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

Warning For Low Rate Chasers

The financial world is reverberating with warnings for low rate chasers. The warning is repeated everywhere from independent web sites to the Times Online, beware of borrowing or renewing a mortgage at the lowest rates without first considering all factors in the contract.

Andy Hornby, the chief executive of HBOS, warned consumers that mortgages will become even more expensive. Mr Hornby said that the financial community is experiencing a 'sharp reduction in profitability' in their mortgage products. He stated that HBOS may stop offering deals to steal custom from rival lenders.

If the banks stop trying to attract borrowers, then the companies who are still fighting for a larger share of the market will be able to charge higher rates to reflect the difference between supply and demand.

Borrowers seem determined to ignore the warning, believing their best bet is to limit the damage done by higher interest rates by grabbing deals that offer rock-bottom rates without taking into consideration the fees, costs, and what happens after the 'fixed period' expires.

Melanie Bien, of mortgage broker Savills Private Finance, says: "There is already less choice for borrowers who have a troubled credit record or for those with little or no deposit. Borrowers need to shop around more than ever and consider what deal will suit them now and in the future."

Variable-rate deals are currently more competitive than trackers with some companies offering mortgages at half a percent lower than the best tracker deals, which currently trade at 5.49 percent. Borrowers on discounted deals often pay more in the future.

Published on October 12, 2007

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Lending Falls Again Says CML

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20 Per Cent Of Homeowners Fear Repayments

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