Peter Payack Finance

New figures have shown that the number of new cars sold in 2008 fell by 11.3% compared with 2007 – a sign of shifting consumer attitudes as the economy continues to struggle and consumers look to avoid getting into debt.

The report from the Society of Motor Manufacturers and Traders (SMMT) also showed that car sales fell for eight consecutive months up to December, with December’s new car sales 21.2% lower compared with the same month in 2007, and November’s total standing at 36.8% lower than the same month in 2007.

New car sales are widely considered by economists to be a good indicator of consumer confidence, a driving force behind the economy.

A debt expert for Think Money said: “A fall in new car sales is to be expected in these difficult times. Consumers may be either relying more on second-hand purchases, or avoiding purchases altogether.

“New car purchases may also be more likely to rely on credit – which has become harder to come by for many drivers – and some may simply be avoiding getting into debt to fund their purchases.”

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Think Money offer a range of debt solutions, including debt management, debt consolidation loans and IVAs (Individual Voluntary Arrangements). If you are worried about your debt, contact one of our expert debt advisers today.

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The Bank of England today cut the base rate by half a percent to 1.5% – the lowest rate since the Bank was established in 1694 – leading existing and would-be homeowners to hope for further reductions in mortgage rates.

Homeowners on some tracker mortgages will automatically benefit from the 0.5% cut, while people looking to take out a mortgage in the near future will hope that lenders also cut rates on fixed-rate mortgages.

However, a number of tracker mortgages carry ‘collars’ which prevent their interest rates falling below a certain level, meaning that some people on tracker mortgages will not receive the full cut.

A mortgage expert for Think Money commented: “Any base rate cut is welcomed by the mortgage market in general. Not everybody will benefit, but many will enjoy lower mortgage payments, and it also improves the long-term chances of fixed-rate mortgages becoming cheaper.”

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Think Money work with a panel of lenders to offer a range of mortgages. If you are thinking about getting a mortgage, contact one of our expert mortgage advisers today.

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Mathhew Hutton considers a question which has arisen a number of times recently, and which could be quite a common issue.

As I have been lecturing over recent months, I have come across significant numbers of professional advisers ‘confessing’…

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New research has suggested that the average household could have £130 knocked off their annual bills this year, if energy companies reduce their prices as expected.

Moneysupermarket.com, which carried out the research for The Telegraph, said that some of the cheaper tariffs could fall below the £1,000 mark if energy providers cut their prices by 10%. Scottish Power this week announced it would cut the price of one of its fixed-rate tariffs by this amount, and other companies are expected to follow.

The news will be welcomed by billpayers, many of whom have been pushed towards debt following large price increases in 2008.

A debt expert for Think Money said: “Billpayers faced gas price rises of nearly 50% in 2008, so any price cuts will be a help. But since the price rises were so much bigger than the expected cuts, many people may still struggle with their bills. Anyone who finds themselves in that situation should seek expert debt advice as soon as possible.”

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Think Money offer a range of debt solutions, including debt management, debt consolidation loans and IVAs (Individual Voluntary Arrangements). If you are worried about your debt, contact one of our expert debt advisers today.

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UK consumers are reluctant to take out income protection policies, potentially putting themselves at risk of financial problems – such as high level debt – if they lose their jobs.

This is according to Zurich, which suggests that people need help from advisers concerning the issue.

Research conducted by the organisation found that four out of ten Britons believe income protection policies are too expensive.

It addition, far less than half (33 per cent) were prepared to reduce their monthly outgoings in order to fund some form of mortgage or family protection.

“As household budgets become more stretched, protection may seem less of a priority for some. Yet in the current climate, it`s more important than ever that people seek financial advice to help ensure they have appropriate cover in place,” stated Peter Hamilton, Zurich UK Life`s protection development director.

Recently, Zurich published research which suggested that 70 per cent of single consumers have never sought advice from an independent financial adviser.

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The Government has announced that it will provide more help to homeowners who are struggling to make their mortgage payments after becoming unemployed.

As The Guardian reports, ‘Thousands more households will qualify for state help with [mortgage] interest payments after the threshold for qualification was raised and the waiting period slashed by two thirds to 13 weeks’.

Effective immediately, income support for mortgage interest (ISMI) will now be available to people with mortgages of up to £200,000 – rather than £100,000, as had been the case.

According to Work and Pensions Secretary James Purnell: “We have changed the rules to make sure even more people can get help with their mortgage payments if they lose their job.”

“…we will do everything we can to give people the real help they need. That is why we will give financial help towards mortgage payments for someone while they are looking for a job.”

“Keeping up with mortgage payments can be a major concern in today’s economic climate,” said a mortgage expert for Think Money. “The Council of Mortgage Lenders predicts we’ll see around 75,000 repossessions this year – and around half a million mortgages over three months in arrears.”

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Think Money work with a panel of lenders to offer a range of mortgages. If you are considering taking out a mortgage, or just looking for mortgage advice, contact one of our expert mortgage advisers today.

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The Bank of England’s Monetary Policy Committee has announced a further cut to the base rate, taking it to 1.5% – the lowest rate since the Bank was founded in 1694.

Prior to the cut, the question had been not ‘will they cut it?’ but rather ‘by how much?’. Predictions varied from 0.25% to 1%, with most analysts seeing a cut of 0.5% or 0.75% as the most likely outcome.

What really matters to borrowers, of course, is how much of the base rate cut is passed on, in the form of cheaper loans and mortgages.

“There’s no guarantee that lenders will pass on the full base rate cut,” said a loans expert for Think Money. “This isn’t just because the base rate isn’t the only factor determining the cost of their funding: it’s also because they’re heavily dependent on savers’ deposits, which means they can’t afford to cut the interest rates they offer on their savings accounts.

“That said, anyone with a tracker mortgage that doesn’t have a collar (a pre-defined minimum interest rate) is guaranteed to see their monthly payments come down by the full amount – and a couple of mortgage providers have already pledged to pass on today’s cut in full to customers with a standard variable rate (SVR) home loan. But the majority of lenders are more likely to reduce the rate on their SVR mortgages by around half the base rate cut we’ve just seen.”

Looking ahead, it’s possible the base rate will fall all the way to zero this year, even though this would bring its own negative consequences – one of which would be the knowledge that it can’t fall any further.

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The CEO has a nagging doubt the real actions in the office

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The Government is considering ways of encouraging banks to increase the availability of loans.

Loans play an essential part in today’s world. As the BBC puts it: ‘The ability of businesses and homebuyers to obtain credit is seen as key to economic recovery’.

Indicating that injecting more cash into the banking system was not the “first port of call”, Chancellor Alistair Darling revealed that discussions would be held about different ways of making loans more available.

Analysts are currently speculating about the different approaches the Government could take to revitalise the loans markets. As The Telegraph reports, the Treasury could fully nationalise certain banks, for example, or even offer loans ‘directly to businesses and households through its nationalised institutions’.

This Thursday, the Bank of England’s Monetary Policy Committee (MPC) is widely expected to announce a cut of at least 0.5% to the base rate. According to Reuters, ‘Money markets are pricing in an 80 percent chance the Monetary Policy Committee will slice borrowing costs to 1.25 percent from the current 2 percent, taking the Bank rate to its lowest since it was founded in 1694’.

Whatever the MPC’s decision, there’s no way of knowing what impact this will have on loan markets.

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Think Money work with a panel of lenders to offer a range of loans. If you are thinking about getting a loan, or looking for advice, contact one of our expert loan advisers today.

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Debt advice services have helped hundreds of thousands of people cope with their debt problems in 2008.

As nds.coi.gov.uk reports, Government-funded face-to-face debt advice services alone have helped over 100,000 people, while the national telephone debt advice line has ‘seen a significant increase in demand’ for debt advice.

As Consumer Affairs Minister Gareth Thomas said, “It is imperative that when people are struggling with debt, they seek assistance as soon as possible. There are a wide range of organisations who provide expert advice and can really make a difference when it comes to resolving debt problems. We have made a firm commitment to support these services so they can continue to help those most in need.”

“Debt advice can make a huge difference to someone struggling with their debts,” said a debt expert for Think Money. “Depending on their situation, they may have a range of options that could help them regain control of their finances. As Mr Thomas has stated, the important thing is to seek debt advice as soon as possible.”

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Think Money offer a range of debt solutions, including debt management, debt consolidation loans and IVAs (Individual Voluntary Arrangements). If you are worried about your debt, contact one of our expert debt advisers today.

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