Month in Review: Industry News
We bring you this month's most important stories in credit and finance.
Your credit report and score is more important than you may think. Below, we walk you through the biggest stories of the last month and discuss how they will impact you and your finances.
The month started with the positive news that the number of first time mortgage deals has doubled in the last three years. It’s encouraging to see that banks and other lenders are helping Brits to get on the housing ladder. A mortgage demonstrates to lenders that you are a trustworthy candidate and, if you meet your mortgage payments on time every month it should have a positive effect on your credit score. Having a higher credit score will also increase the chances of your future credit applications being accepted.
It was reported in June that levels of UK household debt have reached a record high. However, this doesn’t need to be seen as a bad thing as long as it’s managed correctly. In addition, we welcome the news that the Centre for Social Justice (CSJ) think new, responsible ways of lending aimed at those in a disadvantaged position are needed. We would agree that everyone deserves access to fair credit. Free access to a credit score and report means that everyone can keep an eye on this important aspect of their finances.
On the same day, it was also reported that the UK is spending more than £19,000 every second using credit, debit and charge cards. By law, credit card companies only have to honour the advertised APR rates for 51% of successful applicants so be aware that you may not automatically get the best deal.
Kristin Forbes, a member of Monetary Policy Committee of the Bank of England, sent speculation into overdrive in June when discussing the date that the rate rise would happen. Apparently, the ‘date is coming closer’ but she has assured homeowners that a rise would be gradual and would not lead to a sudden hike in mortgage repayments. Whether interest rates rise in six weeks or six months, homeowners need to make sure they are getting the best possible deals now. If homeowners are not getting a great deal now, then when the rise happens, they will be paying even more than they should.
As spending is going up, it’s good to see everyone is becoming more confident about their finances. Also, there are more conversations opening up about affordable credit which shows that things are heading in the right direction for the consumers.