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Borrowers are keen to pay back their credit card debts, latest figures from the BBA (British Bankers’ Association) suggest.
Although consumers put £6.8 billion of new spending on their credit cards in May, more the £7 billion was paid back. Commenting on the figures, BBA statistics director David Dooks said, “Money is still tight and people continue to pay off debt rather than save or borrow.”
Bank of England governor Mervyn King has mounted a strong defence of its low interest rate policy.
In a speech to top City figures at the Mansion House, the newly knighted Sir Mervyn highlighted the role of the record-low Bank rate in keeping the economy afloat since the financial crisis. And he signalled that, with low wage-growth and restricted lending by the banks, inflation was likely to fall back – making damaging rises in rates unnecessary.
Mortgage lending for house purchase grew in April, according to an industry body.
Figures from the Council of Mortgage Lenders (CML) show that there were 40,900 loans worth £5.9 billion in the month, as against 37,500 worth £5.5 billion in March. But the total was still down on that seen 12 months previously.
Small businesses often make the best employers. That’s the impression which emerges from recent research by Microsoft.
An extensive survey shows that the bigger the company, the less likely it is to offer flexible working conditions to its employees. It seems that smaller firms are keen to develop new working methods, often involving new technology. And they are also prepared to be more flexible about working hours.
The vast majority of first-time buyers look to their parents to help them onto the property ladder, according to a study.
Research from the Yorkshire and Clydesdale banks shows that 84% of those making their first property purchase rely on the so-called “bank of mum and dad” for financial assistance. That’s more than twice the level recorded in 2005.
Forget the Bank of England and its record low base rate – the rates we pay on personal loans are at their highest for a decade.
That’s among findings from new research by Moneyfacts. They calculate that the typical rate on a £5,000 loan is now 12.7% – the highest seen since May 2000.
Lower mortgage payments are a lifeline for many as consumers face higher household bills.
That’s the implication of a number of recent surveys, with latest research from Halifax suggesting that mortgage payments have fallen by a fifth since 2008. While mortgage borrowers have seen their annual payment drop by £956 on average, a host of other bills have risen.
The annual rate of inflation has fallen to 4% – relieving pressure on the Bank of England to raise interest rates. And it’s consumer pressure which lies behind the decrease, according to analysts.
In recent months the balance of opinion has shifted towards a rate rise, with a growing minority on the Bank’s Monetary Policy Committee ( MPC) – which actually sets rates – voting in favour. May had been widely tipped in the City and elsewhere as the likely date for a first step.
April 6th – and Worse Off Wednesday, so called. That’s because today is the day when many of the government’s tax changes take effect.
Hardest hit will be those at the upper end of the income scale – anyone, that is, earning above £42,475. The Treasury is keen to point out that some 80% of us, and especially the lower paid, will gain from the increase in what we can earn before paying tax at all (£7475). Though changes to working tax credit mean even some low earners will lose out.
(more…)The plight of first time buyers is again in the spotlight as schemes to boost the housing market come under scrutiny.
HSBC has urged the government and private sector to “come up with innovative schemes,” after three quarters of potential buyers questioned said they did not think they would be able to afford their first home within five years. Responding to a survey by the bank, a majority named the difficulty of raising a large deposit as the biggest obstacle to their aspirations.
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