Loans News

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  • One MPC member wanted to cut interest rates

    The minutes from the last Monetary Policy Committee meeting, which took place at the beginning of October, has shown that one member of the committee voted to actually lower interest rates by 0.25% this month. However, he was outvoted by 8-1 and as a result the interest rate was kept on hold for the third consecutive month. The Bank of England has raised interest rates five times since August 2006, with a series of 0.25% rises between August 2006 and July 2007. However, since July interest rates have remained on hold at 5.75%.


  • Loan companies using aggressive tactics to recover money

    A recent report has highlighted how some lenders have been using aggressive tactics and below par methods in order to try and recover money owed by customers. The Consumer Credit Act was reviewed in order to try and stop this type of action from loan companies but according to some experts and customers these methods are still being used, causing untold stress for customers and resulting in a flood of complaints to the Financial Ombudsman Service.


  • No golden handshake for Ridley

    Former chairman of stricken bank Northern Rock will not be receiving a golden handshake after resigning late last week. Matt Ridley had been in post as chairman for the past three years, earning a salary of £315,000 a year. Many thought that he would receive a handsome payout after his resignation, but according to recent reports Ridley will not receive any payout.


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  • House prices continue to tumble

    House prices in certain parts of the UK are continuing to tumble according to a recent report from the Royal Institute of Chartered Surveyors. Figures show that the West Midlands, East Midlands and East Anglia are amongst the hardest hit when it comes to house price falls according to the figures. Many of the members of the Royal Institute of Chartered Surveyors reported falling house prices in their areas through September, and this situation had been predicted by many industry officials who are expecting the market to grow increasingly subdued over the coming months.


  • The Rock raises its rates

    Stricken high street lender Northern Rock has been branded the worst offender in the pool of banks that have raised their unsecured lending interest rates over the past few weeks. A number of banks have been raising interest rates on unsecured loans as a result of the credit crunch and turmoil that has hit the UK's financial markets. The Rock has had to cope with additional problems following the chaos that ensued when it was discovered that the Bank of England had bailed out the lender.


  • Barclays cuts it loan rates

    Major high street bank Barclays has announced that whilst its rivals are busy increasing interest rates on personal, unsecured loans as a result of the credit crunch that has hit the UK it is actually cutting the interest rates on its personal loans. According to a recent report Barclays is cutting the interest rates on its personal loans by up to 0.6%. This means that existing customers can enjoy rates of 6.8% on the BarclayLoan Plus, and the bank is confident that it can also offer impressive deals to new customers as well.


  • Time ran out for fans of Toyota or Lexus hybrid vehicles

    Picture Loans, a secured UK lender, has been pulled up by the advertising agency over one of its TV ads, after being accused of making taking out finance sound light hearted. The TV commercial showed a woman wondering around the house on the phone going about her business and being interrupted by various members of the family. Whilst on the phone to the loan company she states that it is always like that around the home, but at least she can get her credit sorted.


  • Consumers prefer fixed rate deals to cheaper tracker mortgages

    According to the results of a recent survey the vast majority of consumers in the UK would prefer the safety net of a more expensive fixed rate mortgage deal over the uncertainty of a cheaper base rate tracker mortgage, despite the predictions that interest rates may fall in months to come. The research was carried out by the Abbey, and the results indicated that around four out of five consumers - equating to 80% of consumers - would opt for a higher rate fixed rate mortgage over a cheaper base tracker mortgage if they had to remortgage. The majority of those stating that they would choose the fixed rate deal also stated that they would want to fix the interest rate for at least two years.


  • Record sum spent on credit and debit cards last year

    Credit and debit card spending increased to £91.5 billion, an increase of £4.9 million in the 3 months to last September as a growing number of borrowers used their cards to pay household expenses.


  • Banks cancelling credit cards belonging to 'good payers'

    John McFall, the chairman of the treasury select committee, has announced that banks may be cancelling the credit cards of good paying customers and giving them to riskier ones in a bid to boost profits.


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