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Banks to Face the Possibility of Fines Over Sales Incentive Schemes

Due to the recent problems with the mis-selling of payment protection insurance, which ended with a £9 billion compensation bill, the Financial Service authority (FSA) has been looking in to how bonuses and incentivisation programmes affect how sales staff works and the kind of products they are recommending.

A British Bankers Association (BBA) spokesman said “bank staff are employed on a salaried basis and performance is measured on a wide range of criteria, including appropriateness of products sold and levels of customer satisfaction”. Read more

Marks and Spencer to Launch Bank

Marks and Spencer (M&S) launched their money service in 1985 and since 2000 they have offered home, travel and pet insurance. In 2003 they then launched a credit card and loyalty scheme.

Therefore with over 25 years financial services experience it is no wonder that they have recently confirmed that they are to launch their own bank with 50 branches planned for the next 2 years; the first bank will open its doors to customers in July 2012. Read more

Could There be a Mortgage Boom for Those With Smaller Deposits

Mortgages for those with smaller deposits seem to be increasing in availability at the moment, thus bringing the hope of climbing on to the property ladder a little bit closer for some.

Banks are luring potential buyers with small deposits as a flurry of new deals hit the market. Read more

£140 million to Boost Lending

The authorities are worried that the economy will take a nasty turn for the worse, especially if the euro zone crisis deepens any further. In particular, they fear that lending and borrowing will dry up, thus pushing the economy deeper in to recession.

It seems therefore that urgent action is now required to help stimulate the British economy, especially now it has entered a ‘double dip’ recession. Read more

Mortgage Lending May 2012

The euro zone crisis and the end of the stamp duty holiday drove a sharp fall in mortgage lending in April 2012. The fall was an expected consequence of buyers rushing through their purchases before the exemption ended at the end of March.

The Council of Mortgage Lenders (CML) reported a 19% fall in gross mortgage lending to £10.2 billion from £12.6 billion in March 2012, although this is 2% higher when compared with lending in April 2011. Read more

House Sales Down in May 2012

The ongoing economic uncertainty in the UK and destabilising effect of the euro zone crisis has continued to dampen confidence in the market.

The results in most parts of the country are consistent with prices edging downwards in May 2012. However, the capital once again outperformed the rest of the country reporting increases rather decreasing prices. Read more

Under New European Rules Standard Variable Rates May be Linked to the Base Rate

It seems that millions of borrowers have been left bemused by several lenders decisions to hike their standard variable rates (SVR) despite the historically low base rate.

John Heron, chairman of the Intermediary Mortgage Lenders Association (IMLA), believes that the base rate is now irrelevant to rates and these raises are down to underlying funding costs. Read more

House Prices Help Drive Household Wealth

Recent research has shown that current average house price is approximately 105 times higher than it was when the queen was coronated in 1952, meaning that climbing on to the property ladder in that year required just £1,520.

In the silver jubilee in 1977, the average price was only £9,737 and today’s average house price is 16 times higher at approximately £160,000. Read more

Gap Widens in the Housing Market

Historically, people have always had to pay more for a house in the south ofEngland. The north/south divide in the nation’s financial fortunes and job prospects is also fuelling growing gap in house prices.

UK house prices were marginally up in October 2011, but as of late this has slowed down and the gap continues to widen between the north and south. Read more

Could There be a Ban on Savings Linked Mortgages?

It seems that in the current climate life is tough for the average first time buyer and only those with squeaky clean credit histories and savings to put down a deposit can hope to get on to the property ladder.

The struggles facing first time buyers mean that many have turned to their parents for help raising deposits or for help to even qualify for a mortgage in the first place. Read more

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