Archive for the ‘Credit crunch’ Category
Wednesday, February 18th, 2009
Websites such as freecycle.org.uk, snaffleup.co.uk and gumtree.com offer good second-hand furniture and what’s more, it’s free. All you have to do is bring the van. In the past 12 months, Gumtree has seen a 49% increase in members using its Freebies section, and a 146% increase in the amount of those using the website’s Swap Shop. Freecycle has 1.5million members in Britain and claims to keep 600 tons of goods out of landfill per day through the 85 countries in which it operates.
You can also use auctionalfie.com for quick multiple auction searches, to help you find those bargains.
Tags: free furniture, freecycle, furniture swap, gumtree, snaffleup
Posted in Credit crisis, Credit crunch, Debt Management, Finance, Personal Finance | No Comments »
Wednesday, February 4th, 2009
Borrowers can save thousands of pounds in interest and trim years off the life of their mortgages by making regular overpayments. Even a lump sum overpayment can make a difference. Banks are currently pushing for overpayment as it helps to build their capital bases.
HSBC and Lloyds TSB are writing to all their customers informing them how to make overpayments after thousands have asked how to do this. But make sure the lender reduces the term of your mortgage, not your monthly repayments.
Tags: HSBC, Lloyds TSB, mortgage overpayment, overpayments
Posted in Consumer, Credit crunch, Debt Management, Finance, HSBC, Home loans, Lloyds TSB, Mortgages, Uncategorized | No Comments »
Sunday, October 26th, 2008
The devastating 0.5% decline in Britain’s national output in the three months ending in September was far worse than anyone had forecast. These shocking figures indicate that we are already in recession, that the downturn is going to be deep and prolonged and that many businesses will close down and that hundreds of thousands of jobs will be lost. Just to add to the pain caused by the spectacular plunge in the pound, which began when Bank of England Governor Mervyn King warned of recession early this week, has gathered momentum with sterling falling to a six-year low in latest trading.
Forecasters now expect the economy to shrink in size by at least 1% in the next year and by a further 0.5% in 2010. This would mean we must prepare for the worst couple of years in a generation.
Tags: Bank of England, Mervyn King, pound, recession, sterling
Posted in Credit crisis, Credit crunch, Government, Politics, inflation | No Comments »
Saturday, October 25th, 2008
Savers with cash frozen in accounts with the UK branch of Icesave will get back their savings through a fast-track refund scheme. Payments are expected to begin in the first two weeks of November. Although the plan has yet to be finalised, it is expected that payments will be made electronically into other accounts. This will happen in stages and the Financial Services Compensation Scheme (FSCS) will write to all ‘retail depositors’ to explain how the process will work.
Icesave customer FAQs
Tags: fast-track refund, Financial Services Compensation Scheme, FSCS, Icesave, refund scheme
Posted in Credit crisis, Credit crunch, Finance, Investments, Savings, US Property | No Comments »
Thursday, October 9th, 2008
The Chancellor yesterday morning announce his £500bn banks bailout plan which will see some of the banks part-nationalised. The plan consists of the following:
- At least £200bn for short-term lending to banks to replace funds they normally borrow through the inter-bank market.
- £25bn recapitalisation facility for Abbey, Barclays, HBOS, HSBC, Lloyds TSB, Nationwide, Royal Bank of Scotland and Standard Chartered to boost their balance sheet. However, Abbey, HSBC and Standard Chartered have already declined the offer.
- £25bn top-up fund if the first capitalisation proves inadequate.
- £250bn government guarantee of bank bond issues - again to help shore up the banks’ strained balance sheets.
Click here for more information.
Tags: Abbey, bailout plan, Barclays, Government bailout, HBOS, HSBC, Lloyds TSB, Nationwide, part-nationalisation, RBS, Royal Bank of Scotland, Standard Chartered, £500 billion
Posted in Abbey, Banking, Credit crisis, Credit crunch, Finance, Government, HSBC, Halifax, Lloyds TSB, Nationwide, Politics | No Comments »
Thursday, September 4th, 2008
The Bank of England left interest rates on hold at 5.0 percent for a fifth month running on Thursday. Given the speed and scale of the economic slowdown, however, most are convinced a rate cut is just a matter of time. Britain’s economy failed to grow in the second quarter of this year for the first time since the early 1990s and many analysts believe the country has already tipped into recession. With unemployment rising and real incomes falling, consumer confidence is at rock bottom and retailers are feeling the pinch.
Tags: Bank of England, base rate, Rate hunch, recession, unemployment
Posted in Bank of England, Credit crunch, Rate hunch | No Comments »
Friday, August 15th, 2008
Official figures show 28,658 mortgage possession orders were made in England and Wales during the second quarter of the year, up 24% on the same period a year ago. In London, the number of court orders rose by 12% to 4,052. There were large increases at several county courts including Edmonton, 34% to 395, Kingston-upon-Thames, 22 per cent to 93, and Brentford, 20 per cent to 191. A mortgage repossession order, granted by a court, entitles the claimant - usually a lender - to apply to have the occupier evicted. But a significant number of homeowners issued with an order manage to avoid being forced out.
Councils are also looking at a safety net scheme where they would take over the mortgage, or part of it, of people falling into arrears and then rent back the property.
Tags: Brentford, Edmonton, eviction, Kingston-upon-Thames, mortgage repossession, official figures, Repossession
Posted in Credit crisis, Credit crunch, Home loans, Mortgages, Property, Repossession | No Comments »
Friday, August 15th, 2008
The giant American investment bank, which employs thousands in the City, has made losses of $29bn (£15bn) for its exposure to the US subprime mortgage crisis. But it has charged the amount to its British arm, meaning it can offset the losses against corporation tax for decades to come.
Accountants say that the move, which is set to spark anger among ordinary taxpayers, is legal but unusual. All big banks have suffered from dramatic writedowns on investments linked to the US housing market but so far Merrill is the only one to charge the entire loss to the UK. The move will reduce payments to the Government at a time when its finances are in disarray. It will also raise eyebrows in the City and cause consternation at the Treasury.
The paper calculates that if Merrill starts making profits again at the rate it did in 2006 - a record year - it still won’t have to pay any corporation tax for the next 60 years.
Tags: corporate tax, Merrill Lynch, subprime, subprime mortgage crisis, US housing
Posted in Credit crisis, Credit crunch, Finance, Sub-prime, Taxation | No Comments »
Wednesday, August 13th, 2008
The major banks have made nearly £500m more from UK customers in six months despite the credit crunch through account holders by charging more for mortgages, loans and credit cards. Figures show five of the country’s biggest banks - Lloyds TSB, Royal Bank of Scotland Barclays, HSBC and HBOS - made combined half-year profits of £4.294bn, nearly £500m more than the £3.808bn raised during the same period last year.
The figures reveal the Royal Bank of Scotland increased its profits from its UK businesses by 9.2%. This is despite the global company announcing losses of £691m last week - one of the biggest in UK banking history.
Tags: Credit crunch, HBOS, HSBC, Lloyds TSB, major banks, profits, Royal Bank of Scotland Barclays
Posted in Banking, Credit crisis, Credit crunch, Finance | No Comments »
Saturday, July 12th, 2008
Builder Persimmon today axed 2000 jobs as it fights the worst slump in the housing market for 30 years. the firm has cut 1100 of its full-time workforce since the start of the year and plans to lay off 900 temporary staff. It followed 1000 job cuts at rival Barratt Developments and 900 at Taylor Wimpey - with hundreds more expected at the likes of Bovis Homes and Redrow before the bloodletting is over.
Persimmon also said house sales fell 31% in the first half of the year with the average selling price down from £189,255 to £181,500, leaving revenues 34% down on last year. Shares in the housebuilding sector have crashed by around 90% since early last year as the housing boom ground to a halt.
Tags: Barratt, Bovis Homes, house builder, job cuts, Persimmon, profits down, Redrow, selling price, shares, Taylor Wimpey
Posted in Credit crisis, Credit crunch, House builders, House prices, Property Market, Property Prices | No Comments »
