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Archive for September, 2006

New buy to let range from Leeds

Thursday, September 28th, 2006

Leeds Building Society has launched a five year fixed rate buy to let mortgage range, with fee free options for remortgagers. The five year fixed rate is at 5.24 per cent, with the fee-free version at 5.84 per cent. Both deals are available up to 80 per cent loan to value and allow the repayment of 10 per cent of the outstanding balance each year without penalty. There are no higher lending charges. The fee-free deal includes a free valuation up to £335. Early repayment charges are staggered as follows: 5 per cent of the amount redeemed in years 1-2, 4 per cent in year 3, 3 per cent in year 4, and 2 per cent in year 5.

The building society has also launched a five year fixed rate mortgage at 4.99 per cent, which also allows 10 per cent capital repayments each year without penalty. There is also a fee free five year fixed rate at 5.49 per cent.

Posted in Consumer Credit, Homeowner Loans, interest rates, mortgages, UK Finance | No Comments »

The Beginning of the End for The Bank of England

Wednesday, September 27th, 2006

Ten years ago the Bank of England turned its head as Barings, the City of London’s oldest merchant bank collapsed.   This ended the security and trust Britain’s banks had in their regulator. The myth was shattered.  The Bank of England was ‘not’ in the business of  protecting them from the real world.

The following years have shocked the industry: TSB, Bank of Scotland, NatWest and Abbey have all lost their independence.  In 1992  Midland, once the world’s largest bank, merged with what is now called HSBC, formerly the Hong Kong and Shanghai Banking Corporation.   The Bank of England never stepped in.

The financial market opened to new companies over the years, allowing more venues for lenders and debtors to find assistance and products.  The market has become so loose that the Bank of England is faced with an entirely new financial community  .

It is now forced to deal with complaints of fraud, scam artists posing as loan officers, and an internet banking community that does not differentiate between firms that deal with UK lenders, and those that deal with off shore lenders. This has caused the financial community to scramble

The industry is rallying to bring stability to their products and services, and protect debtors from being victimized by off shore lenders and unethical sale’s practices.  The biggest worry for the UK financial community is that foreign companies will come in and by defaulting UK banks. This fear could be realized if the insolvency rate in the UK grows unchecked.

Posted in Bad Credit, Banking, Consumer Credit, UK Finance | No Comments »

DTI Attacks Con Men

Wednesday, September 27th, 2006

The Department of Trade and Industry has made plans to allow customers the opportunity to cancel a purchase within seven days.  The plan will also require  firms to be more ethical and truthful  about the full cost of a purchase and the customer’s ability to cancel unwanted goods.  The DTI hopes this measure will make life uncomfortable for doorstep financial sales representatives and debt repair con men.

Fiona Bartosch, spokesman for the DTI, said: ‘We don’t want to hinder reputable firms from practicing, it is the con men that this is aimed at. It is often elderly people that become victims. We have examples where salesmen have preyed upon old peoples’ fears to sell elaborate security systems that they often don’t want or need, or have refused to leave until a contract has been signed.’

If you buy something from a door-to-door retailer under the current law there is a seven day cool off period, unless, the sales person made an appointment.  This has driven doorstep loan sales representatives to call first and make an appointment.  This removes the ‘cold-call’  tag, and the consumer’s right to cancel the purchase within seven days.

Gordon Lishman, director general of the charity Age Concern, said: ‘We have long-campaigned for a cooling-off period to be introduced for all sales completed in the home. We often hear very distressing stories about older people being bullied into buying expensive products in their own home that they do not need or cannot afford. This new legislation should stamp out bully-boy doorstep selling and give older people greater protection.’

The DTI hopes the plan will receive enough support to  make it a criminal offence for sale’s representatives to use underhand sales techniques.

Posted in Bad Credit, Consumer Credit, Homeowner Loans, UK Finance | No Comments »

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