Archive for November, 2008

Citigroup Bailout Reassures the Financial Market

Thursday, November 27th, 2008

With the US government helping Citigroup in the bailout process, shares of Citigroup climbed up by more than 50%. The US Treasury is ready to invest $20bn (£13.4bn) in return for favoured shares for the ailing Banking group. Loans and securities on Citigroup’s books have been guaranteed up to $306bn (£205bn) by the Treasury and Federal Deposit Insurance Corp.

The bailout of the Citigroup by the US government was received with positive results from the equity markets. The latest plan is followed with an investment of $25bn of public funds in the bank. Last week the shares of Citigroup plummeted more than 60% last week and its market value dropped to $20.5bn compared to $270bn in 2006. (more…)

Save Thousands by Breaking Contracts

Wednesday, November 26th, 2008

House owners who opted for expensive fixed-rate mortgages could be at an advantage by thousands of pounds by paying early with penalties. Experts are advising borrowers to break their Fixed Rate Mortgage loan in spite of exit penalties and increase in mortgage charges. Borrowers with a deposit of 25% who took a fixed loan at 6.25% on a £200,000 interest-only loan in June could save as much as £4,489 after choosing a tracker option at 4.79%. Individuals with a 40% deposit will fare better with HSBC’s lifetime tracker deal at 3.99%. Mortgage Monitor’s Les Jacobs said that many house owners have locked into fixed-rate deals for stability but are now paying more. (more…)

Properties up for Sale for Non-Repayment of Mortgages

Tuesday, November 25th, 2008

Owners are being pushed to sell their homes because they are not being able to make mortgage repayments. On an average more than 5000 properties are up for sale because of financial difficulties faced by the owners. Repossessions have increased by almost 70 per cent in 2008 in comparison to last year and according to the Council of Mortgage Lenders’ repossessions have increased to 45,000 in December from 18,900 in June. According to a survey by National Association of Estate Agents (NAEA), as many as 20 per cent of sellers had difficulty in paying for their mortgages and such figures accounted for almost 50% of the properties being up for sale. (more…)

Is the Increase in Mortgage Lending Enough

Saturday, November 22nd, 2008

Last month even though mortgage lending showed a marked improvement, it is still lower than what it was a year ago, as revealed by the Council of Mortgage Lenders. In October, mortgage lending increased by 6.9 per cent to £18.7 billion while in September it was 17.5 billion. It was the first substantial increase since the month of July and the largest since April. However, lending was still at an abysmal low from £33.3 billion of the same month last year. (more…)

Insurance for Household Boiler

Friday, November 21st, 2008

Have you ever thought about the importance of taking insurance for a household boiler? In the recent economic crisis, opting for insurance for a household boiler might seem an unnecessary expenditure but when you have a household boiler requiring repair every 20 seconds and bills coming to £500, it is worth taking insurance for household boiler. Several energy companies offer home emergency insurance cover between £4 and £26 a month depending on the type of cover. First of all before taking the cover, ensure whether your home insurance already provides cover for household boiler, else approach any standard insurance company which will provide cover for an extra fee to a normal home insurance. (more…)

Pet Poisoning on the Rise

Wednesday, November 19th, 2008

Pet lovers have experienced an increase of 34% of poisoning of their pets this year according to a recent research conducted by M&S pet insurance. The main reason for pet poisoning is nicotine. This is because even though pet owners have given up smoking, their pets especially dogs and cats chew nicotine patches and gums mistaking them for toys and other chewing items. A senior vet nurse is extremely worried at the rapid increase of nicotine poisoning among pets. Nicotine poisoning is very harmful and therefore it is best to prevent such poisoning than curing it at a later stage. Remember to keep nicotine patches, gums and cigarettes away from pets as you do in case for children. Ashtrays should also be kept at a distance. Anyway, even after precaution if you find your pets behaving in an abnormal manner like suffering from depression, tremors or vomiting, the take your pet to the nearest vet without much delay.

Withdrawal of Tracker Options a Rude Shock for Borrowers

Tuesday, November 18th, 2008

In recent times, there has been a withdrawal of several tracker mortgage options which has come as a blow to most borrowers. As a result, when homeowners plan to opt for a tracker mortgage option at the end of a deal, would be taken aback to find that they are left with limited options only. Currently, the fixed rate mortgages are very costly compared to tracker-rate mortgages. For most of the borrowers who till date had been on tracker Mortgage options for many years were in for a rude shock with the withdrawal of tracker options by many banks. Experts are of the opinion that cap and collar mortgages which were in vogue in the 1980s are ready to reappear very soon. As many as 23 tracker options have been withdrawn from the market after the Bank of England reduced the base rate to 3 per cent.

Business Leaders Welcome more Regulation of the Finance Sector

Monday, November 17th, 2008

UK’s best business leaders met over the weekend at Washington to discuss the present financial situation of the world. They laid a lot of importance on greater international control on the financial sector. In a survey by a reputed law firm, most of the 286 UK based members who took part in survey is in favour of rewriting Basel II agreement, which recommended global regulations for banks in 2004. The respondents also favored greater control of rating agencies, openness of financial sector and hedge funds. However, there has been some disagreement over restriction of bonuses banning on short selling. (more…)

Competitive New Mortgage Rates by Two Mortgage Giants

Saturday, November 15th, 2008

Lloyds TSB and Abbey, two of UK’s largest mortgage companies are ready with a whole new range of cheap tracker and fixed-rate mortgages at below five per cent and passing some of Bank of England’s drastic cut in interest rates last week to 3 per cent from 4.5 per cent. Most of the important banks are being forced to pass on the entire interest cut to the present Mortgage customers on standard variable rates. However, a fear is lurking in the minds of the new customers who think they would miss out on the fresh mortgage rates altogether. Abbey however, has announced that its two year fixed-rate deal for individuals who have a 25 % deposit, has dropped from 5.54 per cent to 4.99 per cent last week. (more…)

Mortgage Market not to Stabilize Before 2010

Saturday, November 15th, 2008

An extremely dismal scene of the UK mortgage market has been predicted by the experts. The mortgage market will get smaller by almost 80 per cent and the price of houses will fall steadily in the coming 12 months. Experts will that the mortgage market will take time to stabilize and will not happen before 2010. To add to the sad numbers, one of Though pre-tax profits increased by 11 percent, the UK’s second largest Mortgage Lender claimed to have dealings only worth £1bn of mortgages in the last six months till September, while last year in the same period dealings worth £3.6bn were done. According to predictions, the mortgage market will do businesses worth £18bn in 2008 as compared to £90bn in 2007. Figures of 2009 are not positive either. (more…)