudgment. This scheme, also benignly labeled ‘releasing equity in the home’ will force many pensioners into bankruptcy. Many homeowners do not understand that home reversion schemes do not fall under the FSA regulation. Retirement Solutions, Dean Mirfin, believes that pensioners are heading toward a time bomb.

According to a report released in March 2007, one in four over-60s still have outstanding mortgage debts. Those who are over 70 with £37,000 each are most vulnerable.

The analysis, based on a 4,600 over-60s case study who released equity in their home in 2006, found that:

• The average mortgage debt in the 60-64 year group is £23,513
• Increasing to £29,000 between 65-69 years
• An increase of over 70s who owe £37,000 each

The report summarized that over 70s mortgage debt is 27.5 percent higher than in any other age group, a worrying statistic to many.

This is not a surprise to analysts in the industry. In 2003 the total stood at £93billion, and 12,000 plans were sold, up from 5,900 in 2002.

The Council of Mortgage Lenders (CML) predicted in 2003 that that the equity release market could reach £100billion. Today, 2007, it stands at £98 billion.

"Many pensioners are tempted by equity release as they are asset rich as a result of increasing house prices but cash poor due to low retirement income," a spokeswoman for Age Concern England told BBC News Online.

Published on October 13, 2007

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20 Per Cent Of Homeowners Fear Repayments

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