| MORTGAGE DEMAND MAY BE SLOWING - BBA
Total sterling lending to the UK private sector showed a net underlying increase of 9.5bn (+0.7%) to 1,297bn. This compares with an underlying rise of 20.7bn in January and an average of 12.6bn over the previous six months. Net mortgage lending rose by an underlying 5.2bn. This was lower than both the increase of 5.4bn last month and the monthly average of 5.7bn over the previous six months. Unsecured personal lending fell by 0.2bn in February, compared with a fall of 0.3bn in January. Loans & overdrafts accounted for all of the fall, with credit card borrowing unchanged. There was a strong lending increase to real estate companies (+1.9bn) and lending to construction rose by 0.3bn, although there were decreases in lending to cold water supply companies (-0.3bn), wholesale & retail trade (-0.3bn) and agriculture & fishing (-0.2bn).
6 Million Brits Consolidating Their Loans
The preferred method of debt consolidation in the UK is where unsecured personal loans are combined into one loan with a lower monthly payment. While this is a positive move in the short term, it can be fiscally devastating over the long-term if done in the wrong way. Unsecured personal loans are the preferred method of consolidating loans. The interest rate is normally lower than interest being charged on credit cards and store cards. Research from uSwitch.com revealed that a number of Brits who consolidate their loans continue to use their credit cards and store cards to create further debt. The number of UK consumers who apply for personal loans that are higher than the amount they need to consolidate their loans are using the extra money, not for wealth generating, but to maintain a higher lifestyle.
Mortgage lending holds up, but lenders more cautious
LONDON (SHARECAST) - February saw a record level of mortgage lending but signs are growing the UK housing market could be slowing, two of the UK's lending bodies said today. Building societies lent a record 4.21bn in February, up from 3.18bn this time last year. Approvals also rose from 3.65bn to 4.92bn, according to the the Building Societies Association. Yet again, building societies saw record lending in February, with gross lending the highest ever for that month, director general Adrian Coles said. The BSA cautioned, though, that the full impact of interest rates coming through could slow the market down later in the year. Figures from British Bankers' Association suggest that might be happening already. Its members lent 5.2bn last month, down from a 5.4bn increase in January and also below the six-month average of monthly lending of 5.7bn.
The risk of co-signing your child's loan
Co-signing a loan for your child is one way to help him or her establish credit, but it also can expose you to having to repay the loan, and possibly late charges, legal fees and penalties, if he or she defaults. Let members of the Financial Planning Association of Greater Indiana help you sort out the details in today's focus on personal finance. .
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