Loans News

Student loans could see higher interest rates

admin — Wed, 13 Oct 2010 10:58:22 +0000

The government is considering making changes to the student loans system, so that higher interest can be charged.

The changes may be made after a recommendation in Lord Browne’s general review of higher education.

Currently, students pay back their loans when they earn over £15,000 a year, at a low interest rate.

The review is expected to recommend removing the tuition fee cap, currently set at £3,290, and allowing the market to decide the cost of a degree.

Ministers have been considering a system of tiered interest rates – linked to graduates’ earnings.

However, the Liberal Democrat MPs within the Coalition Government are against the rise in fees and a deal has therefore yet to be reached.

From Finance Markets: Ministers consider higher interest rate on student loans

My Home Finance launched for those unable to secure a loan

admin — Thu, 23 Sep 2010 16:51:45 +0000

The coalition Government has introduced a new scheme aimed at borrowers with a poor credit history or those on a low income.

My Home Finance has been set up by the Government and the National Housing Federation (NHF), with 10 branches opening across the West Midlands by the end of October.

If successful, the scheme will expand throughout the UK from next April. The branches will be situated in busy high streets and shopping centres.

http://www.financemarkets.co.uk/2010/09/23/my-home-finance-launched-for-those-unable-to-secure-a-loan/

Report reveals lenders not passing on base rate cuts

admin — Mon, 20 Sep 2010 09:08:23 +0000

The Bank of England’s Quarterly Bulletin has revealed that High Street banks have not been passing on base rate cuts in full.

Interest rates have been held at the record low of 0.5% since March 2009 (when the country was in the midst of its worst recession in decades), but despite this, banks are not passing this saving on to borrowers.

http://www.financemarkets.co.uk/2010/09/20/report-reveals-lenders-not-passing-on-base-rate-cuts/

Survey finds credit availability has not improved

admin — Mon, 20 Sep 2010 08:47:04 +0000

A survey by the EEF engineering group has discovered that British companies are still struggling to obtain credit.

According to the manufacturers’ organisation, credit is more expensive today than two months ago.

The claim comes despite calls from the Government and business leaders to increase lending to businesses.

http://www.financemarkets.co.uk/2010/09/20/survey-finds-credit-availability-has-not-improved/

Research shows 1.2m taking out payday loan each year

admin — Sun, 15 Aug 2010 17:07:21 +0000

According to research by watchdog Consumer Focus, the number of people taking out a payday loan has quadrupled in the last 4 years.

The consumer group said 1.2 million people are now taking out a payday loan every year – borrowing more than £1 billion.

Payday loans are becoming more popular and are seen as attractive – particularly to those who have been finding it hard to secure finance.

However, it is recommended that these types of loans are best reserved as a product of last resort, since loan interest rates offered may not be competitive by comparison to high street rates.

http://www.financemarkets.co.uk/2010/08/15/research-shows-1-2m-taking-out-payday-loan-each-year/

Lloyds confirms it will cease selling PPI

admin — Tue, 27 Jul 2010 12:03:08 +0000

Banking giant Lloyds has confirmed it will no longer sell the controversial payment protection insurance (PPI).

Lloyds Banking Group, which is 41% owned by the taxpayer, is the first bank to drop PPI sales and the decision will apply to customers of all its brands including the Halifax, Bank of Scotland and the Cheltenham & Gloucester.

http://www.financemarkets.co.uk/2010/07/27/lloyds-confirms-it-will-cease-selling-ppi/

Lending criteria set to tighten further

admin — Fri, 02 Jul 2010 09:05:18 +0000

A report by the Bank of England has revealed fresh concern over mortgage lending.

In its latest Credit Conditions Survey covering the three months to early June 2010, the Bank of England said the wholesale money markets that fund the lenders is tightening and therefore, mortgages are expected to be “less readily available”.

http://www.homemove.co.uk/news/02-07-2010/lending-criteria-set-to-tighten-further.html

Competition Commission step nearer to banning PPI

admin — Sun, 16 May 2010 17:20:48 +0000

The Competition Commission has announced it is pressing ahead with its proposal to ban the sale of the controversial payment protection insurance (PPI).

It was found that millions of PPI policies were mis-sold and in September 2009, City Watchdog the Financial Services Authority (FSA), proposed a major overhaul of the rules.

http://www.financemarkets.co.uk/2010/05/16/competition-commission-step-nearer-to-banning-ppi/

Students to face higher interest rates on loans

admin — Fri, 14 May 2010 09:26:32 +0000

The Russell Group, which represents 20 elite, research-intensive universities, has suggested that graduates may have to start paying back their student loans earlier and at a higher rate of interest, in order to prevent a major funding crisis.

Following an official review of student finance and fees, the group warned that the financial sustainability of the UK’s top universities was “severely at risk” under the current system.

http://www.financemarkets.co.uk/2010/05/14/students-to-face-higher-interest-rates-on-loans/

Report reveals failings in Government’s debt advice strategy

admin — Thu, 08 Apr 2010 08:08:10 +0000

A report published by the Public Accounts Committee has branded the management of the Government’s debt advice strategy a “complete failure.”

Six years ago, the Government introduced a strategy aimed at improving the support to, and cutting the number of people who struggle with unmanageable debt.

The Department for Business, Innovation and Skills shares responsibility for co-ordinating the strategy with the Department for Work and Pensions and the Ministry of Justice.

However, there has been a complete failure to manage delivery of the strategy, according to the report.

http://www.financemarkets.co.uk/2010/04/08/report-reveals-failings-in-government%e2%80%99s-debt-advice-strategy/