Half of people are borrowing to cover the cost of nasty surprises

New research by. by Opinium for Hargreaves Lansdown has found that half of people are borrowing to cover the cost of nasty surprises – including two thirds of young people, parents, and high earners The research found that people are much less likely to have avoided expenses out of the blue (46%) than we were…

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Decade-low mortgage growth forecast into 2024

7th November 2023 Consumer Lending | #mortgage lending

Mortgage lending is expected to record decade-low growth in 2023 and 2024, according to the latest EY ITEM Club Outlook for Financial Services, as mortgage rates reach their highest since 2008, economic growth remains subdued and weakening housing market sentiment drives down demand. Overall, mortgage loans in 2023 are expected to rise just 1.5% (net) and 2% (net)…

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Consumers spending £494 per month more on housing, food and energy bills

1st November 2023 Consumer Lending | #consumer spending

Latest cost of living research from Royal London has revealed how consumers have raided their savings to cover the rising cost of living. The cost of housing, food and energy bills have risen by an average of £494 a month by September this year when compared with August 2022. In the fourth wave of its…

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Higher interest rates a positive and a negative for consumers

19th October 2023 Consumer Lending | #interest rates

The EY ITEM Club forecast presents a mixed picture for consumer spending, which is expected to benefit from several supports. Although pay growth is expected to ease, inflation should decline more quickly. Falling energy bills, easing food price inflation and weaker pipeline price pressures mean inflation is predicted to average 7.4% this year (down from…

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Credit card spending debt increased by 8.7% in July

18th October 2023 Consumer Lending | #credit card debt

Latest figures UK Finance showed that there was an 8.7 per cent increase in outstanding balances on credit card accounts over the twelve months to July and 49.9 per cent of outstanding balances incurred interest compared to 51.5 per cent twelve months ago. There were 374.5 million credit card transactions in July, 8.5 per cent…

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Personal loan customers count the cost of a poor credit score

TotallyMoney has calculated the cost of a poor credit score for customers looking to lock in a personal loan. The research found that for the most commonly provided loan of £3,000, somebody with a poor credit score could pay an extra £2,668 in interest charges over 36 months, when compared to somebody with an ‘excellent’…

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UK consumers least likely to worry about cost of living impact on credit rating

4th October 2023 Consumer Lending | #credit reference

UK consumers are the least likely in Europe to worry about how the cost of living has impacted their credit rating, despite being among the most impacted by it. The research from CRIF, Europe’s leading provider of digital transformation solutions for the financial services industry, finds that only one in five (20%) British consumers are…

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Poor credit scores cost up to £272,000 more over a lifetime

3rd October 2023 Consumer Lending | #credit reference

A poor credit score could cost £272,302 in additional interest over a course of a lifetime (ages 20 – 68) compared to a good credit score. The in-depth study by free smart money platform, Credit Karma, found that someone in their 20s, who has a poor credit score, will pay hundreds of thousands of pounds more…

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Quarter of young homeowners opt for 35-year mortgages

A quarter of young homeowners, aged 29 and under, have opted for repayment terms of at least 35 years to make their monthly mortgage payments more affordable, according to Experian. This is up from one in 10 in 2020, an increase of 150%.   The increased cost of borrowing means that many people will be nearing retirement…

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Gen X and Millennials outspend Gen Z on BNPL

2nd October 2023 Alternative Consumer Lending | #BNPL

Millennials and Gen X said they spent more than Gen Z when it comes to using Buy Now, Pay Later (BNPL) for online shopping over the past 12 months according to the latest Q3 2023 Consumer Pulse survey from a global information and insights company TransUnion. Compared to 54% of Millennials and 39% of Gen…

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Consumer credit borrowing increased by £1.3bn in August

2nd October 2023 Consumer Lending | #consumer credit

Latest Bank of England (BoE) data has shown that borrowing of consumer credit by individuals amounted to £1.6 billion in August, up from £1.3 billion in the previous month. Consumer credit growth rose to 7.6 percent in August 2023 with outstanding balances for consumer credit now standing at £217 billion. Net borrowing of mortgage debt by…

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Homeowners expect monthly payments to jump by £617 per month

20th September 2023 Consumer Lending | #mortgage rise

As interest rates continue to increase, mortgage borrowers expect their monthly payments to increase by an average of £617 according to new research by The Mortgage Lender (TML). TML’s recent research found that 80% of homeowners reported being concerned about the effect of rising rates, with 37% being extremely concerned and 43% being somewhat concerned.…

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HSBC and Nova Credit agree international credit history partnership

18th September 2023 Consumer Lending | #international credit

HSBC and Nova Credit have agreed on a new partnership which will enable newcomers to the UK to leverage their international credit history instantly and free of charge when applying for a credit card. New and existing customers applying for an HSBC UK credit card online can choose to share their credit history from a growing list…

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