Finance News from Loans4.co.uk http://www.loans4.co.uk/finance_loan_industry_news.php 2008-07-25T14:28:12+01:00 http://www.loans4.co.uk http://www.loans4.co.uk.net/images/Loans4Small.jpg text/html 2008-07-24T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=379-Interest_rates_likely_to_stay_on_hold_for_the_coming_months The minutes from the last Monetary Policy Committee Meeting, held earlier this month, have backed up what many industry officials have already been predicting – that the base rate is likely to remain unchanged over the coming months, as MPC members and the Bank of England try to balance keeping a lid on inflation with boosting the struggling economy. According to reports the minutes showed that there was a three way split amongst committee members, with the majority voting for interest rates to stay on hold at 5%. Seven members of the committee including the governor of the Bank of England, Mervyn King, voted to keep rates on hold, whilst David Blanchflower, who is often the one keen to cut interest rates, voted for a rate cut. One member of the committee, Tim Besley, actually voted for a rise in interest rates. Officials have said that the fact the vote was split three ways shows just how difficult the situation is at present. The struggling economy has resulted in one member voting for a rate cut, soaring inflation resulted in another voting for a rate rise, whilst the current financial climate and hardship faced by many families has resulted in the majority voting for the rates to be kept on hold. It is thought that the base rate is likely to be kept on hold for some months now, although some industry officials have not ruled out the prospect of a rate rise in the coming months. The minutes of the lasts meeting read: 'A rate change this month would be a surprise at a time when credit and other financial markets remained fragile, and any change in rates would be better communicated alongside the Bank's August inflation report.' Whilst inflation levels have risen to 3.8%, way over the government's 2% target, recent reports have also further reflected the struggles that the economy is facing. Manufacturers have reported falling demand and orders over recent weeks, and a recent report showing a slump in retail figures has further increased concerns of recession. text/html 2008-07-23T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=378-Some_good_news_at_last_for_drivers After months of soaring petrol prices, not to mention increasing food costs, higher bills, and tighter credit conditions, there has at last been some good news for many of the UK's drivers, with an oil company and a number of supermarket giants stating that they are bringing down the cost of petrol. Whilst prices are still high per litre, the cost at the supermarkets is now significantly lower than the cost of fuel at most petrol stations. The high cost of fuel has been impacting heavily on household budgets, putting additional strain on already struggling finances. However, the lower costs now being offered by some of the major supermarkets as the result of a deal with an oil company could help to ease the strain for many drivers, especially those that have to drive longer distances or on a regular basis, and therefore tend to use more fuel. Major oil company BP said that on average the cost of fuel at its petrol stations was to fall by two pence per litre, but some of the supermarkets have applied higher reductions, with Asda cutting the cost of fuel by three pence per litre, and Morrisons cutting the cost by four pence per litre. Tesco has applied fuel cuts of up to four pence per litre. Sainsbury's is also looking to cut prices to keep up with its competitors. The rising cost of crude oil resulted in the soaring petrol prices over recent months, and in July the cost per barrel hit a record high of $147. However, since the middle of this month there has been around a 6 percent drop in the cost of crude oil, which has come down to around $132 per barrel, enabling BP and the participating supermarkets to reduce the cost of filling up. An official from Asda said that he hoped other retailers would follow suit and cut their petrol prices at a time when consumers need as much help as possible to maintain financial stability. The news of the petrol price cuts has also been welcomed by haulage companies, which have been suffering the financial consequences of paying a fortune to fill up the vehicles. text/html 2008-07-22T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=377-Tips_to_cut_back_on_your_bills_and_outgoings There has never been a better time to try and cut back on the cost of your bills and other outgoings. Whilst most of us look gloomily at our finances each month, wondering why we always seem to have very little money left at the end of the month, it is surprising how easily and quickly we could make small cutbacks and changes that could make a significant difference. For example, there are ways in which we can cut the cost of bills and insurance premiums, and collectively the savings could add up to a small fortune each year. 1. Reduce the amount that you pay on your fuel bills. We all know that fuel bills have rocketed once this year and are set to do so again later in the year. Consider switching your energy supplier by going online and looking for a better deal in this highly competitive market place – also see whether you can save more money by paying via direct debit and opting for a dual fuel package. 2. Cut the cost of your water bills. Water rates can be quite high, and in some cases, particularly if you live in a small household and tend to be away a lot, you may find yourself paying over the odds for your water. Consider having a water meter installed, so that you only pay for the water that you use, as this could potentially save you money. 3. Reduce that enormous phone bill. Like other utility sectors the world of telecommunications has become very competitive, and if you seem to be paying a fortune on your phone bill then it is well worth shopping around to see if you can switch to a cheaper provider and a better deal. You could consider bundling your telephone in with your television and Internet service if you do not do this already, as this could net you even more savings. 4. Stop paying a fortune for your mobile. Whilst some people use their mobiles regularly, many others tend to have them only for emergencies, and if you fall into the latter group then you may find that a pay as you go mobile is far cheaper. So, if you have a contract phone and you are paying a small fortune each month for the contract and line rental consider ditching the deal when the contract ends and opting for pay as you go. 5. Slash your home insurance premiums. Whilst having home insurance in place is important there is nothing to say that you have to pay the earth for it. Take some time to shop around and look at the different prices and policies, as the premiums can vary dramatically from one provider to another, and switching could save you a small fortune. 6. No holiday, no travel cover! Would you buy vehicle insurance if you had no vehicle? Of course not. Therefore, if you do not have a holiday booked make sure that you do not automatically renew your travel insurance cover when it expires – you may end up not going away for one reason or another, which means you have wasted your money on the cover. You can always get cheap cover if and when you decide to go away. 7. Look for lower cost vehicle insurance. If you are paying over the odds for your vehicle insurance then look around for a cheaper option. There are many providers that would be happy to beat your current deal, and some may offer the same level of cover at a much lower price. Consider reducing your level of cover if you have an older car, and also shop around for cheaper vehicle breakdown cover if you already have some in place. 8. Don't pay a fortune to insure your life. We all want to enjoy the peace of mind that our loved ones will be looked after when we are gone, which is why life insurance is important to many of us. But why pay a fortune for this privilege when there are so many good deals out there! Shop around and see if you can find a cheaper deal on your life cover, as this could help you to save a fair amount of cash on premiums. 9. Stop wasting money on unused memberships. You may think that having a gym membership looks impressive, but unless you actually make good use of it – which let's face it, many of us don’t once the novelty wears off – then there is little point forking out a fortune each month. You may be better off, financially and in terms of fitness, cancelling the membership and putting the money towards a home exercise machine that you can use whilst you watch television, or better still a bicycle, which will get you fit, save your gym membership costs, and save you a fortune in petrol if you use it to get to work and back! 10. Review your broadband and television service. Whilst it may seems tempting to have every channel that is available on your cable or sky television consider whether you will really use them or even have time to watch them. You could really reduce the amount you pay for your television service by cutting down on the number of channels that you have. Likewise, you may have the top broadband speed and be paying a small fortune for it, yet you only use the Internet to check your bank account and read the news! Unless you are a hard core gamer or use your Internet for business, a lower speed connection is likely to be fine, so see how much you could save by reducing your broadband speed. text/html 2008-07-21T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=376-Banks_can_keep_overdraft_fee_claims_on_hold Many pending overdraft charge claims were put on hold last summer after it was decided that a High Court test case would have to be held to determine the fairness of overdraft account charges, which were coming close to £40 a time with some banks. The test case took place in January, and this first part of the battle was a victory for the Office of Fair Trading, which has argued that the overdraft charges are unfair and unlawful because they do not reflect the cost incurred by the banks. However, there was some bad news earlier this week for consumers, after officials from the Financial Services Authority decided that banks were to be given an additional six months grace when it comes to dealing with pending overdraft claims, and this means that the thousands of claims that have been frozen for many months already could remain in limbo for a further six months at least. Campaigners have said the decision did not come as any great surprise, but did add that it did not seem fair to keep consumers hanging on for even longer for their refunds considering they had already been left waiting for so long. The FSA said that the reason behind the extension on the frozen claims was to allow the courts extra time to determine the fairness of these overdraft fees and charges. One campaign official said that banks needed to be stopped from applying further overdraft fees to the accounts of those consumers that had already made complaints. He also added that the banks needed to stop getting debt collectors onto consumers over a matter that the banks were likely to ultimately lose in court. Following the first stage of the proceedings at the start of this year the court has still not reached a decision with regards to the fairness of these overdraft bank charges, and officials from the FSA have said that it is necessary to extend the deadline with regards to dealing with pending complaints in order to provide the court with the additional time needed. However, one industry official said that the move was a 'kick in the teeth' adding that the many people whose claims had been put on hold were left in limbo unable to claim back the money to which they feel they are entitled. text/html 2008-07-20T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=375-British_Gas_prices_set_to_soar According to industry officials the cost of gas and electricity usage is set to soar over the coming weeks, with a 30% increase expected from one of that nation's major suppliers, British Gas. It is thought that British Gas could be increasing the cost of energy usage by around 30% over the next few weeks, and many think that this will lead to a variety of other energy suppliers following suit within a short space of time. Energy companies have already increased gas and electricity usage costs by a significant amount earlier this year, and for the past few weeks there have been predictions that prices will soar further before the end of the year. It seems that these energy usage hikes could come sooner rather than later according to these recent reports, and households could soon see their budgets stretched even further as the cost of energy usage soars. If the 30% hike goes ahead then the average Centrica customer could expect to ay around £800 a year for gas alone, and then electricity costs on top of this. Centrica is the parent company of British Gas. It is though that Centrica planned to bring price increases in gradually, but enormous losses are thought to have made this impossible for the energy giant. Many industry officials now think that millions of households will be plunged into fuel poverty as a result of the soaring energy costs, and this is where 10% or more of the total household income is spent on energy bills. Officials have also said that Centrica is now taking swift action to increase prices because of the huge losses that it is said to be suffering through British Gas. Centrica is expected to announce dramatic financial losses in a report that is due out over the coming week. Also, industry officials have said that further pressure may be put on energy usage costs as a result of a severe lack of energy storage facilities within the UK itself, and this could mean that households end up paying even more for their energy usage this coming winter. text/html 2008-07-17T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=374-Many_extend_mortgage_term_to_reduce_repayments A recent report has indicated that many homeowners are now flocking to try and increase the term of their mortgage loan to try and reduce repayments, hence cutting the risk of arrears and repossession. For many this has become the most viable solution to enable them to keep on top of mortgage repayments more easily and avoid overstretching the household budget any further. Many brokers have reported that customers are choosing longer term mortgages when their existing deal comes to an end and the time comes to remortgage, and experts have stated that over recent months around 10% of those that have come to remortgage have taken the decision to opt for the longer term mortgage. Whilst the traditional mortgage term is twenty five years, many customers that are remortgaging are finding that by adding an extra five or ten years to the mortgage term they can keep repayments down, and the difference can be quite significant depending on the amount of the mortgage loan. It is thought that the popularity of these longer term mortgages may continue to rise, because household budgets are already under strain due to higher bills, living costs, and petrol and food prices. The ability to cut the monthly mortgage repayment could therefore help some people to ease the financial strain and to avoid the risk of having their home repossessed. One broker reported that over the past couple of months around 10-15% of customers had either extended the term of their mortgage to reduce repayments, or had decided to switch from a repayment mortgage to an interest only mortgage, as repayments on the latter are far cheaper, although there are increased risks involved because the monthly repayments are only used to pay off the interest and not the actual loan itself. Another broker said that it was vital for customers to ensure that they take action if they cannot afford repayments on their mortgage, and two effective options were to either extend the mortgage term to bring repayments down or opt for an interest only deal to reduce the monthly repayment. text/html 2008-07-16T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=373-Saving_money_on_your_shopping As everyone knows the cost of shopping has soared over recent months, and many households have seen their shopping bills rocket recently at a time when household budgets are already overstretched. Below are some valuable tips that could help you to save money on the cost of shopping, leaving you with a little extra cash in your pocket each month. 1. Always make a shopping list: Most of us are guilty of heading to the supermarket and loading the trolley up with things that we do not need and never intended to buy. This can really bump up the cost of your food shop. Try making a shopping list of the items that you actually need. Most importantly make sure that you stick to the list and don't stick additional items into your trolley. And never go food shopping when you are hungry, as this will increase the chances of putting unneeded items into the trolley. 2. Pay less for healthy food: We all know the importance of eating fruit and vegetables, but the cost of these items can be high in the supermarkets, even when they claim to have special offers. Try branching out a little and head for the markets to buy your fresh fruit and vegetables – you could save a packet without compromising on your healthy diet. 3. Save money with own brand foods: Many of us have got into the habit of only buying brand name foods, but often we are paying for the name and packaging whereas the actual product is the same as the supermarket's own brand. Try switching from brand name products to the shop's own brand, as most items are considerably cheaper. 4. Don't spend a fortune on your clothes: It is only natural that when we see celebrities like George Clooney or Angelina Jolie dressed up in the latest designer gear that we want to rush out and buy something lavish for ourselves, but remember that most superstars have money to burn, and are often given the designer outfits for free anyway. So, unless you manage to make it big in Hollywood and start earning millions, why not give up the search for the latest designer label and opt for a non-designer brand instead. There is little point paying hundreds of pounds extra for a label that most people won't see or notice, and there are some great replica products around these days. 5. Consider whether you really need what you are buying: Most people know the feeling of wandering into a shop or supermarket during a lunch hour or after work and buying items that you had no intention of buying until you saw them. Before you start spending your cash, however, consider whether you actually really need the items or whether you are simply impulse shopping and wasting your money. 6. Don't be pulled in by special offers: Many shops and supermarkets have a really neat trick to encourage customers to purchase items that they do not really want or need, and that is through special offers such as buy one get one free, or three for two offers. However, whilst we all love to bag a bargain there is no point buying something that you do not want or need just because you get another one for free! 7. Take advantage of the sales: According to experts one pound is worth two in the sales, and therefore you could get a lot more for your money if you take advantage of January and summer sales. You can buy everything from your clothes and household gadgets to present for the coming Christmas or birthdays in the sales, and you could save yourself a fortune. 8. Do your own cooking: Today's busy lifestyles have resulted in many people relying on ready meals from supermarkets, which can be expensive and contain a lot less nutrition than home cooked meals. Try reducing the number of ready meals that you buy and rustling up some of your own meals – this can be healthier as well as cheaper, and often far tastier! 9. Save time and money: For most people heading to the crowded supermarket is a tiresome chore, but these days you can avoid the queues and save money. You can shop for your groceries and any other items online, and you will often find some very special deals on offer. This will also help to curb the temptation to put items in your trolley that you do not need. 10. Plan you meals: Industry experts have said that many people can save money by planning family meals on a weekly basis. This way you will know exactly what you need for the week, making it easier to draw up a concise shopping list, and you won't have to sit there everyday wondering what you should make for dinner! text/html 2008-07-15T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=372-Lenders_trying_to_boost_mortgage_market Lenders in the UK are taking steps to try and boost the struggling mortgage market according to a recent report. Mortgage lenders in the UK have drawn up a plan to try and boost mortgage lending even though house prices are falling and the global credit crunch has resulted in tighter credit conditions that have left many without the chance to get their hands on an affordable mortgage. Recent reports claim that the Council of Mortgage Lenders is trying to take steps that will enable banks and building societies in the UK to offer new home loans, despite the problems that have flooded the mortgage market over recent months. The CML wants the Bank of England to guarantee a market in the area of covered bonds and mortgage backed securities. Officials from the CML state that this would encourage investment through increased confidence, and this could help to boost funds in the mortgage lending sector. The CML has said that the biggest barrier in mortgage lending at present is lack of funding to finance mortgage lending operations. The result of this has been fewer mortgages and higher costs. The CML is trying to get the central banks to put into place a form of secured lending that would encourage investors to invest their money into mortgage backed securities, which would then get the mortgage market moving again through increased liquidity. The scheme would cover new mortgages, which the £50 billion mortgage rescue plan from the government does not presently do. However, there are concerns amongst some officials that the state would have to fund the scheme through underwriting the housing market. The CML hopes that through persuading the government to cooperate it can lend a helping hand to the struggling mortgage market, and this will result in increased liquidity through increased investment, and could help to give the mortgage sector the boost that it needs. The squeeze in the mortgage market started last summer, with the onset of the global credit crunch, and this has resulted in many mortgage products being taken off the market, and credit conditions becoming much tighter, which has affected mortgage lending levels dramatically. text/html 2008-07-14T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=371-Rent_rises_soar_above_level_of_inflation According to a recent report rents in London are rising at levels that are way higher than the already spiralling level of inflation, with data indicating that rents in London are rising at a rate of almost 8% a year, compared to the level of inflation which stands at 3.3%. Many consumers have been forced to seek private rented accommodation as a result of high borrowing costs, fewer mortgage products, and tight credit conditions forcing them out of the property market. The demand for private rented accommodation has soared as a result of the situation, and many landlords have said that demand is now stronger than it has been in decades. With so many people clamouring to get private rented accommodation landlords are taking advantage of the situation and are hiking up rent by around 2% per quarter in some parts of London. Many of those seeking rented accommodation are first time buyers who are now unable to get onto the property ladder due to the removal of 125% and 100% mortgages from the market, and the demand for higher deposits and arrangement fees from lenders. Even 95% mortgages are becoming scarce amongst some lenders, and first time buyers with no previous property from which to take equity are struggling to raise the money that they need. The average monthly rent in Westminster has now rocketed to nearly £2000, with Kensington and Chelsea average rents coming in at £1725. In Islington the average monthly rent was nearly £1500. Some officials have said that whilst renting in the past has been largely seen as throwing good money down the drain, which is the attitude of many older people, there has been a definite shift in attitude amongst younger consumers, and many now prefer the thought of renting given the problems that have hit the mortgage and housing industries. Figures show that since 1993 house prices have rocketed by 300%. In the same period rents have gone up by around 50%. One report showed that around 67% of younger homeowners would not think twice about selling their property and renting if they found that meeting their mortgage repayments was becoming a regular struggle. text/html 2008-07-13T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=370-Consumers_warned_to_be_careful_over_estimated_bills Consumers are being warned to be careful when it comes to estimated energy bills, with officials from the Citizen's Advice Bureau warning that many people relying on estimated bills could be paying hundreds of pounds extra every year because of the fact that their bills are estimated and not calculated based on actual readings. According to CAB reports thousands of consumers have been getting in touch with regards to the amount that they are being charged based on estimated bills. With the cost of electricity and gas already having shot up earlier this year, and set to go up again later this year, consumers are already struggling to keep on top of their energy bills. CAB official stated that in some cases consumers found that they owed the energy firms over one thousand pounds when in fact they had assumed that their direct debits covered the cost of their energy usage. Spiralling energy costs and issues with billing have been blamed for the problems. One official from the CAB said that the problem is likely to get worse because of the expected rise in gas and electricity usage later this year. One official said that households could easily rack up huge debts and bills relating to their energy usage due to the fact that the bills were estimated. He added that many may think that their bills are covered because they have direct debits set up, when in fact that direct debit payments are not covering the cost of the bills. It is thought that energy bills could increase by around 40% later this year, and this is likely to push many more households into fuel poverty and cause further financial problems for the many people that are already struggling to keep on top of household finances due to increased living costs and the effects of the global credit crunch. One customers explained how he had been paying a direct debit for £15 a month based on estimated bills for two years, and then received a bills for hundreds of pounds after an actual reading was taken. His direct debit was hiked up significantly to cover the cost of the actual bill, and he now has to find a way to cover the increased monthly payment. text/html 2008-07-10T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=369-House_prices_continue_to_tumble According to a recent report house prices in the UK have fallen by almost £20,000 since last summer, when house prices peaked just before the bubble burst. There have been many reports over recent months that have shown how house prices have been falling, and some officials now claim that house prices are tumbling at the fastest pace since the house price crash of the 1990s. The report suggests that in June alone house prices fell by a further £3,600, reflecting a fall in value of around 2%. It is now thought that house prices are on par with those in August of 2006 and are around 10% lower than they were in August of 2007. These latest figures have shown that that the annual rate of decline has sped up, and now stands at 6.1%, which is the highest since March 1993. Whilst house prices are falling officials have said that at present the value of homes is still around 40% higher than they were five years ago, around 10% higher than they were three years ago, and around 2% higher than they were two years ago. One economist stated that the average property price had rocketed by around 150% in the past ten years, and by nearly 200% since the 1990s housing downturn. One leading economist from Global Insight said that the latest reports were worrying, and that the firm had revised its figures in terms of predicted house prices falls for this year. It is now predicting falls of around 15% for this year, and around 12% for next year. He added that there appeared to be no respite in the current downturn in the housing sector, and that factors contributing to falling house prices included lack of affordability amongst buyers, tight lending conditions stemming from the global credit crunch, and very low sales activity. A number of major mortgage lenders have shown similar year on year declines in house prices, despite slight variations in house price falls. Officials also state that figures from the Bank of England relating to mortgage approvals suggest that there could be worse times ahead, which could further impact upon house prices. text/html 2008-07-09T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=368-Interest_rate_kept_on_hold_for_third_month_in_a_row Following this morning's Monetary Policy Committee meeting, the Bank of England has announced that the base rate is to be kept on hold for the third month in a row. Despite concerns over the weakening economy and speculation over the nation being on the brink of recession, the central bank appears to have prioritised on soaring inflation levels, and has therefore decided to keep the rate on hold at 5%. The Bank of England has already cut the base rate three times since December of last year, taking it from 5.75% to 5%. However, in May inflation soared to 3.3%, which is way above the government's 2% target. Until this time many industry officials had been predicting that the base rate could fall to 4% or below by the end of the year. However, the soaring inflation levels have changed these predictions. Many analysts had predicted that the central bank would decide to keep the base rate on hold following today's meeting in order to try and bring inflation back under control, and some had even speculated over whether interest rates may rise in order to tackle the problem. Today's decision, therefore, comes as no surprise to most. However, business groups and agencies had been calling for a further rate cut in light of a sharp slowdown in business in the service and manufacturing industries, and the risk of recession due to the weakening economy. The Monetary Policy Committee, which sets the rates, has had another difficult month, trying to prioritise between the slowing economy and soaring inflation levels. Whilst the central bank has resisted calls from business groups to cut rates again this month, officials from the manufacturing body EEF have said that the Bank of England needs to be prepared to cut rates again if the economy shows further signs of lowing down, despite the high level of inflation. The squeeze on consumer finances is expected to get worse over the coming twelve months, as living costs, petrol prices, and food inflation continues to soar, and officials say that this will no doubt further impact on the economy. text/html 2008-07-09T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=367-Brits_still_determined_to_get_their_holidays There is no denying that the news and reports surrounding the current financial climate in the UK have been very bleak and depressing lately, with constant talk about the global credit crunch, the housing downturn, and even an imminent recession. Petrol prices have soared out of control, the cost of food has rocketed, and energy bills have already been hiked and are set to go up again later this year. However, despite all of this, and despite the financial strain that many households are facing, a recent survey has shown that consumers are unwilling to miss out on their all important annual holiday. In fact, the results of the survey showed that the vast majority of people would rather make cutbacks on everyday purchases than have to go without their annual holiday even though money might be very tight. The survey was carried out by an online travel company, and one thousand people were polled. Out of those that took part in the survey only 2% said that they would think about cancelling their annual holiday in order to cope with their financial commitments. Over a third of respondents said that they would prefer to make ends meet by putting a stop to eating out, and a further third said that they would prefer to manage by cutting back on shopping for clothes and items for the home. A further 14% of those polled said that they would prefer to give up drinking at the pub and cutting back on smoking rather than having to give up their holiday. In fact, the survey showed that taking a holiday was more important to the overall happiness of a massive 95% of people than owning a home, having a partner, owning a car, or starting a family, reflecting just how much emphasis consumers put on their annual holidays. One official that was involved in the research said that consumers could still enjoy an annual break without spending a fortune in the current financial climate simply by looking around for good deals and looking at different destinations rather than being determined to go to just one destination. text/html 2008-07-08T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=366-Economy_at_serious_risk_of_recession According to the results of a recent business survey the economy in the UK is now at serious risk of falling into recession. Reports suggest that it could be only a matter of months before the economy of the nation slides into recession, confirming the worst fears of many businesses and consumers. Many have been speculating over just how close to recession the economy actually is over recent months, with some business agencies such as the British Chambers of Commerce calling repeatedly for further interest rate cuts from the Bank of England. However, whilst the central bank has cut rates three times since December, the base rate has remained on hold at 5% for the past couple of months, whilst the government tries to get inflation levels back down towards the 2% target after inflation soared to 3.3%. The recent report showed that both small and medium sized businesses in the service and manufacturing sectors had reported a sharp drop in business and orders over the past three months. The survey was carried out by the British Chambers of Commerce, and around five thousand of its members were polled in order to collate the data. Officials state that a recession could be just three months away of this trend continues. An economic adviser from the BCC described the outlook for the UK economy as very grim, stating that it showed a 'menacing deterioration', and adding that the economy was now facing very serious risks. He also said that the correction period could be far longer and far more challenging than was being anticipated. In the service sector there are now more firms reporting lower numbers of orders than there are reporting increased order levels, and this is the first time that this has happened since 1990. Despite the report and worrying figures many other economists have predicted that the UK may manage to scrape by without sliding into recession, but many admit that it is likely to be a close call. The shadow chief secretary to the Treasury slated Gordon Brown, stating that he had added to the woes of businesses at an already difficult time by leaving them facing increased tax hikes. text/html 2008-07-07T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=365-PM_advises_on_cutting_back_on_cost_of_food The Prime Minister, Gordon Brown, has been urging families in the UK to stop buying more food than they need in the weekly or monthly shop, as this is resulting in families throwing away food amounting to a huge amount of money each month, and is driving up the cost of food. Mr Brown said that unnecessary purchases are leading to tonnes of food being binned by families in the UK. It is estimated that the average household in the UK throws away around £8 of food each week, and with the cost of living on the rise and food inflation soaring the Prime Minister feels that this is a matter that families need to address when making their grocery purchases. Experts have recommended planning meals on a weekly basis, stating that this can prove effective in cutting back on waste. Many households have now turned to cheaper grocery stores such as Aldi or Lidl in a bid to avoid the high cost of food often found at the larger supermarket giants, but the household names such as Tesco and Asda have recently launched promotional offers in order to tempt customers back. Officials have urged shoppers to look out for buy one get one free offers on healthy foods such as fruit and vegetables, as this provides consumers with more scope to stick to a healthy diet without adding to the cost. One industry official said that consumers should sit down and work out meals for the week, and write a list according to their plans, as this will result in fewer purchases and will therefore cut back on the cost of shopping and will help to avoid waste. Amongst the items that are often wasted are bread, apples, and potatoes according to industry officials. Consumers are also urged to remember that whilst food that has a use by date on may not be safe to eat after the given date, foods that have a best before date on can still be consumed after the given date but may simply not be as fresh or tasty as it would have been prior to the best before date. Many people end up throwing food items away because they have gone a day or two past the best before date. text/html 2008-07-03T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=364-Cost_of_credit_card_rises_in_time_for_summer_holidays As most parents are only too aware the six week summer holidays are just around the corner, and pretty soon the kids will be off school for a long stretch leaving parents to find ways of keeping them entertained. As in previous years many parents may decide that this is the perfect time for a family holiday, and may have therefore decided to book a week or two away either within the UK or abroad. Of course, with the global credit crunch and higher living costs still in place it may be difficult for some to find the money to pay for the holiday and spending upfront at the moment, but many may decide to turn to their trusty credit cards to help them out with the expense of going on holiday. Unfortunately, this is something that the credit card companies seem to have picked up on, and according to a recent report a number of credit card providers have increased the rates on their credit cards just in time for the summer holidays. Essentially this means that unless you avoid making any cash transactions or withdrawals on the card and you repay the balance in full within the interest free period you will have to pay far more for the privilege of using your credit card to fund the cost of your holiday and your spending whilst you are away. It is thought that thousands of families relying on their credit cards for the summer holidays will be hit by the rate rises at a time when many are already struggling to keep on top of finances due to rising costs and bills. A number of major banks have hiked up the rates on their credit cards, and amongst them are RBS, Natwest, Barclaycard, HSBC, Capital One, Mint, and Nationwide. Officials have said that the rate rises mean that families using their credit cards this summer will end up paying millions of extra pounds in interest to the credit card companies because of the changes to the interest rate. Whilst some of the credit card firms have the increased the interest rate charged on the card by 1% there are others, such as Capital One, that have applied higher rate hikes, with the interest rate on its Platinum Mastercard rising from 9.9% to 12.9%. text/html 2008-07-02T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=363-Good_news_announced_for_savers_and_banks The government has recently announced some news that has been welcomed by both consumers and banks with regards to a rise in the level of guarantee on savers' deposits. The government's 100% guarantee on savings deposits was increased from just a couple of thousand pounds to £35,000 last year, after the run on troubled bank Northern Rock resulted in many worried savers withdrawing billions of pounds in savings from the bank over the space of just a few days. Plans have now been outlined by the government that will see the 100% guarantee apply to the first £50,000 of savings in the event that a bank hits the same sorts of problems that Northern Rock experienced at the start of the global credit crunch. This means that consumers that are depositing savings into banks will enjoy greater protection and peace of mind, and banks could benefit in two ways. The first benefit to banks is that this could encourage more people to deposit savings into accounts, which is something that is being encouraged by banks given that they are struggling to raise finances on the wholesale money markets. Many have raised the interest rates on their savings accounts in a bid to try and attract more savers and increase deposit levels. Another piece of good news for banks is that they will not have to pay any money upfront into the protection scheme – something that many banks may have been concerned about given the current financial crisis that most are facing. In the US a pre-funded scheme has to be in place to offer such protection, and this is something that the government may look at in the future. However, for now the banks have been shielded from having to pay money into the protection scheme upfront. An official from the British Banker's Association ruled out the need for pre-funding, stating: "What we want is a system that works, that intervenes quickly, that frees deposits when necessary and has the ability to top up as and when required. None of that requires a pre-fund." text/html 2008-07-01T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=362-House_prices_fall_for_eighth_month_in_a_row According to industry officials house prices in the UK fell by an average of 0.9% last month, making it the eighth month in a row for house price falls. Whilst the fall was not as severe as the 2.5% fall seen in May it has resulted in house prices now standing at 6.3% lower than they were this time last year. Compared to October of last year the average house price in the UK has now fallen by around £13,629, standing at £172,415. However, industry officials have said that Scotland has weathered the house price falls better than the rest of the UK, as house prices there are still higher than they were last year even though house price growth has fallen. Many potential buyers in the UK have decided not to take the plunge over recent months, as many are unable to get an affordable mortgage due to the effects of the global credit crunch, which includes tighter credit conditions in the mortgage and other financial sectors. Some consumers are also worried that house prices may continue to fall after they have purchased a home. The year on year fall in May stood at 4.4% but for June has increased to 6.3%. Officials from the mortgage and banking industries have said that the lack of activity in the housing sector has had a definite impact on house prices. However, they also indicated that it was those looking to move house that had decided to stay where they were rather than first time buyers. Decreased activity in the housing market will continue to affect house prices and fuel the downward trend, according to one industry official. Whilst house prices are expected to keep falling over the coming months, which is bad news for some, it could help to improve affordability for those in a position to make a purchase, and this could result in an increase in activity in the coming months. Figures show that whilst house prices in the UK are now lower than they were a year ago by 6.3%, they are 4% higher than they were two years ago, and around 9% higher than they were three years ago. One official from the Royal Institute of Chartered Surveyors was of the optimistic view that the housing downturn could be nearing an end. text/html 2008-06-30T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=361-Children_being_issued_with_plastic_by_High_Street_bank High Street bank, Lloyds TSB, has hit the headlines this week after it was revealed that it was sending out plastic cards to children as young as eleven years of age without the knowledge of their parents. Officials have expressed concern that the plastic cards can be used like standard debit cards, which means that the children can make purchases over the Internet, which could in turn lead to all sorts of problems. In the past children aged between eleven and fifteen years who had bank accounts would only be given plastic cards that allowed them to take money out of a cash machine or from the counter at the local branch of their bank. However, the freedom that comes with these cards has already seen one fifteen year old use his card to buy a range of things online, including fake ID, Viagra, and cheap cigarettes. Vince Cable from the Liberal Democrats said that the actions of the bank were clearly fuelled by greed. Children that are receiving these cards and are able to get access to the Internet could make all sorts of inappropriate purchases, and could end up spending all of the money in their accounts – often set up by parents for their future – without their parents even realising it. The cards that are being sent out are Visa cards, and therefore the recipients will be able to use them anywhere that accepts Visa. Lloyds TSB does, of course, take its fee from retailers each time the card is used, fuelling the concern that appropriate behaviour is being overtaken by financial greed. However, officials from Lloyds TSB have said that there is protection in place to ensure that the cards are not used on adult websites, and that it is ultimately the responsibility of the parents to keep an eye on their children's spending. Despite claims from Lloyds that there is protection against buying items from adult websites, the fifteen year old boy that has already used his card to purchase adult only goods and fake ID said he experienced no problems. He was rumbled only because of a customs demand for duty on the cheap cigarettes that had been purchased from abroad. text/html 2008-06-29T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=360-Central_bank_tries_to_alleviate_worries_over_rate_rises Policy makers from the Bank of England, along with its Governor, Mervyn King, have tried to alleviate fears over the base rate being hiked up in the coming months by stating that whilst the central bank needs to try and bring down sky-high inflation levels it is also keen to avoid deepening economic gloom and risking inflation falling below target. Over the past few months industry officials such as economists and analysts, bank officials, various agencies, and most consumers were convinced that the base rate would keep falling over the course of the this year. The Bank of England has already cut the base rate three times since December of last year, taking it from 5.75% to 5%. A number of officials had predicted that the base rate would fall further over the second half of the year, and that it could fall as low as 4% by the end of the year. However, government officials have indicated that the only think likely to hit the 4% mark by the end of the year is inflation, which has already soared to 3.3%, which is way over the government target of 2%. King has since stated that the central bank will have to do whatever is necessary to try and bring the level of inflation back towards target, and in a recent statement he indicated that further rate cuts would have to be put on hold so that the high rate of inflation could be tackled. However, this has quickly sparked concerns that the central bank may be looking at actually increasing interest rates again, with some financial industry professionals predicting that the rate could go up again in August and perhaps again over the remainder of the year. Officials from the Bank of England have said that they expect the level of inflation to rise to 4% by the end of the year, but that the economic outlook was encouraging in the short term. Mervyn King added that the central bank wanted to avoid damaging the economic outlook with further rate rises, as well as avoid the risk of inflation falling below target. He recently said that the Bank of England would be avoiding rushing into any base rate increases. text/html 2008-06-26T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=359-Families_could_benefit_from_lower_grocery_bills At a time when many families are suffering severe financial strain due to higher living costs, soaring petrol prices, high borrowing costs, and rocketing food prices, supermarkets have taken steps that could see some households enjoy lower grocery bills, which is certain to come as a huge relief to those struggling to make ends meet. This is because, according to a recent report, the supermarket giants have embarked upon a food price war, which could see them gaining increased custom and could see consumers enjoying greater affordability when it comes to the weekly or monthly shop. The trend has been started by Asda, which recently launched a range of staple foods priced at just fifty pence each, and this includes butter, a pack of six eggs, and a loaf of bread. Whilst the offer is set to run for this weekend, the other major supermarkets have come up with their own offers and promotions, turning this into a food price war, which is likely to be good news for the consumer on a tight budget. Tesco has slashed to price on over forty products, and has been running adverts to show how much lower in price these products now are compared to Asda. Sainsbury's is also running promotional offers until Tuesday, slashing the cost of a range of items in its stores, thus joining the battle alongside Asda and Tesco. Industry officials now expect other major stores such as Morrison's to follow suit and launch cut price ranges and promotions. Whilst in the past supermarkets have been known to pass on the rising cost of food to customers this change of tactics seems to stem from the fact that many consumers have been turning to cheaper stores such as Aldi and Lidl in order to get cheaper food. Officials state that in order to keep their customer base and not risk losing customers to cheaper stores the major supermarkets are going to have to cut the cost of food in order to remain competitive. In June annual food price inflation was close to 20%, and figures show that this could add around £1000 a year to the average household grocery bill. text/html 2008-06-25T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=358-Best_deals_on_savings_available_from_British_banks Over the past couple of years a number of foreign banks have broken into the UK savings account market, and have quickly shot to the top of the best buy tables by offering impressive interest rates to savers, leaving British bank lagging behind with relatively poor interest rates on savings. However, according to a recent report this has all started to change, as British banks do their best to pull in deposits from savers. The report suggests that British banks are now making their way to the top of best buy tables, beating off their foreign rivals, by offering high rates of interest to savers in order to try and increase deposits. The global credit crunch and the cost of inter-bank lending has hit British banks hard over recent months, and many are now focussing on attracting deposits from savers in order to try and ease the financial situation. To do this many British banks have hiked up the interest rates offered on savings accounts. Whilst certain types of savings accounts have always offered higher rates of interest to savers, the accounts that are now edging to the top of the best buy tables are instant access accounts, so savers can enjoy higher rates of interest on deposits whilst still having easy access to their cash whenever they need it. As a result of this a couple of foreign banks have been knocked off the top spot, which they have held for some time, and have been replaced by British banks. One industry official said that the global credit crunch had made more savers turn to British banks to invest their money, and with the higher interest rates now on offer both banks and consumers can benefit. She said that building societies – which often fund their lending through savers' deposits – could particularly benefit from increased deposits. She also added that the higher rates of interest on savings were likely to be around for some time. Consumers are urged to remember that the interest rate paid on savings accounts can vary from one bank to another, so it is important to compare different accounts from a number of banks, and also to consider how easy access to the account is in addition to the rate of interest being paid. text/html 2008-06-23T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=357-FSA_to_help_those_looking_for_PPI Consumers that are looking for payment protection insurance, also known as PPI, are being offered help by the UK's financial regulator in the form of the Financial Services Authority, which is now offering advice on the purchase of this type of cover. Over the past couple of years authorities have found that PPI was being mis-sold in the UK to many consumers, often being sold to those that were not eligible to claim or did not want the cover. It was previously found that some of the consumers that were being sold this type of cover, typically sold with credit cards, loans, and other forms of finance, were being sold the cover even if they were retired or self employed, which means that they would not be able to claim. In other cases the cover was being added to the finance without the knowledge of the consumers, and in some cases consumers were being led to believe that they had to take the cover out in order to qualify for finance. The purpose of PPI is to cover repayments for consumers for a set period of time in the event that they cannot make repayments themselves due to redundancy, injury, or illness. However, according to officials from the Competition Commission many consumers may have been overcharged for this cover, to the tune of billions of pounds collectively. The Competition Commission has been considering putting a cap on the cost of this cover, and even stopping it from being sold alongside loans and other financial products. The new assistance from the FSA will involve the provision of tables on the FSA website, giving consumers an idea of where to go for the best deals on cover. Consumers are reminded that PPI is an optional cover and certainly does not have to be taken through any particular provider, which means that they can afford to choose from a range of policies, and can therefore benefit from the FSA guidelines and tables. In the past some campaign groups have described PPI as a form of protection racket, and this form of cover has come under real controversy over recent years. With the help of the FSA website consumers will be able to input their needs and circumstances, and will then be able to view a number of policies that may be suitable from a range of providers. text/html 2008-06-22T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=356-Lack_of_mortgages_or_reluctance_to_buy?_What's_fuelling_the_slump_in_house_prices? Over recent months many consumers in the UK who have been hoping to sell their property have experienced real problems. Estate agents have reported their slowest period in decades, with properties sitting on the books for longer periods of time and house sales slumping. There has been much speculation as to what has caused the slump in house sales, with some industry officials blaming the lack of mortgages and tight credit conditions, and others blaming increased caution from buyers who are wary about taking the plunge at a time when house prices are set to continue falling. Recent reports have suggested that the slump in the housing market could see many industry officials losing their jobs. Around fifteen thousand estate agents are set to lose their jobs because of the housing slump according to industry officials. In addition to this many other industry officials could end up losing their jobs, or at least seeing a dramatic drop in business, such as solicitors who deal with property law, furniture retailers, builders and decorators, and furniture removal firms. Some industry officials have suggested that the reason for the slump in house sales in the UK is the fact that mortgages have dried up because of the global credit crunch, and those interested in purchasing a property can no longer get the finance to make the purchase. The number of mortgage products on the market has plunged by two thirds since last summer, and lenders have really tightened up on their lending criteria because of the effects of the global credit crunch. On the other hand other industry officials are blaming increased cautions from buyers, particularly first time buyers, due to falling house prices. Property prices have already fallen for a number of months, and some officials expect them to fall by around 10 or 20 percent over the course of this year. This has put many buyers off, as they do not want to get caught in a situation where they purchase the property and the see the value of the property plummet, which could effectively leave them facing negative equity. text/html 2008-06-19T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=355-King_issues_warning_on_household_finances The governor of the Bank of England, Mervyn King, has issued a warning in relation to household finances, which he states are set to be stretched beyond breaking point – something that families in the UK must brace themselves for. According to King, families need to be prepared for pay rises that are below the rate of inflation, soaring food and petrol costs, high borrowing costs, and increased bills, all of which add up to disaster for the average family budget. Mr King went on to state that consumers in the UK are facing the most challenging time for two decades. His grim speech involved a number of warnings, and he outlined just why families were set to suffer so much in the foreseeable future in terms of their finances. He said that the average take home pay was set to stagnate, which means that outgoings will rise far faster than income. He also hinted that interest rates could actually rise over the coming months, indicating that the Bank of England would have to take whatever action was deemed necessary to try and bring soaring inflation levels back under control. At present inflation has shot way over target, with current inflation levels at 3.3% whereas the government target is 2%. King also said that dramatic increases in the cost of gas and electricity were likely in the coming months, which has been backed up by industry officials from the energy sector recently. He went on to say that mortgage borrowing costs would also go up. He concluded by acknowledging that many households and families would be facing incredibly tough and challenging times. The Chancellor of the Exchequer, Alistair Darling, also made a speech at Mansion House, where King had been speaking, and he added that whilst the country was set to have a difficult time it was not on the brink of recession. He insisted that the economy would continue to grow despite below inflation pay rises. However, union officials have indicated that they would be prepared to take strike action rather than be forced into taking pay rises that were below the level of inflation. text/html 2008-06-18T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=354-Energy_bills_set_to_soar The news regarding energy price hikes for consumers in the UK could be even worse than anticipated, with recent reports indicating that bills could soar by as much as 40% in the autumn. Whilst it had already been declared that energy bills would have to rise in the autumn to cope with higher wholesale energy costs few thought that they would rise by as much as they are set to. Over the past few weeks reports have confirmed that energy bills are set to rise again in the autumn, putting further strain on household finances. However, the most recent report has suggested that households could end up paying over £400 more each year on their energy bills, which was far higher than had been anticipated, and this is the result of the possible 40% hike in usage costs. With inflation levels already soaring, petrol prices at record highs, and the cost of food soaring, many households are already struggling to stay on top of their finances. The cost of energy usage has already risen considerably earlier this year, which made financial management even more difficult for consumers, and the next rise could tip many households over the financial edge. The most recent predictions over energy price hikes are said to have come from energy industry sources, and it is likely that announcements over the price hikes will come in August. On top of this other recent reports have suggested that the chance of further base rate cuts this year is becoming slim, with soaring inflation levels forcing the Bank of England to put economic pressures on the back burner and focus on bringing inflation levels back under control. It is becoming more and more likely that more vulnerable households will be pushed into fuel poverty towards the end of the year if these massive price hikes are applied to energy bills. The government has already tried to put plans into place to try and control fuel poverty levels, but some campaigners have described these as simply a 'reshuffle of old ideas' that will not do enough to help those in fuel poverty. text/html 2008-06-17T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=353-Former_OFT_head_wants_increased_protection_for_consumers The former head of the Office of Fair Trading has stated that he wants to see more protection for consumers through the formal regulation of estate agents, letting agents, and managing agents. Sir Bryan Carsberg has stated that whilst anyone can set up a business as an estate agent some form of basic qualification is needed. In a recent report Carsberg also said that the controversial Home Information Packs that have come into play since last year should be voluntary. The report went on to recommend that landlord, management agents, and lettings agents needed to be "subject to appropriate regulatory requirements in order to achieve consumer protection, efficient markets and cost effectiveness." Carsberg said that he did not think that estate agency and related markets were working well because consumers simply had no idea about the qualifications of different agents and what they could expect in terms of service. He said that increased regulation of these agencies would provide consumers with increased protection and as such would provide consumers with more confidence in these markets. Under present regulations anyone is able to open up an estate agency, with no qualification necessary. However, if they are found to be misleading customers about properties they can be banned by the Office of Fair Trading. The same applies if they are found to be engaging in any other dishonest or misleading activity in relation to the agency. The former OFT head thinks that there are not enough controls in place to regulate estate agents, and even fewer for managing agents and lettings agents. He added that consumers seem to be dissatisfied with the situation as it is at present, and that changes to the regulation of the industry were vital. Another recommendation that he made was for agents to become members of some form of ombudsman scheme. The National Association of Estate Agents agreed that there was still a long way to go with the estate agency industry, stating that they supported Carsberg's recommendations because just a few bad estate agents could easily affect the reputation of the whole industry. text/html 2008-06-16T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=352-UK_sees_surge_in_inflation_levels The UK has seen a surge in inflation levels, with the rate of inflation rising to its highest level since the Labour government came into power in 1997, eleven years ago. The rate of inflation has now soared to 3.3%, and this has resulted in the governor of the Bank of England having to write a letter to the chancellor to explain why. According to figures from the Office for National Statistics the rate of inflation rose 0.6% last month, which resulted in inflation levels surging from 3% to 3.3%. The fact that interest levels surged did not come as any great surprise to industry officials, but most had predicted that the rate of inflation would rise to 3.2% and not increase to 3.3%. Mervyn King, the governor of the central bank, has now had to explain to the Chancellor of the Exchequer, Alistair Darling, why rates have risen so high. In his letter to Darling, King will also have to outline what steps the Bank of England plans to take in order to bring inflation levels back down. The government target for inflation is just 2%, so inflation has spiralled right out of control. One economist said that Mervyn King had attributed most of the rate rise on global issues, but most are aware that the Monetary Policy Committee and central bank face tough decisions when it comes to setting interest rates, as further rate cuts could send inflation spiralling even further out of control, but failure to cut rates could result in further slowing of the economy. Industry officials now think that the base rate is likely to remain on hold for the foreseeable future, as the Bank of England tries to bring inflation back down. Last month the central bank predicted that inflation could rise to 4% over the course of this year, but in his letter to Darling it is thought that Mr King has now admitted that it could rise to an even higher level. Some officials have agreed with King in stating that inflation levels are being affected by global pricing, such as that of food and fuel, and are therefore concerned that failure to cut interest rates will have no positive effect on inflation levels but will have a negative effect on the economy. text/html 2008-06-15T23:00:00+01:00 http://www.loans4.co.uk Loans4 Limited http://www.loans4.co.uk/loan_news/news.php?item=351-Slight_rise_in_level_of_mortgage_lending_for_April Recently released figures have shown that the mortgage lending levels for April for the purchase of new properties increased slightly from the previous few months, coming in at the highest level since December of last year. Officials have described the slight rise in mortgage lending for new homes as encouraging but state that this does not mean that there is to be a turnaround in the fortunes of the mortgage industry. April saw around 50,700 loans being granted for the purchase of new homes, which was a rise of around 5000 compared to the previous month. However, when compared to April of last year the figure reflected a drop of around 36%. The significant fall in lending levels has been attributed to the global credit crunch, which has affected credit conditions and has resulted in lenders cutting back on their lending. Officials from the Council of Mortgage Lenders acknowledged that lending levels this year have been significantly lower than they were last year before the onset of the global credit crunch, and added that it was likely that they would continue to be subdued over the remainder of this year, as the credit crunch continues to bite. The subdued lending figures are partly down to lenders' reluctance to give out mortgage loans to those looking to purchase homes, with first time buyers being particularly hard hit, but this is not the only factor that has led to reduced lending levels. Many people are now holding off from applying for mortgages in light of the possibility of house prices falling further and the demand for higher deposits, which has affected affordability, and this has also contributed to the reduced lending levels. In the meantime, industry officials are urging consumers to do their sums before making a mortgage application, stating that in addition to higher deposits they must also bear in mind the higher arrangement fees that mortgage lenders are looking for from potential buyers. This could make a big difference with regards to affordability for many people, particularly first time buyers who have no previous property from which to take equity.