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Banks forecast continued decline in lending

January 25, 2009
decline in lending

decline in lending

[originally posted Monday 12th January, 2009]

Each quarter the Confederation of British Industry (CBI) and PriceWaterhouseCoopers produce an annual survey of the financial services sector. The December 2008 survey, just out, starts:

The 77th CBI/PricewaterhouseCoopers financial services survey sees the industry adjusting to a rapidly worsening economic and operating environment. Levels of demand are falling fast and the outlook for revenues is unquestionably negative. The industry is entering a new phase of decisive cost cutting as it attempts to take control of its response to the downturn.

What does this mean you and me?

Basically, the organisations that were selling lots of mortgages and associated insurance products a year ago are simply not selling them any more, as a result of which they’re not making any money are focusing on cost-cuts instead.

If you need a mortgage (e.g. your current fixed rate or tracker is coming to an end) it pays to get professional advice from an Independent Financial Adviser (IFA) who is a specialist in the field. Don’t just go to the high street or assume that your existing lender is going to reward your loyalty by offering you the best deal!

Advice Forum gives you a platform for a no-commitment dialogue with an IFA who can advise you on the best mortgage deals for you and your specific circumstances.

Read the CBI/PWC financial services survey (PDF).

Posted in financial advice, mortgage, property | Tagged , | Leave a Comment »

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Got more than £50k in PPP

January 25, 2009

[originally posted Friday 9th January 2009]

In today’s brave new world of low interest rates and declining returns, it’s more important than ever to make sure your pension and savings arrangements are optimised.

If you have more than £50,000 invested in a Personal Pension Plan (PPP), it’s probably more important than ever to make sure you’re not being over-charged.

A pension review now could help save you money, with a direct impact on your standard of living in retirement, or the age at which you can retire.

Posted in pensions | Leave a Comment »

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Bank of England base rate cut to 1.5%

January 25, 2009

[originally posted Thursday 8th Jan 2009]

lowest for 300 years!

Bank of England base rate is now the lowest since its foundation in 1694, that’s the lowest in over 300 years!

Should we be jumping for joy or wallowing in despair? The slightly disappointing answer is neither really.

If you’re a saver, you’ll be hit by dwindling returns. What’s the point in saving with derisory interest rates? There are still some good deals out there, but you’re going to need to move quickly. Is it time to stock up on “cheap” equities?

If you’re a borrower it’s generally good news, but banks are under no obligation to offer you cheaper credit. And credit, as we know, is harder to come by.

If you’re buying a house, should you act fast or wait to see whether property prices fall further?

What about investors? Have stockmarkets reached their nadir? Should you be moving your money around? What’s the wisest way to invest a lump sum right now? Should you be drip-feeding monies into asset-backed investments?

If you’re in work, will you have to work for longer (or even ’til you die)? Conversely, if you’re over 50, would it be better to access some monies early?

Retirees, annuity rates are likely to fall, what should you do? Can you afford to wait? If you’re in poor health, or a smoker, it’s more important than ever to consider your options fully.

The reality is, of course, most of us fit into more that one category, so the right move for your specific set of circumstances may not be straightforward. But the good news is that there are opportunities out there, if you’re clear about your goals.

Now is the time to contact your financial adviser for a comprehensive financial review.

Posted in financial advice | Tagged , , , , , | 1 Comment »

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Halifax House Price Index -16.2% fall YOY

January 25, 2009

[originally posted Friday 2nd Jan, 2009]

© woodleywonderworks, flickr

© woodleywonderworks, flickr

Halifax, the UK’s largest mortgage lender, published its December 2008 House Price Index today.

Here’s the scoop, and it’s not pretty:

1) Seasonally adjusted UK House prices fell 2.2% in December alone
2) Over 2008, the decline was 16.2%

So the average home is worth £160k, the same as it was in August 2004.

On the upside, just, the index’s authors note that the market does show signs of stabilisation (see last week’s post).

For most people, their home and/or other properties represent a very large chunk of their assets. If this is true for you, shouldn’t you be thinking very hard about a financial review?

Posted in property | Tagged | Leave a Comment »

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Property Prices in 2009

January 25, 2009

Interesting article from the Royal Institute of Chartered Surveyors today.

In a nutshell, they predict that the decline in residential house prices has some way to go, and a further fall of 10-15% is likely.

At the same time, an RICS survey suggests that the volume of transactions may have bottomed out already, and we should see the volume of transactions start to increase.

Obviously, against the backdrop of the current UK economy, such assements should be considered riskier than would have been the case just 12 months ago.

Read original article here.

Posted in property | Tagged | Leave a Comment »

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