Posts Tagged ‘Business Finance’

David Cameron warns he may veto EU treaty to protect Britain

Thursday, December 8th, 2011

A far-reaching deal that would save the euro is in the pipeline, however British Prime Minister David Cameron has threatened to veto this deal if it proves to be a threat to the capital city. The planned fiscal union includes proposals that would give the EU “intrusive control” over national budgets and it seems that there are worries among Conservative MPs that these regulations may threaten the city, or free-market rules. The summit will be held in Brussels and will be the site of the debate over Germany and France’s plans for more centralised control of eurozone members’ tax and spending decisions. Mr. Cameron will be under pressure to use this event to return powers to Britain.

At the summit, it will be decided who will sign the new treaty. France and Germany will be hoping that all 27 EU members will agree to this change, or at the very least the 17 eurozone countries. Mr. Cameron has said that he will only sign this treaty if “British safeguards” can be guaranteed and if they cannot, then he will not sign. People of Britain are likely to be very interested in the outcome of this summit, especially those who like to keep track of the country’s financial situation and visit lovemoney.com for money-saving tips. If Mr. Cameron is not satisfied by the deal offered at the summit, then Britain could prevent the euro members from using European institutions like the European Commission to enforce the proposed fiscal union.

The debate at the summit will therefore be crucial for all parties involved. The integrity of the EU could even be called into question if Paris and Berlin are forced to create government institutions outside the EU. Mr. Cameron has said that it is his job to protect the British national interest, and that this is what he will continue to do at Brussels.

Tags: event, Business Finance, money-saving, deal, outcome, new treaty, job

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Consumers should take early action for a financially healthier New Year

Wednesday, October 19th, 2011

Every year there are huge numbers of people who make resolutions to resolve their financial problems, reduce their outgoings, and streamline their budgets. Already, there may be people who are planning to have improving finances as their main New Year’s resolution when 2012 comes around. However, for those that plan to stick to this resolution it could pay to take action now rather than wait for the New Year to actually come around.

By taking action early, those that want to improve their finances can start the New Year as they mean to go on rather than waiting until 2012 before taking any action at all to resolve their financial problems. One of the main ways in which consumers will be looking to improve their financial situations is simply through reducing their outgoings, which is easier said than done. However, there are a number of ways in which this can be done, and the earlier consumers take action the better.

One way to reduce financial outgoings is through debt consolidation, which involves consolidating all existing unsecured debts, such as credit cards, loans, and overdrafts, into one lower interest loan. This can help many people to reduce the amount that they are paying out on their debts each month and comes with the added benefit of making it easier to deal with finances due to having fewer creditors to deal with.

Another way in which people can streamline their finances is by switching various services to a cheaper plan or provider. This can include energy suppliesr, broadband and phone services, home insurance, vehicle insurance, and more. All of these little savings can add up to a tidy monthly sum, which can help to ease the strain on finances that little bit more.

Tags: healthier new year, creditors, New Year, Business Finance, credit cards, month, credit

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Banks to tell consumers to cut back on spending to avoid mortgage debt

Wednesday, August 31st, 2011

It has recently been reported that a number of banks are planning to carry out secret credit checks on mortgage customers and then contact those that they believe are on the verge of falling into mortgage debt to tell them to cut back on their spending in other areas. Whilst the banking industry may view this as a proactive move there are many that will view it as downright intrusive and the plans have now resulted in heated debate over whether this is something that banks should be allowed to do.

According to reports banks are looking to identify which customers are at risk of falling into arrears, particularly if interest rates were to increase, and then contact them by phone to advise them to reduce their spending on things such as mobile phones, television services, internet, going out, and other things that some may consider to be luxuries or non-essentials.

Banks are set to be very blunt about the options that some of those who will be contacted will have available to them – basically, they will be told that they either need to reduce their spending or they could risk losing their home. Homeowners are being warned to focus on their homes and mortgages rather than splashing out on things that they do not need, as those that are already on the verge of problems will most certainly struggle if rates increase from their all time low of 0.5 percent.

One banking official said: “Some people won’t cope when interest rates rise, but for others there are remedies. They need to think about what is their most important debt. It is not their credit card or renewing their Sky subscription, or going out for the latest mobile technology. It is their mortgage. We want customers to look at their finances and change their behaviour.”

Tags: Interest, Business Finance, secret credit checks, latest mobile technology, important debt, mobile phones, sky subscription

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First time buyers being ousted by buy to let

Thursday, April 28th, 2011

It has been claimed that a rising number of buy to let buyers are coming onto the market and that this is resulting in an even greater number of first time buyers being ousted from the market. There have been signs of improvement in the property market of late, but it appears that those benefitting the most are investors who are buying to let.

According to reports banks are far more keen to lend to buy to let investors compared to first time buyers for a number of reasons. Buy to let investors often have a lot of experience in the market, they have proven credit history and records, and they usually have a meaty deposit to put down, all of which helps to reduce the risk to banks. Many first time buyers, on the other hand, have little in the way of deposits, are purchasing property for the first time, and sometimes have little in the way of credit history. All of this equates to a higher risk for the banks.

The high demand for rented property, which has soared over recent months, has added to the interest in buy to let mortgages, with many people preferring to plough their money into property investment where they can make a good return on their cash rather than putting it into savings where they get little or nothing in returns in the current climate.

One official said: ‘Lenders are making no secret of the fact that they would rather allocate the limited funds they do have to the lower risk option of buy-to-let loans, with deposits of 25-40%, than first-time buyers loans with 90% loan to values. As a result, the buy-to-let sector is recovering at a remarkable rate, as investors are drawn back by the need for a long-term, low-risk investment for their cash.’

Tags: Business Finance, fact, time, first time buyers, business, council of mortgage lenders

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Complaints about estate agents soar

Tuesday, March 22nd, 2011

It is a standing joke that estate agents in the UK have something of a poor reputation and are amongst the most disliked in terms of profession. However, a recent report has shown that people really do seem to be taking objection to estate agents, with the level of complaints made against this group having soared.

Figures have been released recently by the Property Ombudsman, which have shown just how much the level of complaints against estate agents has soared in the UK. The previous high when it came to estate agent complaints was reached in 2008 when the UK was still in the throes of the financial crisis and recession. However, the level of complaints has now topped this by a massive 28 percent.

According to the Property Ombudsman, Christopher Hamer, the level of complaints has now reached its highest since records began twenty years ago. The number of complaints is said to be 40 percent higher than predictions for the year. He also expressed concern that the rising level of complaints have come despite the lower transaction numbers in the property market, which would means that people are having less to do with estate agents that they have in the past.

Hamer said that complaints were ‘unacceptably high’ with the figure for last year coming in at 1338. Many of these complaints related to lack of communication between the estate agent and the consumers, with others relating to marketing and advertising or the way in which complaints had been handled. The highest number of complaints were made against estate agents in the South East according to the figures.

Hamer said: “People are less ready to be satisfied in times of economic stress to accept less than perfect service, especially when they are spending a lot of money.”

Tags: something, communication, Money, Business Finance, level, throes, profession

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Many consumers still facing huge debt levels

Wednesday, January 26th, 2011

Figures from the Bank of England have indicated that many people in the UK are still struggling with huge debt levels, with a lot of the debt having been accrued some time ago. The central bank has suggested that consumers had started to tighten their belts even before the VAT increase came into play at the start of this year. However, many still face huge levels of debt this year according to the report.

Many consumers are still paying off debt that was accrued last Christmas according to the data in the report. Figures have shown that over recent months consumers have been paying back debt rather than accruing it, and the VAT increase has resulted in more people tightening their belts so that they do not fall into further financial difficulties.

However, there are many factors that are out of the control of consumers, such as inflation levels, the VAT increase, job losses, and spending cuts, all of which could have a severe negative impact on the state of household finances. This means that even with the best of intentions many people could be set to face another difficult year with high debt levels to deal with.

Whilst personal insolvencies are said to have fallen officials are concerned that the level of insolvencies is still high. Many are calling for increased assistance for consumers to learn how to manage their money better.

One official from the insolvency service said: “Although personal insolvency levels are no longer rising, they remain stubbornly high, reflecting the high levels of personal debt that persist across the country. Prevention is much better than cure as far as personal finances are concerned. Review your personal finances frequently and make sure you are not taking on debt you can’t afford to repay.”

Tags: start, control, official, Business Finance, prevention, VAT increase, increase

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More students spend more time working

Monday, January 17th, 2011

A student’s life is meant to be all about learning, studying, moving up the educational scale, and even the odd bit of partying and travelling thrown in for good measure. However, these days more and more students seem to be joining the ‘real world’ by spending an increasing amount of time in paid employment whilst they are at college or university.

A study was recently carried out by the NUS and Endsleigh Insurance, and the information was compiled into a report called the Student Lifestyle Report. The information in the report looked at different areas of student life in order to analyse student lifestyles, and looked at areas such as debt, employment, education, and options whilst at university.

According to the analysis more and more students are now spending time in paid employment, and this is partly to cover their financial commitments and debts whilst they are at university. According to the research students worked an average of thirteen hours a week in 2008, but in 2010 this went up to an average of fifteen hours per week in paid employment.

The report also found that a rising number of students were working in paid employment during their holidays, when they were supposed to be spending time resting and studying for exams.

One official involved in the research said: “University offers a unique opportunity for students to grow and develop responsibilities, both academically and financially. It is perfectly healthy for students to seek paid employment whilst at university and in the holidays, particularly if this relieves financial pressure on living costs. However, it is equally important to make sure that students leave enough time to devote to their academic course in order to ensure they get the best possible qualifications.”

Tags: whilst, insurance, Business Finance, different areas, university, educational scale

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Will Indian bank raise competition stakes in UK mortgage market?

Monday, December 20th, 2010

The mortgage market in the UK has been very competitive for a number of years, with a range of lenders vying for the business of consumers when it came to doling out mortgage loans. However, things changed radically several years ago, when the global financial crisis swept across the UK and took its toll on the financial and property markets as well as on household finances.

Suddenly, the many lenders that had been desperate to hand out money without so much as a second glance were shying away from even considering people for mortgage loans. The competition in the mortgage sector throughout the UK plummeted as a result of so many lenders severely restricting their lending levels, and suddenly many of those that would have easily been able to get a mortgage in the past found themselves being turned away from one bank after another.

Whilst things are now said to be easing up a little more following the end of the recession, things are still tight when it comes to mortgage lending and many first time buyers and other potential buyers are still struggling to get the finance that they need to purchase property. First time buyers face a double whammy, as not only are they at the receiving end of banks’ caution to hand out mortgage loans but they have also found themselves unable to get a loan because of the high level of deposit being demanded by lenders.

However, according to recent reports the competition in the mortgage market could be improved in the UK next year, as newcomers to the market make it more likely that consumers will be able to get better deals. One of the big names that is looking to enter the mortgage market next year is the supermarket giant Tesco, which is already in the throes of developing a full service bank and believes that its entry into the mortgage market could prove beneficial for consumers.

It has now been revealed that the UK arm of the State Bank of India will be launching what it describes as ‘competitively priced mortgages’ from next year, and this will be the first Indian bank to make its entry to the UK mortgage market at a time when the nation is desperate for increased competition. The bank has confirmed that it will launch its mortgage range within the next six months, which could make it easier for consumers – including first time buyers – to get the mortgage finance that they need.

Tags: second glance, market, property markets, caution, state bank of india, UK mortgage market, Business Finance

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