Archive for April, 2008

AA Insurance On Car Insurance Premiums

Monday, April 28th, 2008

Insurance premiums were on a sturdy rise over the past one year have now seem to be stabilizing.

AA Car Insurance remarked that there has been a decline in the average insurance premiums quoted for motor cars by £3 to £4. Noticeably even the contents cover premiums were cut down by £4 to £5. Contents Insurance has expected to be rising by 1 %.

The chief executive of the company has to say that regardless of this price hold back the premiums will continue to be on a rising trend during the year.

AA insurance also assured the consumers that Baggage loss and interruptions or delays in flights from Terminal 5 would not be excluded from their policy unlike other insurance companies.

Fleet Vans Update Motor Insurance Bureau

Friday, April 18th, 2008

Fleet Vans Keep Up to Date

Reports from the Motor Insurance Bureau (MIB) report that in cue to previous warnings, Fleet vans are now actively registering their company details with the MID.

MIB has proudly announced that a mere 16 commercial motor insurance policyholders have been held for the Crown Prosecution Services. It is being upheld that this was a result of Van drivers being warned of prosecution in case of non furbishing details.

Not withstanding their fleet van’s insurance, if found guilty of not divulging details, it could lead in a fine of £5,000.

The MID has successfully helped the UK government to enforce the 4th EU Motor Insurance Directive. The directive has asked for insurance details of all vehicles in member states, through a nation wide easy access National information centre.

The Motor Insurers’ Information Centre has been effective in implementing this role of vigilance in the UK.

While conforming to the fact that there has been effective coverage about the penalty for improper registration of database, Chief executive of MIB, Ashton West agrees that there are some firms which would be fined now for non compliance.

He further warns that “Even those that escape legal action face the serious risk of having their vehicles stopped and seized if the data is not on MID.”

Bank to rescue mortgage lenders

Wednesday, April 16th, 2008

Bank ‘to rescue mortgage lenders’

In a bid to help the shrinking credit mortgage market, The Bank of England has come forward to help. This is in the face of warnings from lenders that a crop of small time providers can initiate problems.

The Financial Times, reports that the Bank has been working towards freeing the much in trouble mortgage market in UK, by reliving lenders off their mortgage loans.

The government has been warned by lenders that before implementing the plan, it should consider stopping a host of small time lenders from offering mortgages. With this only the larger and more capable ones can exist.

After Tuesday’s talks with bank honchos, Gordon Brown indicated that he had no problem in intervening to regulate the system, if the banks served the first time buyers and those with not too good a credit rating.

Reportedly, the Bank’s plan would want to exchange securities that are now powered by UK mortgages in lieu of Government bonds till a period of 1-3 years.

This scheme of the Bank might not include mortgages fixed after December last year. This is done so that new lenders are not encouraged and the average taxpayer isn’t at risk.

In talks with banking heads of Lloyds TSB, Barclays, HSBC, Royal Bank of Scotland and Nationwide, the Prime Minister discussed solutions to the credit cut phenomenon witnessed globally.

The “next steps” necessary to stabilize downward property prices and regulate the cost of borrowings, were discussed, quoted number10.

With base rates at 5%, bank chiefs are requested to ease out last weeks 0.25% interest rate cut by Mr. Brown.

With soaring wholesale market costs, lenders like the nationalized, Northern Rock Bank – haven’t passed the proposed cut.

Halifax Mortgage

Saturday, April 12th, 2008

Halifax mortgage rise hits first time buyers

Halifax has announced an increase in the cost of home loans. The announcement has come after a week of expectations in the market. The decision has come as a surprise from Halifax, which is UK’s biggest lender. It is in line with other banks which have also announced increase in the cost of their home loans. All this may have been because of the on going turbulence in the mortgage market.

It has also announced to raise the mortgage rates for its customers who have a deposit of less than 25 per cent. Halifax declares that this change would result in cheaper loans for customers with more deposit money. The decision is in sync with the continuing trend of upward pricing in the market. This decision sums up to an increase of 0.2 per cent for an average borrower having deposit of 10 per cent.

This move may have been a result of the fact that a number of lenders have either increased the rates or withdrawn from the market. In fact, only 4,679 different home loans are available as of now as compared with 15,599 in July beginning. Other banks who have followed Halifax are First Direct, the Co-operative Bank. In fact, First direct announced withdrawal of the whole of its mortgage range from new customers.

Meanwhile, in a surprise event nearly two thirds of unsecured loans were granted to borrowers without a proof of their income. It has come as one of the findings of a survey in the past two months. The risks have increased as a result of leniency in credit checks in the processing of loan applications.

End of 100 Percent Mortgages

Saturday, April 12th, 2008

Abbey announces end of 100% mortgages!

In a recent development, Abbey announced the withdrawal of its 100% mortgage deals. This decision can lead to a whole new change in the market. For starters, it could mean an end of 100% mortgage deals.

Though, this effect would not be permanent. This turn also reflects a change in market trend. In fact, it has come as a clear reminder of the condition of credit crunch in the market, which has started from past one year.

Abbey’s decision has come on close heels of Halifax’s policy. It has been in the news as it announced that only those who are prepared to put down 25% or more for their loans will get the benefits. It runs to the fact that customers would have to pay 0.35% more. These changes would surely be adopted by the Bank of Scotland and Intelligent Finance mortgage brands.

Though, it would not apply to the existing customers. Re-pricing is likely to be a new feature as concluded from a few past weeks.

In yet another turn of event, the Council of Mortgage Lenders (CML) has announced that the popularity of tracker rate mortgages has considerably risen up in February. It may have been a result of a fall in the proportion of borrowers choosing fixed-rate loans. It touched its lowest in March 2005 as it reached 52%. In fact, there was an increase of 2% in the number of borrowers who choose tracker-rate loans. It increased considerably from 33% to 35%.

Moreover, house loans decreased by 3.5%. CML also expects remortgaging to remain stronger and likely represent a higher percentage for the future. It can be attributed to the fact that the number of borrowers have considerably increased and would continue to be so. All it may be due to the come off fixed and discounted rates in 2008.