http://www.mform.co.uk/ Mortgage and financial news from mform.co.uk en-gb ©2007 mform.co.uk http://blogs.law.harvard.edu/tech/rss News http://www.mform.co.uk/assets/images/logos/mform-135x50.jpg http://www.mform.co.uk/mform/mform?rss=newsfeed Wed, 23 Jul 2008 22:00:13 +0100 Wed, 23 Jul 2008 22:00:13 +0100 http://www.mform.co.uk/news/article.php?key=17698&rss=mform 23-07-2008T20:22:05+01:00  
Research by Mintel shows 51 per cent of people still class themselves as comfortably well-off or managing, compared to 64 per cent in 2006.
 
Meanwhile, there has been a jump in those saying that even though they are getting by, things are pretty tight - rising from 25 per cent in 2006 to 39 per cent this year.
 
The number of people struggling and missing debt repayments has doubled but remains low at just four per cent.
 
A total of 46 per cent of adults have outstanding non-mortgage debts.
 
"The good news is that the vast majority of people can still afford to make ends meet," Toby Clark, Mintel senior finance analyst said.
 
"But there has clearly been a deterioration in people's perception of their financial situation over the past two years, as rising interest rates and higher living costs have really started to take hold."
 
The effects of rising prices were also seen in the number of people turning to credit cards to make ends meet.
 
As credit card borrowing and the cost of living rise, savings fall.
 
The Mintel research shows the number of people who have emergency savings has fallen from 43 per cent in 2006 to 29 per cent this year. 
 
This matches finding from the Office for National Statistics which puts the savings ratio down to its lowest level at just over 1.1 per cent for the first quarter of 2008.
 
Young people were particularly unlikely to have savings, with 53 per cent having no savings and unsecured debt.
 
"Rising food and fuel prices combined with higher interest rates means that people are now having to find quite a bit more money each month to maintain their standard of living," Mr Clark said.
 
"And while some are clearly using plastic to cover the rising living costs and mortgage repayments, others are dipping into their savings."
 
He added the savings ratio is also on the decline because for many there is simply nothing left in the pot at the end of the month to put away.
 


mform]]> http://www.mform.co.uk/news/article.php?key=17698 Finance Economy Business http://www.mform.co.uk/news/article.php?key=17714&rss=mform 23-07-2008T15:46:21+01:00
According to the bank, the product is suitable for homeowners looking to remortgage their property.

The step down tracker mortgage had a decreasing rate of interest over three years and has no legal or valuation fees attached.

Head of branch mortgages at NatWest Andy Fell noted that there is "uncertainty and complexity" in the mortgage market at present.

Mr Fell described the product as "competitive and transparent", adding: "With no set up fees and the downward stepping of the interest rates, we are confident that our new deal will be popular with remortgage customers."

The mortgage is available to those seeking a deal of up to 90 per cent loan-to-value.

Already this week, Halifax announced that it is to cut interest rates on a number of its mortgage products.

Brought to you by www.mform.co.uk the UK's best independent mortgage comparison site

mform]]> http://www.mform.co.uk/news/article.php?key=17714 Mortgages Property http://www.mform.co.uk/news/article.php?key=17712&rss=mform 23-07-2008T11:51:46+01:00
The new document was created by the Local Authority Coordinators of Regulatory Services (Lacors), the Chief Fire Officers' Association and the Chartered Institute of Environmental Health, in an effort to raise awareness on this theme.

Chairman of the NLA David Salusbury commented that the measures are fantastic news because previous assistance was somewhat confusing, something that may be of interest to those with mortgages.

"Fire safety legislation applies to all types of housing, whether it is owner-occupied, rented, single occupancy or a house in multiple occupation. The new Lacors guidance sets out recommendations for all these categories," he commented.

He added that the end result is clear evidence of what the end product can be of comprehensive dialogue between different parties.

Communities and Local Government was also involved in the creation process, with owners now given the chance to assess their fire prevention channels.

mform]]> http://www.mform.co.uk/news/article.php?key=17712 Legislation Finance Property Legal http://www.mform.co.uk/news/article.php?key=17710&rss=mform 23-07-2008T11:29:43+01:00
US light sweet crude dipped to $125.63 a barrel, compared to the July high of $147 a barrel. London Brent crude also fell yesterday by $3.23 to $129.38 a barrel.

Falling prices have been attributed to the news an approaching tropical storm unlikely to affect supply.

In addition, the high price of oil – still 30 per cent higher than at the beginning of 2008 – is apparently putting off US motorists, lowering demand.

A survey from MasterCard found US gasoline demand dropped last week for the thirteenth week in a row and is down 2.2 per cent from the beginning of the year.

A strengthening dollar also made oil less attractive as a hedge for investors. Speculators have been blamed for the soaring price of oil but a report out today from a US government agency concludes investors are not at fault.

The US Commodity Futures Trading Commission said it "does not support the proposition that speculative activity has systematically driven changes in oil prices," in its interim report.

The falling price of oil has led to several UK supermarkets that operate petrol stations lowering their prices for motorists.

mform]]> http://www.mform.co.uk/news/article.php?key=17710 Finance http://www.mform.co.uk/news/article.php?key=17708&rss=mform 23-07-2008T10:42:18+01:00
Minutes from the monetary policy committee (MPC) show seven members voted to maintain the status quo with interest rates at five per cent, but David Blanchflower voted for a cut and a further member, Tim Besley, opted for an increase.

Mr Blanchflower has been vociferous about demand to cut the cost of borrowing – saying without it the UK faces the threat of recession.

Meanwhile Mr Beasley pushed for an increase in interest rates to keep "inflation expectations anchored".

With the UK currently facing the threat of high inflation, usually defeated by raising interest rates, and the danger of recession, countered by interest rate cuts, the minutes reveal "the decision was a difficult one".

The minutes showed inflation could be drawn down by the slowing economy meaning "a higher level of Bank rate would not be needed".

The MPC also found increasing interest rates to lower inflation may mean it could eventually fall to low.

The minutes stated: "Keeping Bank rate at five per cent when the economy was slowing was arguably already sending a strong signal of the MPC’s commitment to reducing inflation.

"A rate change this month would be a surprise at a time when credit and other financial markets remained fragile."

Howard archer, chief UK economist at Global Insight, said: "The three-way split in the MPC's voting in July encapsulates the predicament that the Bank of England is in over a deepening economic slowdown yet elevated and rising inflation.

"The overall impression we get is that most MPC members are still firmly in 'wait and see' mood given the current major uncertainties surrounding both the medium-term inflation and growth outlooks."

He added interest rates were most likely to come down in 2009 to as much as four per cent, once the inflation threat had passed.





mform]]> http://www.mform.co.uk/news/article.php?key=17708 Business http://www.mform.co.uk/news/article.php?key=17706&rss=mform 23-07-2008T10:33:47+01:00
British Banking Association statistics showed June's mortgage lending rose by £3.8 billion but this was weaker than in May, when lending rose by £4.5 billion.

Homeowners are still remortgaging, with levels similar to the previous month, while personal deposits increased by £2.2 billion as people saved more over the month.

Unsecured borrowing was slower, with an extra £0.3 billion spent on consumer credit in June compared to £0.4 billion in May.

BBA statistics director, David Dooks, said: "Another record low number of mortgages approved by the banks for house purchase means that the whole market is likely to be at its least active since the early 1990s.

"The pressure on household finances is being reflected in subdued consumer borrowing, with spending on cards lower than of late and borrowing on personal loans and overdrafts being comparatively weak."

The level of property transactions has continued to fall and house prices are in decline as the availability of mortgages dry up and consumers cut back on spending.

However, the Bank of England has refused to cut interest rates to support the economy as it attempts to control rising inflation.

Royal Institute of Chartered Surveyors (Rics) chief economist June Simon said: "The continuing lack of availability of mortgage finance is proving a major drag on the level of property transactions and is increasingly being felt in the real economy.

"The modest cuts in the costs of borrowing seen over the past few weeks will unfortunately provide little relief for first time buyers. Indeed, the fact that Tim Besley actually voted for a rate hike at the latest MPC meeting suggests that it is premature to expect the Bank of England to provide any support anytime soon."

Rics wants to see the government shake-up stamp duty to assist first-time buyers and review the provision of mortgage finance.

mform]]> http://www.mform.co.uk/news/article.php?key=17706 Finance Property http://www.mform.co.uk/news/article.php?key=17704&rss=mform 23-07-2008T09:50:44+01:00
The index was up 73.30 points to 5,438.10 at 9:32 – putting it on a par with Friday's rallying closing price.

The financial sector provided the fuel for the boost, with HBOS up 6.70 per cent and Royal Bank of Scotland rising 5.53 per cent.

Insurers Friends Provident and Prudential climbed 5.12 per cent and 4.54 per cent respectively.

The falling oil price helped British Airways rise 4.87 per cent.

Falling oil values – to $125 a barrel from a recent peak of $147 – saw commodity stocks come down.

Ferrexpo dropped 3.36 per cent, Lonmin fell 2.44 per cent and Anglo American was down 1.95 per cent.

Packaging firm Rexam fell 2.28 per cent and Enterprise Inns was down 1.84 per cent, after yesterday's disappointing results.

Outside the FTSE 100, construction saw some confidence return.

Taylor Wimpey was up 8.57 per cent, Barratt Developments rose 6.34 per cent and Berkeley Group was up 5.90 per cent.

Rises were also seen for Debenhams (up 8.02 per cent), Bradford & Bingley (up 7.01 per cent) and asset managers Bluebay (up 6.71 per cent).

Sterling was up against the dollar and the euro to $1.99375 and €1.26460 0 making $1 worth £0.50145 and €1 worth £0.78982.


mform]]> http://www.mform.co.uk/news/article.php?key=17704 Finance Economy Business http://www.mform.co.uk/news/article.php?key=17702&rss=mform 23-07-2008T09:17:32+01:00
Shares will be bought back at a price of no more than 105 per cent of average price of stock for the five days before the trade.

The move follows a fall in the Vodafone's share price yesterday after the firm warned investors full year revenue would be at the bottom of its £39.8 billion to £40.7 billion outlook range, blaming recent "economic weakness".

The firm announced the £1 billion share repurchase programme was a response to the market reaction to yesterday's figures.

"This action reflects the board's belief that the share price significantly undervalues Vodafone," a statement read.

The deal remains subject to approval at the Vodafone AGM on July 29th.

The Vodafone share price rose 2.44 per cent on the news to 132.15p, after a 20p drop yesterday.


mform]]> http://www.mform.co.uk/news/article.php?key=17702 Finance Business http://www.mform.co.uk/news/article.php?key=17700&rss=mform 23-07-2008T08:52:17+01:00
A legal statement from the Local Government Association says the approach to eco-towns taken by the government is "deeply flawed".

It comes as the Department for Communities and Local Government prepares to publish a planning policy statement outlining guidance on how the eco-towns should be constructed.

The government announced the first 15 locations shortlisted to become eco-towns in April this year. From these the final ten locations are expected to be confirmed by the time parliament returns from its long summer recess in October.

Critics had argued the proposed eco-towns in fact threatened the environment, being built on greenbelt land, posing a risk to wildlife or overturning previous planning decisions.

mform]]> http://www.mform.co.uk/news/article.php?key=17700 Finance Politics Property Environment http://www.mform.co.uk/news/article.php?key=17696&rss=mform 23-07-2008T00:01:00+01:00
Additionally, “70 per cent of 25-34 year olds have stopped visiting a website altogether because of intrusive or irrelevant advertising,” according to the Opinion Matters online poll taken in April.

Intrusive or irrelevant advertising noted by those surveyed pinpointed specific brands as repeat offenders, and also classified specific irritants such as noisy ads, pop-up ads and ads that were difficult to close, minimise or click away from.

“The industry must re-examine what the web does best and create content that is relevant and entertaining, and that plays to consumer interests,” said Peter Mitchell, CEO of WWAV Rapp Collins Media Group.

Taking in to consideration national averages, 73 per cent of users have left their favourite sites because of annoying ads, and 59 per cent national average have stopped visiting altogether. Younger users will continue to bring less traffic to sites unless advertising methods are changed, the survey suggests.

“The difference in behaviour between younger and older web users is testament that the mass audience model is a strategy that doesn’t necessarily work in the online environment,” said Russell Goldsmith, co-founder and digital director at HowTo.tv


mform]]> http://www.mform.co.uk/news/article.php?key=17696 Finance Technology Business IT and Internet http://www.mform.co.uk/news/article.php?key=17692&rss=mform 22-07-2008T17:32:46+01:00
The index has risen for the last three sessions, and was up 0.5 per cent last night.

Vodafone led the losers, falling 13.57 per cent to 129p on a gloomy outlook in its trading statement this morning.

Other telecoms stocks tumbled, with Carphone Warehouse dropping 5.53 per cent and BT down 3.53 per cent.

Enterprise Inns also weighed on the FTSE 100, falling 13.38 per cent on similarly pessimistic predictions.

Severn Trent posted a more optimistic trading statement this morning, in line with expectations, and its stock rose 3.79 per cent as a result. The news also boosted United Utilities, which was up 3.19 per cent at the end of trading to 728.5p.

mform]]> http://www.mform.co.uk/news/article.php?key=17692 Finance http://www.mform.co.uk/news/article.php?key=17690&rss=mform 22-07-2008T16:57:24+01:00 mortgages, the Association of Home Information Pack Providers (Ahipp) has criticised the latest pledge by the Conservatives to scrap home information packs (Hips) if they win the next general election.

Director general of Ahipp Mike Ockenden hit out at comments by shadow housing minister Grant Shapps that: "Given a Conservative government will scrap this red tape, investing in home information pack companies should now carry a health warning."

Mr Shapps made the comments in response to news that Hips provider Hip Facilities Group is to cease trading at the end of August, 24dash reports.

The firm blamed the state of the housing market but Mr Shapps said it was a "blow to the credibility" of the scheme.

Mr Ockenden labelled the comments "astonishing" and asked how Mr Shapps would respond to those who had invested in Hips when axing them in the future.

The Ahipp boss said Hips would be "accepted by all" as an established part of the housebuying process by the time any Conservative government comes to power.


mform]]> http://www.mform.co.uk/news/article.php?key=17690 Legislation Property http://www.mform.co.uk/news/article.php?key=17688&rss=mform 22-07-2008T12:19:08+01:00
Mr King told a Treasury select committee "the reason why Northern Rock dragged on and on and on was the absence of any special resolution regime," adding no-one had the power to implement such a scheme at the time, making nationalisation the only alternative.

"We certainly would have handled it differently," Mr King told the committee.

Mr King also blamed the lack of a 100 per cent deposit guarantee on the bank run on Northern Rock, as hundreds of savers worried about losing their money queued to close their accounts last year.

Making banks pay for a compensation fund in advance would avoid similar problems in the future, Mr King said.

However, the Bank of England could have acted faster to guarantee Northern Rock, Mr King admitted.

New regulations introduced by the government in the wake of the crisis mean the central bank will now have the power to step in quickly if a bank is in trouble.

Mr King said the new powers would make an "enormous difference" to the bank, although he added he could not promise the bank would not make mistakes.

However, he disagreed with part of the new proposals which state that the Bank of England can only recommend the Financial Services Authority (FSA) step in if a bank is struggling.

"It's true that I would have preferred an outcome in which either the Financial Services Authority or the Bank of England could have initiated the trigger. We will not have the right to initiate the trigger.

"We will have the right to make a written recommendation to the FSA so that they pull the trigger. That's clearly not the same thing."

Today, the Treasury launched a new consultation on new special resolution regime powers for regulators to stop another Northern Rock crisis.

Chancellor Alistair Darling said: "No system of regulation can or should prevent the failure of each and every firm, but we must do everything possible to reduce the impact of problems which could pose a wider threat to stability.

"The challenge is to ensure that the authorities can act quickly and decisively to take appropriate steps to resolve failing banks. These proposals for a special resolution regime give the authorities the full range of powers they need."

mform]]> http://www.mform.co.uk/news/article.php?key=17688 Economy http://www.mform.co.uk/news/article.php?key=17686&rss=mform 22-07-2008T11:09:45+01:00
The joint poll run by the Chartered Institute of Housing (CIH), Mendip Housing and the Aster Group at last month's Glastonbury Festival established that 27.8 per cent were still living at home with their parents due to the absence of the sort of homes they wanted, the CIH revealed.

However, the majority (54.8 per cent) stated they still aspire to be homeowners in five years, either outright or with a mortgage.

Mendip Housing's managing director Alan Brunt said one piece of "good news" to emerge from the survey was that 82 per cent were happy with the level of affordable housing being built in their area.

Urban research body Centre for Cities recently noted that a lack of affordable housing was a significant issue in Bristol, the largest city in the region.

Brought to you by www.mform.co.uk the UK's best independent mortgage comparison site

mform]]> http://www.mform.co.uk/news/article.php?key=17686 Property News Property http://www.mform.co.uk/news/article.php?key=17684&rss=mform 22-07-2008T10:49:12+01:00
Those people looking for a new mortgage are set to face application fees that are on average 20% higher than a year ago, according to analysis* from mform.co.uk.

The research revealed that of the best-buy mortgages reviewed in August 2007, the average application fee was £738.33, but this had risen to £889.69 by July 2008. However, there were some bigger increases than this, with the average fee for a best- buy three year fixed deal rising from £590.40 to £938 – an increase of 58.8%. However, between August 2007 and July 2008, the fees on the best-buy discounted rate mortgages only increased from £857.2 to £951.62 – a rise of 11%.

Francis Ghiloni, mform.co.uk, Marketing and Business Development Director, said: “With the current challenges facing the mortgage market, it is not surprising to see that fees have risen by so much. This means that it has never been more important to look at the true cost of your mortgage, taking into account the interest rate but also any fees and charges that you have to pay."

mform.co.uk has recently launched a new service that enables customers to rate their current deal and any new offer from their lender against the best in the market taking into account early repayment charges as well as any arrangement fees.

It is a major enhancement of the existing mform.co.uk service which allows customers to fully compare all mortgage deals on a true cost basis – and crucially it will show exactly how much borrowers will save or not.


mform]]> http://www.mform.co.uk/news/article.php?key=17684 mform Press Release Property http://www.mform.co.uk/news/article.php?key=17682&rss=mform 22-07-2008T10:21:28+01:00
Vodafone fell 12.93 per cent as it announced a gloomy outlook, while Enterprise Inns fell 12.87 per cent on similar warnings.

Carphone Warehouse fell 6.02 per cent, builders merchant Wolseley fell 5.99 per cent and Thomson Reuters dropped 5.85 per cent.

Meanwhile, commodities and energy held on to gains.

Cairn Energy was up 6.85 per cent, John Wood Group rose 4.73 per cent and platinum producer Johnson Matthey climbed 4.44 per cent on a 22 per cent rise in pretax profits.

Lonmin and BP rose 3.04 per cent and 3.02 per cent respectively.

Last night in New York, the Dow Jones closed down 0.25 per cent and the Nasdaq fell 0.14 per cent.

Sterling this morning rose slightly against the dollar and the euro making £1 worth $2.00365 and €1.25860.



mform]]> http://www.mform.co.uk/news/article.php?key=17682 Finance Business http://www.mform.co.uk/news/article.php?key=17680&rss=mform 22-07-2008T08:54:44+01:00
Sainsbury is cutting its fuel prices by 5p a litre for those spending over £50, while Asda and Morrisons are cutting their petrol prices by 3p and 4p respectively.

The move is in response to oil prices falling from a $147 a barrel peak to $130.

Asda trading director, David Miles said: "We are seeing a more stable reduction in oil prices allowing us to pass on the savings to customers.

"We urge other retailers to follow our lead at a time when customers need as much help as possible."

At Asda the price of petrol and diesel will fall by 113.9p and 128.9p at all its forecourts.

Last week's AA Fuel Price report showed petrol prices rose 1.5p from mid-June to mid-July, compared with 7p rises in the previous month.

It found average petrol prices were at 119.5p a litre and diesel prices were at 133.1p.



mform]]> http://www.mform.co.uk/news/article.php?key=17680 Finance Transport Business Oil http://www.mform.co.uk/news/article.php?key=17678&rss=mform 22-07-2008T08:25:55+01:00
But reducing carbon emissions is now top of the agenda for business leaders, the report found.

Twice as many firms say reducing carbon emissions has risen up their agenda in the last six months than those who say it has fallen down (20 per cent compared to nine per cent).

Energy efficiency is now ranked ahead of recruitment freezes, redundancies, freezing salaries or giving below-inflation pay rises as a potential cost-saving measure, the report added.

Hugh Jones, solutions director at the Carbon Trust, said: "Our research shows that energy efficiency measures, not job cuts or salary freezes, are the cost-cutting steps businesses are considering first during this economically challenging time.

"We're talking about money that could be saved by making quick and easy changes such as encouraging staff to turn off computers and lights, turning down the heating, or maintaining equipment properly."

The Carbon Trust found UK businesses could collectively save nearly £2.5 billion during the next 12 months, equivalent to the combined annual salaries of more than 100,000 employees on an average wage.

Neil Bentley, director of business environment at the CBI said, "We welcome these findings from the Carbon Trust, which support the CBI's conclusions that, despite a choppy economic outlook, climate change remains a priority for business."

The Carbon Trust, a government-funded group which helps firms to reduce their carbon emissions, is recommending companies to take simple steps such as switching off lights and computers at night.

mform]]> http://www.mform.co.uk/news/article.php?key=17678 Finance http://www.mform.co.uk/news/article.php?key=17676&rss=mform 21-07-2008T17:57:02+01:00  
The index closed Monday up 27.90 points to 5,404.30.
 
Commodities saw greatest boost, with Ferrexpo rising 7.59 per cent, Lonmin up 5.02 per cent, Kazakhmys up 4.59 per cent and platinum produce Johnson Matthey climbing 4.38 per cent.
 
Land Securities rose 5.82 per cent.
 
After the poor showing on its rights issue, HBOS fell 6.21 per cent.
 
WPP Group was down 4.13 per cent and Intercontinental Hotels fell 3.16 per cent, while Aviva dropped 3.15 per cent and Schroders fell 3.06 per cent.
 
Anthony Grech, market strategist at IG Index, said: “Although today has been a little muted, the fact that the market has once again pushed higher will be seen by some as further confirmation that the near-5,000 level hit last week marked an interim low for the UK and a shift in sentiment.
 
“Corporate and economic news was a bit thin on the ground on Monday with the main focus on HBOS, when it was revealed that only around eight per cent of shareholders chose to take part in its rights issue.”
 
He added there could some more rocky trading sessions ahead for the bank, until underwriters have dealt with the stock they were left holding.
 
“In terms of the FTSE, the 5500 mark could prove to be the next big target, ending up as something of a crunch level. The test will be, if we get there, whether the market can push higher or if it turns out to be the end of this bear market rally,” he concluded.



mform]]> http://www.mform.co.uk/news/article.php?key=17676 Finance Business http://www.mform.co.uk/news/article.php?key=17674&rss=mform 21-07-2008T16:58:02+01:00
The insurer wants clear accountability and more money spent on drainage problems that cause flooding, on top of the £5 million the government has already announced.

David Williams, claims managing director, said: "More than 75 per cent of our flood claims in 2007 resulted from drainage issues.

"The cost of last year's floods to the UK insurance industry as a whole was around £3.4 billion, which reflects not only a huge financial burden that needs to be spread across insurance premiums, but also the tremendous suffering to policyholders that flooding causes.

"Prevention measures and increased investment could substantially reduce insurance claims and disruption to people's lives."

The insurance industry and the government reached an agreement earlier this month, after insurers threatened to withdraw flood protection unless action was taken to improve defences.

Although the government has pledged £800 million in 2010-2011 to prevent flooding, this is only for coastal and river defences and does not include tackling surface drainage, AXA said.

For this issue, the government has earmarked £5 million – but this only covers the cost of developing the plans, not for the action required, the insurer said.

Part of the problem is that it is not clear where the responsibility for improving surface drainage lies. AXA is advocating that local authorities should be made accountable for the infrastructure improvements required to prevent a repeat of last year's catastrophe.

Mr Williams added: "It is essential that the issues of who is responsible for the ownership and maintenance of sustainable drainage systems are identified and relevant funding put in place to ensure increased protection for the future."

mform]]> http://www.mform.co.uk/news/article.php?key=17674 Finance