Short-term lending and the Ramadan effect | London Business School | 25.07.18
Fascinating article off the back an academic study conducted by the London Business School, whereby researchers found that the average default rate on short-term business loans granted in Turkey within Ramadan was 2.68% – 38 basis points higher than the average rate for loans granted during the rest of the year – 2.3%.
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Bank of England raises interest rates to 0.75% | Sky News| 02.08.18
The news that the Bank of England increased interest rates above 0.5% for the first time in almost a decade won’t have escaped you. The cost of borrowing rose from 0.5% to 0.75% which will have most impact on the 3.5 million people with variable or tracker mortgages. The rise, according to Money Saving Expert will benefit savers as it should increase best-buy rates up on both savings accounts and ISAs.
Credit card lending grows | Credit Strategy | 31.07.18
In June, consumer borrowing (excluding mortgages) remained stable but the annual growth rate of credit card lending exceeded that of other loans and advances at 9.5% versus 8.5%. This news came before the Bank of England was preparing to announce interest rate rises.
FCA consults on changes to peer-to-peer crowdfunding lending | Credit Strategy | 30.07.18
Customers buying a mortgage or taking out a home finance product through loan-based crowdfunding have faced a gap in protections, say the The Financial Conduct Authority. The FCA found evidence of “poor business practices in the industry”, which has led to “potential and actual harm”.
UK unemployment falls to 43-year low but pay growth slows | The Guardian |14.08.18
Unemployment is at its lowest level in 43 years but pay growth is at its weakest since September 2017. Average weekly earnings rose by 2.4% on the year – in line with inflation – down from 2.5% in the previous three-month period. In its slowest rate since January, pay growth excluding bonuses was up 2.7%. The number of people on zero hour contracts as their main job saw a decrease.