The new initiative, approved by the Conservative Party who are keen to initiate the plan immediately, will encourage the exchange of mortgage based assets for government bonds, thereby driving the mortgage market and secured loan markets forward again by increasing liquidity.

Despite some objections, notably from Liberal Democrats who fear that the government initiative could incur greater financial liability for the taxpayer, the Conservative Party shadow chancellor indicated that it was imperative to unlock the financial system in order to relieve the difficulties being faced presently by consumers involved in the mortgage and secured loan sector.

As a result of the pandemic credit crunch, passed on initially from the United States mortgage markets last year, the UK market has experienced significant difficulties, including a sharp tightening of lending criteria, a vastly reduced number of mortgage products available, and not least an increase in the overall cost of borrowing despite the Bank of England announcing three successive cuts in the base rate since last December.

It is hoped that the implementation of the new measures will help to diffuse the growing criticism by some financial authorities, including the Treasury, over the amount of time the Bank of England has taken to seriously address the growing issue.

The government initiative comes on the back of a recent report stating that already home and mortgage markets have slumped in the region of 50% within a year. According to published figures, properties sold through estate agents have dropped by 50% in comparison to the previous March, and the number of consumers successfully securing a mortgage has consequently reduced by around 46%.

The Report from the National Association of Estate Agents, comments that its members were responsible for selling 14 properties on average in March 2007: In the same month of 2008, the average sale per member was down to just seven. Unsurprisingly, comparisons are now being made with the period during the late 1980s when the property market was its lowest ebb in recent history.

As it currently stands, the amount of actual mortgage lending has now declined to the lowest monthly figure since 1997.

According to the British Bankers’ Association (BBA), the figures are the worst since the organisation began compiling approval data, with just 35,417 new approved mortgages in March this year, down 18% on the previous month.

For many of the hardest hit consumers in the present climate, the options are no longer between taking out a new mortgage, applying for an unsecured loan or remortgaging, but have come down to a choice of filing for bankruptcy, taking up a Debt Management Plan (DMP), or an Individual Voluntary Arrangement (IVA), with the Citizens Advice Bureaux and government and corporate debt management agencies being swamped for advice by financially harassed members of the public.

However, the independent financial site Debtwatchdog has pointed out that it is not always easy for these people to get the correct advice, with many financial institutions, together with bank and credit card companies, reluctant to encourage consumers from taking up an IVA, or, in Scotland, a Protected Trust Deed (PTD), and thereby indirectly reintroducing the stigma once attached to insolvency.

The uSwitch financial comparison website appears to put some of the blame for the current financial situation on the financial institutions themselves, claiming that 70% of unsecured loans were issued last year without any proof of income.

Drivers should take advantage of all discounts that many providers offer, that can significantly reduce the cost of car insurance. Understanding discounts and how they can affect auto insurance premiums can help smart shoppers make better decisions about their coverage and possibly save themselves some money in the process.

Read below to identify possible discounts that could help you save on auto insurance this year. Other than discounts, there may be some other ways for you to save on your insurance premiums. We will go over several discounts that can help with your current situation.

First, there are discounts for Auto Safety features. Certain states will give you discounts for anti-lock breaks. Make sure you know if it is two or four wheel anti-lock break vehicle. Automatic seatbelts and airbags are frequently discounted on your insurance premiums. In most states, a defensive driver class discount may apply. If the principal driver usually 55 years old or older has completed an approved defensive driving class a discount could apply. Keep in mind that most states will only approve this class if it is voluntary meaning that it was not the result of a violation or infraction.

Some insurers will give you a discount for having multiple vehicles. In some cases, this will only apply if you have two or more drivers. If you have a clean driving record, meaning you do not have any tickets, accidents or suspensions in the last three years (some companies require five years) then you could be eligible for a safe driver’s discount.

Many companies will reward you with staying with the same insurance company for many years without any accidents reported. They will offer you a renewal discount. It makes sense, you have carried insurance with a company for several years, and have not had an accident, your insurance company likes you and wants to reward and keep your business. Some companies honor you with a discount if you had prior limits on your previous policy. They discount you because they understand you are a better risk.

Conversely, if you do decided to change insurers a proof of prior insurance discount may apply. Most insurers request at least 6 months of consecutive insurance from the previous insurer. If you are a full-time student who meets certain grade requirements and are unmarried and usually under 25 years of age (some states the age is 21) you could be eligible for a good student discount. If you own a home, including condominium, town home, or mobile home, which is used as a principal residence, a discount could apply. Military personnel either currently active or retired from any branch of the US military a discount could apply. If your vehicle is equipped with an anti-theft device, a discount could apply.

You could lower the cost of your insurance in other ways.
For people who own older cars, it may not be necessary or cost-effective to protect them with collision and comprehensive coverage. By comparing the book value of your vehicle and the premium that the insurer has offered, you may find that it cost as much for the insurance as it does for the vehicle. If the car is worth less than $2,000, you will probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you.

In addition, keep in mind that the type of vehicle you buy could greatly affect your premium. A flashy red sports car is usually going to cost more to insure than a mid sized sedan. This is also true of vehicles that are on the list of most stolen. There are many ways that policyholders can save on their insurance. Knowing more about auto policies and premiums can help consumers take advantage of less obvious discounts while ensuring that they have the appropriate protection for their vehicles. The last way to save is to assume more risk. If you chose higher deductible on your Personal Injury Protection or Comprehensive and collision coverage will lower your premium as well. The deductible is the amount of money you have to pay before your insurance company begins paying the rest.

Understanding how discounts affect your insurance rates is important to save you money.

The real estate market is currently more favourable to Landlord or those buying property for renting purposes than those who buy it for occupation or residential purposes. Nowhere is this benefit most seen than in the Capital city, where the rental yields is our time more than is seen to be coming from properties located in the south-east of England and this evidence comes from a the survey conducted on landlords in both areas.

According to Alliance & Leicester Mortgages, Scotland and the North of England will experience rapid expansion in the coming year. The survey conducted on landlords reveals that Scotland is expected to show a five per cent increase in rental yields while the North of England, four per cent in the year 2008.

On these overall optimistic trends, Jeremy Claridge, head of specialist mortgages at Alliance and Leicester, states that such trends are reflected in the optimism that buy-to-let landlords have for the coming year 2008. This comes at a time when the current financial year has been a bit tough on people.

According to the Rics, its quarterly survey revealed that there is more demand for family houses and the excess supply of flats in the market. The demand for family houses has increased by 25.2 percent and the demand for flats has decreased from 36.9 percent to 16.9 percent in the last quarter.

The survey though, has given a warning of uncertain economy to landlords. It states that the tightening lending criteria and successive rises in interest rates had begun to hit the buy-to-let market.

According to Jeremy Leaf, a spokesman for Rics, the rise in home rent coupled will make it difficult for would-be-buyers to raise the capital for that first important purchase. Landlords can for now, take solace from uncertainty in the economy and enjoy the gains from rising rents.

The Standard Life bank reduced its Freestyle Standard Variable Rate (SVR) by 0.25 percent to 7.21 percent from January 1st 2008. HSBC has decided to reduce its tracker mortgage rate from December 24th 2007 by 0.25 per cent from 7 per cent to 6.75 per cent and has brought out that its variable mortgage rate as being at least 0.24 per cent lower than many other high street lenders. 

Moneyfacts.co.uk, UK’s financial comparison website released a report stating that about 31 providers have declared changes in the SVRs, out of which six providers have reduced their SVRs by less than 0.25 percent. 

Lisa Taylor, the analyst of Moneyfacts.co.uk stated that the last time they saw interest rates decline was only in August 2005, when 46 lenders made an announcement the rate of change will be relatively slow.

The Financial Services Authority (FSA) has made a ruling that customers who paid an exit fees that was higher than the amount specified in the original terms and conditions of their mortgage contract can reclaim their exit fees. According to research from mform.co.uk, in spite of efforts by the Financial Services Authority (FSA) this august, to make mortgage exit fees terms more transparent, those with a mortgage still have to pay £150 when they leave one lender for another.

This research takes into account  the fact that the Royal Bank of Scotland Group companies, Standard Life Bank, Cheltenham & Gloucester and Lloyds TSB have no exit fees, but it’s  findings also indicate that others put out such fees on their customers who sometime have to pay as high as over £100 as exit fees. 

It is therefore imperative for people who regularly remortgage, to check their mortgage exit fees, so that it does not come as a nasty surprise to them. Lenders do not charge such fees as part of their administrative costs, but as part of their mortgage deal. This fee must be taken into account along application fees and other costs to determine the overall cost of the mortgage.

As with most people world over, similarly millions of Britons leave their Christmas shopping, to a week prior to Christmas. This is the main reason of the waste in credit and cash.

Moreover, leave it to another 800,000 to wait till Christmas Eve to do their shopping. The Egg study and research reveals to us, that due to this last minute frantic buying, on an average each later shopper overspends around 39% which is equal to £150.

As Chief Marketing Officer at Egg, Alison Wright, rightly puts that we all have ample time to shop for Christmas during the year. We have as much as 12 months notice, but as always, we all end up waiting till the last minute. This last minute shopping is when panic is at its peak, when we’re out to get the best and the cost nor choice doesn’t matter. If consumers plan in advance they won’t have to over spend at Christmas.

What’s more the Egg research reveals that contrary to popular belief, women too leave their Christmas shopping for the last minute, it’s not just the men folk. Surprised, huh?

In a stark comparison to last month, the first week of December has already seen a 7% increase in regular ATM withdrawals, reports LINK, network operator for cash machines.

LINK futher says, that the last four years, this figure was around 5% or so.

Statistics that were revealed last month from APACS, payments association, stated that during the festive season, a 5% fall in cash spending would be seen. Thus there would be a drop to 18.9 billion pounds from the 19.9 billion in 2006.

An increase in card usage would see a 4% rise compared to last year and thus a total of 53 billion pounds would be spend on festive purchases.

However, it is observed that consumers have restricted the use of credit card, preferring to use cash for their purchases. This is mainly due to the ongoing credit crunch. The overall retail statistics in spending has led us to this conclusion.

MasterCard, a credit card firm, stated that annual retail sales growth rate was reduced to 4% from 4.5%. This was attributed to poor sales in stores in November.

The Post Office explained that not many people were aware that for each credit transaction that is made overseas, many card providers levy an additional 2.75% in commission.

Come New Year and the 2.4 odd million Britons that are planning to travel overseas this Christmas, will become aware of this charge. Not a happy note to bring in the New Year eh?

Gary Fitton, Director of the Post Office says, “People who travel overseas, relax and enjoy, not having to worry about cooking the Christmas dinner. Unfortunately, their fond holiday memories will be taken away, when they see these hidden charges on their credit card statement”

He further adds, that they’ve urged people travelling overseas this Christmas, to bring home only their luggage. They can definitely do without this unnecessary burden of card charges.

Festive holidaymakers, prefer to travel to the top three destinations – namely Spain, USA and France, thus making making up 17%, 8% and 6% of the total respectively.

As per the Post Office, around 49% of people traveling overseas, intend on using their credit cards on their holidays.

Further research by the show reveals that about a tenth of people will take till coming September 2008 to complete paying off their credit card debts, and 3.9 per cent pay off their current year’s Christmas debt close to next year’s Christmas time or December 2008. Your Money Matters Show’s research backs up the story done by MoneyExpert.com which brought out that 4.4 million Brits are still paying off credit card bills from previous year’s Christmas expenditures. 

Why is this phenomenon happening? According to Cesarina Holm-Kander, a speaker at the Your Money Matters Show, very few people sae money for Christmas expense and they are already loaded with credit card debt when the festive season begins.