Credit, Collections & Insolvency News
Since the onset of the cost-of-living crisis, 6% of people have started borrowing for the first time, and 8% are borrowing more according to research by Hargreaves Lansdown. The research found that some groups are more likely to have stepped up their borrowing – including younger people, women, renters, and parents. Meanwhile, other groups have…
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New research by Equifax has found that over 367,000 fixed-rate mortgages are due to come to the end of their five-year deals over the next year. More than 70% of open mortgages are currently on a fixed-rate deal . The analysis also found that the majority of which have an average outstanding balance of £170,000. This…
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New figures from the Building Societies Association (BSA) has found that mortgage lending by building societies was down nearly a quarter in the first three months of 2023 compared to the same period in 2022, reflecting falling demand in the housing market. The figures showed that gross lending in Quarter 1 (Q1) 2023 was £13.9…
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Research by consumer lender Fluro found that there has been a 22% uplift in consumers making loan requests during April 2023, compared to the same period last year. As the cost of living squeezes personal finances, growing numbers of consumers are looking to consolidate their debts or shift spending behaviours. Compared to the same period…
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The UK economy has performed better than expected so far this year, and should avoid recession, leading the EY ITEM Club to upgrade its 2023 UK bank lending forecast for households and businesses. Total loans to households and businesses are expected to rise 1.2% this year (a net increase of £29 billion), improving on February’s forecast which…
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The Competition and Markets Authority (CMA) is to investigate whether a ‘failure in competition’ means consumers are being overcharged for groceries and fuel. The CMA says that while the evidence shows that the majority of fuel price increases are due to global factors, such as the Russian invasion of Ukraine, indications are that higher pump…
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The Bank of England has raised its key interest rate by a quarter of a percentage point to 4.5%, marking its 12th consecutive rate rise. The BoE revised up its growth forecasts from gloomy numbers released in February, but it also now expects inflation to be slower to fall than it had hoped, mostly due…
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New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business fell by 4% in March 2023 compared with the same month in 2022. In Q1 2023, new business was 2% lower than in Q1 2022. The retail store and online credit sector reported new business up by 5% in…
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Eight in ten tenants feel ‘trapped’ in the rental cycle – as ONS figures show house prices for first time buyers have risen by an average of 18 per cent in the last two years, an increase of £39,680. A study of 2,000 adults who live in a rental property found 86 per cent dream…
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PwC has joined the Bank of England and Office for Budget Responsibility in forecasting that Britain will avoid a recession this year. PwC estimates that the UK economy will grow by 0.1% this year before returning to 1% growth by the end of 2024 and 1.6% by end of 2025. It believes GDP will rise…
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New analysis of UK credit card activity from FICO has revealed worrying payment patterns amongst customers who have held their cards for between one and five years, known as the established vintage. This group is showing increased rates of missed payments and other signs of financial stress. The research found that established vintage of credit…
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New research from TransUnion has found that nearly four in 10 (38%) adults are using buy now, pay later i(BNPL) when shopping online, which is consistent with the previous year. More than half (53%) of those that used buy now, pay later in the past 12 months spent a total of between £100 and £499…
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The Financial Conduct Authority and the Payment Systems Regulator have launched a fresh push to encourage more competition in banking services via third-party firms. As co-chairs of the Joint Regulatory Oversight Committee, the regulators issued a joint statement saying: “While significant progress has been made, there is more to be done to deliver the full…
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