26 Dec 2024

10/12/2009

UK interest rates held at .5%

The Bank of England has held UK interest rates at the record low of 0.5% in a widely-expected move.

10/12/2009

Christmas lacking cheer as top savings deals withdrawn

2009 appears to be ending in a similar fashion to 2008 for savers, with many top deals being withdrawn or having rates reduced.

Big names slash mortgage rates

Mortgage lenders have continued to cut fixed rates, causing the average two year fixed mortgage rate to continue to tumble.

Annuity rates at record lows

The prospects of securing a comfortable retirement have taken a further blow with news that pension annuity rates have hit an all time low.

Lenders target short term deals

Lenders have become accustomed to the post banking crisis world: indeed, the signs from the mortgage market indicate that credit conditions are easing and that lenders are more willing to lend.

House prices edge up further in November

House prices rose by 0.5% in November, the same rate as in October
Year-on-year house price inflation increased from 2.0% to 2.7%
Labour market has so far held up better than expected

Headlines	November 2009	October 2009
Monthly index * Q1 '93 = 100	324.0	322.3
Monthly change*	0.5%	0.5%
Annual change	2.7%	2.0%
Average price	£162,764	£162,038

* seasonally adjusted

Average two year fixed rate falls to lowest since June

The average two year fixed has fallen to 4.99%, the first time it has been below 5.00% since 23 June 2009.

A string of rate rises during July saw the average quickly rise, peaking at 5.21% by the end of the month.

However, the reduction in rates, taking nearly four months has not been so rapid.

Beware of foreign usage charges this Winter

As winter draws nearer, many people will be considering booking a holiday to sunnier climates.

While using your credit or debit card may be the easiest way to pay for things while your away, costs can soon mount up.

Buy-to-let sees signs of recovery

The buy-to-let sector has been one of the biggest casualties of the last two years, with 93% of all deals disappearing in that time.

Bond shelf-life hits new low

Savers looking to take out a fixed rate bond need to act fast after the average bond shelf-life fell to a new low of 23 days last month.

At its peak in March 2006, the average shelf-life of a fixed rate bond was 158 days.

Mortgage rates need to fall further

In the last few weeks a number of lenders including Abbey, Halifax, Leeds BS, Nationwide BS, Northern Rock and Woolwich have made moves to cut mortgage rates, but rates are still a long way of the low reached earlier in the year.

Deposit requirements ease but mortgage rates gather dust

There is a welcome relief to homeowners and first time buyers as lenders start to increase their maximum loan to values.

One in ten cut savings rates

Despite no change in bank base rate since the beginning of March, 10.1% of variable rate savings accounts have reduced.

By contrast, only 3.5% of accounts have seen rates increase as providers increasingly look to attract savers deposits

House prices rise at slower rate in October

House prices rose at a slightly slower pace of 0.4% in October
Annual house price inflation turns positive for first time since March 2008
Poor GDP figures have mixed implications for house prices
Consumer expectations consistent with stable to slightly positive house price inflation

Headlines	October 2009	September 2009
Monthly index * Q1 '93 = 100	322.1	320.7
Monthly change*	0.4%	0.9%
Annual change	2.0%	0.0%
Average price	£162,038	£161,816

* seasonally adjusted

Moneyfacts welcomes credit card reforms

Michelle Slade, spokesperson for Moneyfacts.co.uk comments:

“For far too long the card companies have been able to get away with practices that are not in the best interests of the consumer.

Loan rates continue to rise

Since Bank Rate dropped to the historic low level of 0.50% in March, loan rates have continued to increase.

In this period half of all lenders offering personal loans, have upped their rates.

Building societies hold on to consistency crown

October 2009’s Moneyfacts Consistency Survey has once again seen building societies dominating the results. Today, building societies offer customers 77% of the most consistent savings accounts in the marketplace.

The demise of the self-certification mortgage

The Financial Conduct Authority’s mortgage market review is due out next week and expectations are that the City regulator will bring new self-certification mortgages to a final end.

A cautious return, but a competitive mortgage market is still far away

The past few days have seen a flurry of activity in the mortgage market, with some high profile lenders significantly reducing rates. The following lenders have all announced rate reductions over the past week,

Providers launch Cash ISAs for over 50s, just in time

Four providers have launched brand new Cash ISAs for over 50s just in time for today’s ISA allowance increase.

House prices now at the same level as September 2008

House prices rose by 0.9% in September, the fifth consecutive monthly increase
High supply of rental property raises questions about durability of price recovery

Headlines	September 2009	August 2009
Monthly index * Q1 '93 = 100	320.6	317.8
Monthly change*	0.9%	1.4%
Annual change	0.0%	-2.7%
Average price	£161,816	£160,224

* seasonally adjusted

Commenting on the figures Martin Gahbauer, Nationwide's Chief Economist, said:

“The recent upward momentum in house prices has continued into September, with the price of a typical house increasing by 0.9% on a seasonally adjusted basis. The 3 month on 3 month rate of change – generally a smoother indicator of the near term trend – rose from 3.3% in August to 3.8% in September, the highest level since August 2004. At £161,816, the average price of a typical UK property was essentially unchanged from a year earlier, representing the first time since March 2008 that the year-on-year rate of change has not been negative. Over the first nine months of 2009, the seasonally adjusted index of house prices has risen by 4.1%, though relative to the October 2007 peak it is still down by 13.5%.

Mortgage products on the shelf start to gather some dust

The dust looks to have begun to settle on a volatile mortgage market, as the availability of a current mortgage deal lengthened from 18 to an average of 24 working days during September, the longest since October 2007.

Fewer options for first time buyers

Risk remains the overriding factor in setting mortgage rates, with competition amongst lenders continuing to take a back seat.

Providers target savers willing to lock money away

Banks and building societies are continuing to target savers willing to lock their money away in a fixed rate bond, a move that appears to be paying off.

Mortgage products slowly start to return

The number of residential mortgages available is slowly increasing, but still the market is dominated by deals for customers with more than a 25% deposit.

Half a year at half a percent

Bank of England base rate has been at 0.50% for six month now, but consumers have seen very little benefit.

Since 5 March 2009, consumers have been hit by falling savings rates and rising costs on mortgages, savings, personal loans, credit cards and overdrafts.

Stay in control of your credit card and reap the benefits

Mentioning the word ‘cashback’ in the title of a financial product is a sure way to catch the eye of a potential customer. The prospect of receiving a payment from your lender or provider can be both refreshing and appealing to many customers, particularly those looking for credit cards.

House price bounce extends into August

House prices rose by 1.6% in August
Year-on-year decline slows from -6.2% to -2.7%
Low interest rates helping to underpin prices for the moment

Headlines	August 2009	July 2009
Monthly index * Q1 '93 = 100	317.9	313.0
Monthly change*	1.6%	1.4%
Annual change	-2.7%	-6.2%
Average price	£160,224	£158,871

* seasonally adjusted

Commenting on the figures Martin Gahbauer, Nationwide's Chief Economist, said:

“The price of a typical house rose for the fourth consecutive month in August, increasing by 1.6% on a seasonally adjusted basis. The 3 month on 3 month rate of change – generally a smoother indicator of the near term trend – rose from 2.7% in July to 3.3% in August, the highest level since February 2007. At £160,224, the average price of a typical UK property is still slightly lower than 12 months ago. However, the annual rate of change rose further in August, from -6.2% to -2.7%. Over the first eight months of 2009, the seasonally adjusted index of house prices has risen by 3.2%, though relative to the October 2007 peak it is down by 14.4%.

Supermarket price war spills into finance

In recent months the contest between the supermarkets has heated up, as they fight it out to offer lower priced goods to help us all through the recession.

Survey reveals it’s not easy being green

Interest in all things ethical has undoubtedly come a long way in a relatively short space of time and the same is true of ethical investment. However, the latest survey from Investment Life & Pensions Moneyfacts has revealed that ethical funds have struggled in the more difficult stock market conditions encountered over the last 12 months.

Fixed rate mortgage margins increase again

Mortgage lenders are showing continuing reluctance to reduce the cost of fixed rate mortgages, despite around a 30 basis point reduction in the cost of funding on the swap rates market.

Fixing the problem?

Borrowers need to find three times more for a deposit, compared with two years ago when the credit crunch began.

The average LTV has fallen from 91% in August 2007, to 74% today. As a result the average deposit required on a £150,000 mortgage has increased from £13,500 to £39,000.

Battle continues to secure savers money

The battle between banks and building societies to attract savers’ money shows no signs of easing, with new competitive deals being launched each day.

Half of current accounts pay no interest on your money

If you want to earn interest on your money, then don’t leave it in your current account.

Latest Moneyfacts.co.uk figures show that 83% of all non fee paying current accounts pay just 0.10% or less, with half (49%) of accounts paying no interest at all.

Respite as the majority of savings accounts continue to pay above 0.50%

The latest issue of the monthly Moneyfacts Treasury Report on UK Savings Trends has given additional insight into how providers have no alternatives but to secure business by offering savings rates well over base rate.

Banks increase use of bonuses to boost rates

Banks and building societies are continuing to add ever bigger bonuses to their savings accounts as a temporary measure to increase the rates offered to savers.

Student finance

In a few month’s time, many students will be preparing to leave home and head off to university. For many it will be the first time they are fully in charge of their finances, with budgeting and bill paying becoming a necessary evil.

Mortgage Lenders desert long term fixed rate mortgages

This week sees Manchester BS withdrawing its 30 year fixed rate mortgage, meaning that borrowers can no longer fix their mortgage repayments for more than 15 years.

Volatility and turbulence halves the mortgage product shelf life in a month

The latest issue of the monthly Moneyfacts Treasury Report on UK Mortgage Trends has given additional insight into one of many repercussions of a volatile and turbulent mortgage market.

Graduate finance 2009

As another academic year draws to a close, many graduates are leaving university to enter very challenging times. The recession is having a detrimental effect on the number of jobs available, so it is important that students take their finances seriously.

Lenders shy away from unsecured borrowing

Latest figures from Moneyfacts.co.uk show a 37% drop over the last two years in the number of lenders offering unsecured personal loans.

Building societies increase consistency dominance

Two years ago, when Moneyfacts.co.uk started to monitor the most consistent savings accounts, building societies came out on top, taking 72% of the top places.

Bank of England keeps interest rates at 0.5%

The Bank of England's has kept the cost of borrowing unchanged at 0.5% for the fourth month in a row.

Interest rate graph

09/07/2009

Fixed rate mortgages still rising

The cost of fixed rate mortgages continues to rise, even though swap rates have continued to fall during the past month.

The average two year fixed rate mortgage today stands at 5.18%, which is just over a half percent higher than 4.67% at the beginning of June.

House price rises continued in June

House prices rose by 0.9% in June
Three month rate of change turns positive for first time since December 2007
Low supply supporting prices for now, but a sustained recovery still faces risks

Headlines	June 2009	May 2009
Monthly index * Q1 '93 = 100	307.6	304.9
Monthly change*	0.9%	1.3%
Annual change	-9.3%	-11.3%
Average price	£156,442	£154,016

* seasonally adjusted

Average 5 year mortgage hits 6.00%

The rising cost of fixed rate mortgages continues as the average five year fixed rate mortgage today hits 6.00%, the highest level since 22 December 2008.

Redundancy woes force many to seek legal advice

The need for people to protect themselves with life insurance products such as income protection cover has been highlighted by research suggesting that redundancy-related matters are forcing many to seek legal advice.

'Reluctant landlords' urged to protect their income

British consumers increasingly turning to the buy to let sector as 'reluctant landlords' in order to make some extra money have been advised to consider having income protection cover.

Savers benefit while borrowers suffer

Borrowers and savers looking for fixed rate deals are seeing very different fortunes.

As the cost of fixed rate mortgages continues to rise, so do the rates on fixed rate bonds as providers look to their savings book for funding rather than the money markets.

Negotiate the money minefield

Type debt or credit into an internet search engine and you will see hundreds of ads offering you a way out of your money troubles or a quick fix to repair your credit history

How at risk is your identity?

Criminals could be out to steal your identity even if you don’t have much money, according to new research by CreditExpert from Experian. The online identity fraud protection service has found that criminals are widening their horizons and no longer concentrate on wealthy targets who offer the richest pickings.

Ready for the economic upturn?

Recessions come and, eventually, go. This guide is designed to help you to get ready for the good times when they begin to roll once more.

Social networking scams Don’t wait until it’s too late

The boom in social networking helps us keep in touch with family, friends and an expanding social circle – but some of the most popular sites can be a magnet for fraudsters looking for ways to steal other peoples’ identities and open up new lines of credit.

Young, single – and at risk of identity fraud

Once, they focused on wealthy targets who offered the richest pickings but now identity fraudsters have broadened their scope to cover more vulnerable lower income victims living in rented accommodation, according to new research from CreditExpert, the identity fraud protection service from Experian.

Special Report - What affects the value of your home?

A 10% increase in floor space adds almost 5% to the price of a typical house and almost 7% to the price of a detached house
Adding a bedroom and bathroom by way of a loft conversion can add up to 20% to property value
House values in London are almost double those in Wales when comparing equivalent properties
Location remains the key to house values

Commenting on the figures Martin Gahbauer, Nationwide’s Chief Economist, said:

“In a buyer’s market homeowners are keen to know which characteristics are likely to make their home relatively more attractive and which ones may detract from the price. Over time, buyers’ expectations have changed and overall the general quality of property in terms of amenities is improving. Location is still the biggest factor affecting the value of property, and a house in the best neighbourhood can command a price nearly 50% higher than a similar house in an ‘average’ area. However, other characteristics also have a significant influence on the desirability, and thus price, of property. For example, extending a property to accommodate an extra bedroom can add around 11% to its price.”

Bank of England keeps rates at 0.5%

The Bank of England have kept thebasr rate unchanged at 0.5% for the third month in a row.

04/06/2009

Credit card costs continue to increase

The average credit card purchase rate continues to increase, today standing at 18.1%, up from 16.3% two years ago.

How to cut back without losing out

We all need to be careful with money at the moment – but we’re used to enjoying a high standard of living and regular indulgences. From the big things, such as a wedding or holiday, to everyday necessities, like electricity and food, these tips could help you find ways of cutting back without losing out.

Cash flow confusion – where are my £££s going?

Redundancy may be a worry for many people right now but it’s not necessarily the main cause of our financial woes. Rising bills and one-off payment shocks, such as having to replace a car, can be much more damaging, according to research from the Council of Mortgage Lenders (CML). It showed that higher food and fuel costs had the biggest negative effect on our finances last year.

House prices rise for second time in three months

House prices rose by 1.2% in May
Annual rate of decline improves sharply from -15.0% to -11.3%
Low supply levels may explain some of the improvement in price trends

Headlines	May 2009	April 2009
Monthly index * Q1 '93 = 100	304.6	300.9
Monthly change*	1.2%	-0.3%
Annual change	-11.3%	-15.0%
Average price	£154,016	£151,861

* seasonally adjusted

Commenting on the figures Martin Gahbauer, Nationwide's Chief Economist, said:

“The price of a typical house rose by 1.2% in May, providing further evidence of some improvement in housing market conditions over the last few months. At £154,016, the average house price is still 11.3% lower than a year ago, although this marks a significant improvement from the annual decline of 15.0% recorded in April. The 3 month on 3 month rate of change – a smoother indicator of
short-term price trends – rose from -3.0% in April to -0.5% in May and now stands at its highest level since January 2008.

Low savings rates but real returns continue to climb

Savings rates look to have ended their freefall, with the average no notice rate hovering around 0.65%, marginally above bank base rate.

Lenders increase margins on short term fixed

The cost of the average fixed rate mortgage has risen in the last month, with borrowers looking for longer term mortgages being hardest hit.

Cash child trust fund returns outshining stakeholder

The latest survey by Investment Life & Pensions Moneyfacts has revealed the extent to which cash child trust funds (CTF) have delivered superior returns to those from the Government’s preferred option for parents - stakeholder accounts - since the scheme was launched four years ago.

Bank of England holds rates at 0.5%

The Bank of England has held interest rates at 0.5% and announced that it will inject an extra £50bn into the UK economy.

06/05/2009

Loan rates jump 44%

Borrowers looking for an unsecured personal loan have seen rates jump by up to 44% in just two years. Those looking for a £5,000 loan have been hardest hit as the average rate jumped from 8.6% in May 2007, to 12.4% today.

Take your pick on a mortgage, if you have a 40% deposit

The number of new mortgages requiring a minimum of 40 per cent deposit has increased by 61 per cent in the last six months.

The number of mortgages requiring a 10 per cent deposit has decreased by two thirds in the last six months.

Darren Cook, Analyst at Moneyfacts.co.uk, commented:

“Banks are far from predicting the end of the housing slump and are hedging their bets by increasing the number of their best mortgages to those who are fortunate to have a 40 per cent deposit.

House prices fall slightly in April

The price of a typical house fell by 0.4% in April
Housing measures in the budget are welcome, but are unlikely to turn things around
Economic fundamentals will continue to dominate housing market prospects

Headlines	April 2009	March 2009
Monthly index * Q1 '93 = 100	300.0	301.1
Monthly change*	-0.4%	0.9%
Annual change	-15.0%	-15.7%
Average price	£151,861	£150,946

* seasonally adjusted

Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said:

“The price of a typical house fell by 0.4% in April. This reverses some of the rise seen in March, but is in line with our expectations, given the current economic conditions. April’s decline leaves the average price of a typical house at £151,861, down 15% from 12 months ago. The 3-month on 3-month rate of change, generally a smoother indicator of the short-term trend in prices, improved to -3.1% in April from -4.1% in March.

No appreciation for elderly savers

Savings rates are still in freefall with the average no notice rate currently at 0.64%, just above bank base rate.

The recent published inflation figures shows that the real return after basic tax and inflation on an average no notice savings account is 1.06 per cent for RPI, but is at a worrying minus 2.24 per cent for CPI.

Darren Cook, Senior Analyst at Moneyfacts.co.uk, commented:

“Low interest rates are geared to encourage savers to plough their savings back into the economy, but this serves little or no benefit to those who rely on interest from their hard earned wealth to subsidise their pension.

Building societies retain consistency crown

Building societies once again reign supreme, taking 77% of the top spots in the Moneyfacts consistency survey.

The string of consecutive base rate cuts has resulted in lower returns for savers and the majority of the most consistent returns are provided by the same providers.

Moneyfacts consistency survey April 2009:

Bath BS, Halifax, Principality BS and Teachers BS take the title of most consistent providers
Sainsbury’s Finance’s Internet Saver continues to be the most consistent internet account
Beverley BS Postal Account retains the title of most consistent no notice account over both 18 and 36 months

09/04/2009

The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5% and continue with £75bn asset purchase programme .

02/04/2009

Surprise bounce to March house prices

• House prices increased by 0.9% in March
• House purchase activity reaches highest level since May 2008
• Welcome signals of market improvement but too early to talk of house price recovery

Headlines	March 2009	February 2009
Monthly index * Q1 '93 = 100	301.5	298.7
Monthly change*	0.9%	-1.9%
Annual change	-15.7%	-17.6%
Average price	£150,946	£147,746

* seasonally adjusted

Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said:

“Spring brought a surprise bounce to house prices in March. The price of a typical house increased for the first time since October 2007, rising by 0.9% during the month and reducing the annual rate of fall from -17.6% to -15.7%. This brings the price of a typical house to £150,946. The moderation in the annual rate of fall is somewhat distorted by conditions last year and so it would be unwise to draw strong conclusions from the significant slowdown in the annual rate of fall. Equally, while the rise in prices in March is welcome, it is far too soon to see this as evidence that the trough of the market has been reached. The Bank of England has already taken strong measures to ease the tensions in economic and financial markets by cutting rates and commencing quantitative easing. However it will take time for these to work through into the housing market before we can expect a sustained recovery in house prices.

Base rate – one month on

Last month the Bank of England cut bank base rate to the lowest level in its 315 year history. One month on and we can see the impact the cut has had on savings and mortgage rates.

Banks v Building Societies - savings & mortgages battle

Banks have taken over the mantle from the building societies by offering the most competitive overall deals on both savings and mortgages.The building societies had offered the best range of products when it came to savings, but it appears that their members have been harder hit than bank customers by the recent cuts in base rate. While they no longer offer the best overall range of savings products, the building societies do offer the majority of best buy deals, taking 60% of the places in the Moneyfacts best buys.

UK interest rates reduced to 0.5%

The Bank of England has decided to reduce interest rates to 0.5% - a new all time low and has confirmed it will now increase the money supply to help revive the economy.

Bank of England Base rate March 2009

26/02/2009

Moneyfacts comments on the High Court win for the OFT

Michelle Slade, analyst at Moneyfacts.co.uk, comments:

“Current account customers throughout the UK will be cheering the victory of the Office for Fair Trading (OFT) over the banks.

“After a long drawn out process the OFT can now investigate these charges and customers will be hoping that the penalty they have to pay will more accurately reflect the cost to the banks of declining to pay the cheque or direct debit.

First time buyers offered little incentive to join the property ladder

Fixed rate mortgages equate to three quarters of the deals on offer to first time buyers, but with rates as much as seven times base rate, there is little incentive for new borrowers to get on the first rung of the ladder.

While the rates on variable rate mortgages have fared slightly better, first time buyers still need to pay around 3.00% above base rate.

Improving affordability helps new and existing buyers

House prices fell by 1.8% in February
More cuts in base rate expected
Falling rates reduce existing variable rate borrowers’ typical payments by a third
New buyers see significant improvement in affordability

Headlines	February 2009	January 2009
Monthly index * Q1 '93 = 100	298.3	303.8
Monthly change*	-1.8%	-1.3%
Annual change	-17.6%	-16.6%
Average price	£147,746	£150,501

* seasonally adjusted

Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said:

“The price of a typical house fell by 1.8% in February, bringing the annual rate of change to -17.6% and the price of a typical house down to £147,746, from £179,358 this time last year. Sharp cuts in interest rates have helped affordability, but have not yet affected housing market confidence sufficiently to boost the levels of new transaction activity or slow the pace of house price falls. Early signs of increased interest in housing, as reported by the pick up in new buyer enquiries, have yet to filter into sales, but do suggest that falling prices and interest rates are raising curiosity now, which could flow through quickly once confidence returns.

Savers offered glimmer of hope

Frozen money markets in the first two thirds of 2008 resulted in savers being offered increasing rates on fixed rate bonds.

Once base rate started falling in October, rates on fixed rate bonds reduced, but the margin over base rate widened as banks continued to have concerns over each other’s exposure to risk.

Historically the gap between base rate and fixed rate bonds was around 1.75%, but at it peak last month this increased to 3.15%.

Borrowers only seeing a third of base rate cuts

The latest 0.50 percentage point cut in the Bank of England is having little impact on the mortgage rates being offered.

Many lenders seem reluctant to pass the latest cuts on, resulting in the average rates hardly moving.

How to bridge the financial gender gap

Feminists used to claim that a woman needs a man like a fish needs a bicycle. Certainly, when it comes to spending, borrowing or saving money, men and women can behave as if they belong to different species.

Ten most wanted – the items on an ID fraudster’s wish list

It doesn’t take much to get hold of enough information to steal your identity. A stray envelope, an old catalogue, a bank statement or the contents of your wallet provide vital information that a criminal can use to pose as you and commit ID fraud by borrowing money and running up debts in your name.

Bank of England reduces base rate to 1%

UK reduces interest rates to 1%, The Bank of England has reduced interest rates to 1% from 1.5% in an attempt to boost the slowing economy.

Ban of England base rate Febuary 2009

29/01/2009

New Year sees little change to recent house price trend

House prices fell by 1.3% in January
Annual rate of decline reaches 16.6% but 3-month rate improves slightly
Economy now officially in recession, but considerable stimulus is in the pipeline

Headlines	January 2009	December 2008
Monthly index * Q1 '93 = 100	304.5	308.6
Monthly change*	-1.3%	-2.5%
Annual change	-16.6%	-15.9%
Average price	£150,501	£153,048

* seasonally adjusted

Commenting on the figures Martin Gahbauer, Nationwide's Senior Economist, said:

“The price of a typical house fell by a further 1.3% in January, as the deepening economic recession and financial market turbulence continued to weigh on housing market sentiment and activity. January’s decline leaves the average price of a typical house at £150,501, down 16.6% from 12 months ago. The 3-month on
3-month rate of change, a smoother indicator of the short-term trend in prices, improved for the fourth consecutive month from -4.2% in December to -4.0% in January. However, it is too early to say that this marks the start of a sustained improvement in the short term trend.

Mortgage Lending figures will struggle to improve

Until borrowers can get a better deal than moving onto their lender’s SVR, we are unlikely to see any significant improvements in lending figures.

Anyone with less than 25% deposit/equity will find that the new deals on offer are just too uncompetitive.

Find a savings account with a consistently good rate

With each base rate cut, savings providers are cutting rates by different amounts on each accounts. As a result it is hard for savers to know where to move their money to get the best deal.

Some people are happy to chase best buy deals, constantly switching their money from one provider to another, but many would rather find an account paying a consistently good rate.

Loan rates jump 3.4% in just 18 months

The cost of an unsecured personal loan continues to increase with loan rates up in some cases by 3.4% in just 18 months.

Smaller loans have seen the biggest increases with the average rate on a £1K loan today standing at 19.8%, while the average rate on a £5K loan has jumped to 12.0%.

Now risk reduced, will mortgage rates follow?

Mortgage lenders have so far failed to pass on the full impacts of base rate cuts into new mortgage deals, instead opting to pass on part of the cut and increase margins.

The average two year tracker mortgage is 2.60% above base rate and even the best deal is 1.99% above base. By comparison, at the beginning of October before the 1.50% cut, the average tracker was 1.29% above base and the best deal just 0.53% above base.

Landlords need 20% deposit or “no deal”

The buy-to-let sector has been one of the biggest casualties of the last year and a half, with 93% of all deals disappearing in that time.

Landlords unable to find less than a 20% deposit won’t find a new deal after the Post Office became the last lender to withdraw its 85% LTV deals. Deals of between 10% and 15% which used to make up 61.1% of the market, are no longer available.

Interest rates hit all-time low

The Bank of England has cut interest rates by .5% to 1.5%, the lowest in its 315-year history. The .5 % reduction brings interest rates below 2% for the first time since the Bank of England was founded in 1694.

Bank Base Rate Jan 2009

05/01/2009

Base rate cut one month on

One month on from the one per cent base rate cut and we can finally see the lie of the land. Once again it’s savers who have to endure the pain.

Savings

77% of providers have announced cuts in their savings rates with the majority once again opting to pass on up to the full cut or more.

Only 10 providers opted to pass on less than full cut including Anglo Irish Bank, Marks & Spencer Money and Manchester BS.

The average savings rate on a no notice account now stands at just 1.48%*, with 38%* of the accounts paying a rate of 1% or less.

*Figures based on a £5K balance

Michelle Slade, analyst at Moneyfacts.co.uk, commented: Read more

Mortgages

76% of mortgage providers have announced a cut to their standard variable rate (SVR), with only 19 lenders opting to pass the cut on in full.

72% of those that have announced opted to pass on between 0.15% and 0.99%, amongst them some of the UK’s biggest mortgage lenders.

Five lenders still have an SVR of 6% or above, including:

Lender	Current SVR
Stroud & Swindon BS	6.79%
Kent Reliance BS	6.75%
Chesham BS	6.70%
Market Harborough BS	6.25%
Darlington BS	6.12%
Source: Moneyfacts.co.uk 5.1.09

Michelle Slade, analyst at Moneyfacts.co.uk, commented: Read more

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.

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10/12/2009

UK interest rates held at .5%

10/12/2009

Christmas lacking cheer as top savings deals withdrawn

08/12/2009

Big names slash mortgage rates

03/12/2009

Annuity rates at record lows

03/12/2009

Lenders target short term deals

01/11/2009

House prices edge up further in November

23/11/2009

Average two year fixed rate falls to lowest since June

17/11/2009

Beware of foreign usage charges this Winter

16/11/2009

Buy-to-let sees signs of recovery

16/11/2009

Bond shelf-life hits new low

12/11/2009

Mortgage rates need to fall further

05/11/2009

Deposit requirements ease but mortgage rates gather dust

04/11/2009

One in ten cut savings rates

30/10/2009

House prices rise at slower rate in October

27/10/2009

Moneyfacts welcomes credit card reforms

26/10/2009

Loan rates continue to rise

21/10/2009

Building societies hold on to consistency crown

13/10/2009

The demise of the self-certification mortgage

07/10/2009

A cautious return, but a competitive mortgage market is still far away

6/10/2009

Providers launch Cash ISAs for over 50s, just in time

02/10/2009

House prices now at the same level as September 2008

02/10/2009

Mortgage products on the shelf start to gather some dust

21/09/2009

Fewer options for first time buyers

17/09/2009

Providers target savers willing to lock money away

14/09/2009

Mortgage products slowly start to return

08/09/2009

Half a year at half a percent

02/09/2009

Stay in control of your credit card and reap the benefits

27/08/2009

House price bounce extends into August

26/08/2009

Supermarket price war spills into finance

26/08/2009

Survey reveals it’s not easy being green

25/08/2009

Fixed rate mortgage margins increase again

10/08/2009

Fixing the problem?

10/08/2009

Battle continues to secure savers money

04/08/2009

Half of current accounts pay no interest on your money

04/08/2009

Respite as the majority of savings accounts continue to pay above 0.50%

28/07/2009

Banks increase use of bonuses to boost rates

28/07/2009

Student finance

21/07/2009

Mortgage Lenders desert long term fixed rate mortgages

17/07/2009

Volatility and turbulence halves the mortgage product shelf life in a month

16/07/2009

Graduate finance 2009