IFS data show squeeze on incomes for households

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IFS data show squeeze on incomes for households

IFS data show squeeze on incomes for households
The Institute for Fiscal Studies, a think-tank trusted by left and right, claims the average British household is 6% poorer than before the financial crash and is unlikely to recover lost ground before next year’s general election.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 3

Pensions & Life Assurance

John Lewis takes shine off its gold-plated pension
John Lewis has set out controversial plans to water down its £3 billion pension fund in a move that means tens of thousands of staff will lose out on their gold plated retirement benefits.
The Times, p. 40
Also appeared in : City AM London, p.4, Independent i, p.50, The Guardian, p.29

Mortgages & Residential Property

RATE HIKE FEAR DRIVES UP COST OF MORTGAGES
New data has revealed that banks are already starting to hike the rates on five-year fixed mortgages, following hints from Bank of England governor Mark Carney that rates will rise in the coming years. Figures seen by City A.M. show the five-year swap rate, used to calculate the loans, hit 1.7 per cent this month, up from below one per cent last spring according to the Legal and General Mortgage Club. The rise is a 65 per cent jump in relative rates.
City AM London, p. 1
Also appeared in : Financial Times, p.4

Inflation since 2008 crash has hit low-paid hardest
Households earning less typically spend a much higher proportion of their income on items like food and energy, where prices have risen much faster than the consumer price index since 2008. In comparison, people with higher incomes typically spend more money on mortgage interest repayments, which have been held down by ultra-low interest rates.
City AM London, p. 2

The secrets of a successful mortgage application
The Mortgage Market Review (MMR) – due to be implemented in April – is a set of rules designed by the Financial Conduct Authority to prevent excessive or risky lending and to protect the consumer. The Times gives details.
The Times Bricks and Mortar, p. 6

Retail Banking

Barclays cuts 400 corporate bank jobs
Barclays is cutting 400 jobs from its corporate banking division, adding to the similar number of people axed by its investment bank earlier this week.
The Daily Telegraph Business, p. 4
Also appeared in : City AM London, p.2, The Times, p.44, The Guardian, p.31

1.1 million choose Santander 123
Santander UK said that 1. 1 million people opened new 123 accounts in the past nine months, with 232,000 of them switching from rivals.
Independent i, p. 50

Appointments

Virgin Money hires Deutsche’s Marilyn Spearing as non-exec
Virgin Money appointed payments veteran Marilyn Spearing to its board yesterday.
City AM London, p. 10

SANTANDER’S retail division bounced back […]
Last year Santander’s retail division bounced back with a 27 per cent surge in earnings, thanks largely to the government’s Help to Buy scheme. The group saw profits in its retail bank jump to £1.6billion, with gross mortgage lending rising 28 per cent to £18.4billion.
Metro London, p. 57

Round Up

Santander’s UK switch to small loans takes off
Santander has reported that its British profits grew over 2013 as a whole, as it continued its move out of mortgages and into small business lending. The wider Santander Group saw its profits jump 90 per cent as the Eurozone crisis receded.
City AM London, p. 10

Santander profits from decline in soured loans
The Spanish lender Banco Santander reported on Thursday that its profit more than doubled to 1.06 billion euros in the fourth quarter as it continued to benefit from declining charges for bad loans. But the earnings still came in below analysts’ expectations.
International New York Times, p. 16
Also appeared in : Financial Times Companies and Markets, p.18, The Daily Telegraph Business, p.4, The Guardian, p.31, The Times, p.43, The Times, p.40

Stress-­test demands flag need for bank hiring spree
European banks will be forced to embark on a fresh round of hiring as they cope with the demands of regular stress-testing by their regulators, according to a leading accounting firm.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 18

Church hires experts over Wonga stake
The Church of England has called in a new ethical investment specialist as it struggles to sell off its indirect stake in the pay-day lender Wonga.
The Times, p. 13

The above articles appeared on 31.01.2014. Reproduced with the kind permission of Kantar Media UK. All rights reserved.

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