Grant Thornton says the World Cup has led to an unprecedented rise in personal spending, with 1m being borrowed every four minutes.The accountancy firm also says there is evidence to show that many debtors live well beyond their means. It warns that financial catastrophe can be expected when a big event – in this case the World Cup – reveals consumers’ borrowing to be out of control with no savings to cushion the blow. Grant Thornton says the average person has 3,000 more in unsecured debt than they did five years ago. And the Bank of England says that at the end of last year, Britons owed over 1.148trillion on mortgages, personal loans and credits cards. This is increasing at the astonishing rate of 1m every four minutes. Mark Allen, head of the national individual voluntary arrangement department at Grant Thornton, says: “Football fans will celebrate, indulge themselves and spend, spend, spend, but credit cards will pay the penalty.” He says that brokers may often only have part of the solution, through no fault of their own. Allen adds: “Mortgage brokers are increasingly seeking our help on how to advise clients who have significant and unmanageable levels of personal debt. Thankfully, IVAs may solve this problem.” An IVA is a legally binding way to reduce the amount overindebted consumers repay, stopping further interest charges and reducing repayments.
David Walton, an external member of the Bank of England’s Monetary Policy Committee, died last Thursday aged 43, following a short illness. Walton was the only committee member to vote in favour of an interest rate rise in the last two meetings. His death caused the financial markets to back-track, sending short sterling interest rate […]
1st, a Vertex company, unveiled a range of software and e-commerce services to be launched over the next 12 months at its annual conference.The first is Adviser Evolution a smart client application, developed using Microsofts .Net technology. The system is being piloted by five intermediary firms, including Yorkshire Investment Group with a controlled launch ear […]
The Financial Services Authority last week admitted that it was possible for a broker to comply with all its rules and still not be treating customers fairly. Speaking at the Mortgage Summit in Jerez last week Michael Lord, head of mortgage and credit unions at the Financial Services Authority, told delegates: “I accept it is […]
As has often been said, the dividing line be-tween the specialist and prime markets is becoming blurred.
Many commentators have suggested the UK’s exit from the European Union will trigger a domino effect, leading to its eventual break-up. Neptune Head of European Equities Rob Burnett discusses the likelihood of this happening. Click here to read more Important informationInvestment risks Neptune funds may have a high historic volatility rating and past performance is […]
News and expert analysis straight to your inboxSign up