The UK government faces growing pressure to toughen the rules on lenders charging a majority of customers higher interest rates than originally advertised. As outlined by the FCA, banks and other regulated lenders must offer rates as advertised, to at least 51% of their borrowers. This measure is intended to prevent people from accepting ‘attractive’…
British expats living in the EU have faced a block on borrowing from some British lenders following the UK’s exit from the European Union. Lenders including Newbury and Marsden Building Societies have adopted the policy however have signalled that the restrictions may only be temporary measures, depending on ongoing negotiations between the UK and EU. …
A leading analyst has warned that negative interest rates could cost Britain’s ‘big five’ banks £1 billion a year in lost profits. A cut in interest rates to -0.15% would knock up to 11% off the leading banks annual profits, even if they implement offsetting measures like those used within a eurozone. The warning comes…
Spanish banks are preparing for a rebound in defaulted payments. The European Central Bank (ECB) has calculated its estimates following stress tests at the start of the month, revealing that various state-backed guarantee programs launched to boost credit during the coronavirus pandemic are likely to have a negative impact of around 21 billion euros. The…
The Financial Conduct Authority (FCA) have issued a stark warning to high-cost lenders in regards to their re-lending practices. They have raised ‘significant concerns’ over the marketing practices used by high-cost lenders which they believe drive vulnerable borrowers into further debt. The warning comes after a review of 250,000 customers of the short-term, high-cost credit…
Forecasts have suggested that consumer borrowing from UK banks is set to plummet at the fastest rate on record this year, thanks to the recession caused by the coronavirus pandemic. The pandemic has seen a major change in how banks operate and their lending patterns. Whilst lending to businesses continues to increase thanks to lockdown…
Major UK banks have revealed the true extent of the coronavirus pandemic on the banking industry as they issue their reports. Leading banks such as NatWest, Barclays and HSBC have all reported loss in income and the need to set aside major figures. NatWest Group have announced they have set aside another £2.1billion in order…
Looking again at the market sectors in and around the UK in light of Covid 19, this week we look at the commercial markets. Pretty much everything about the current economic contraction is unprecedented — but one very familiar phenomenon could be emerging that will extend and deepen the crisis. The health of the commercial…