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Monday, 03 August 2009 20:52 |
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Aviva, formally known as the Norwich Union have announced that they are giving £10,000 free life cover to new parents. Research has shown that 56% of parents would leave dependent children with no financial protection in the event of their death. At present the protection gap in the UK is £2.3 trillion and this figure has not changed in five years. Aviva are hoping to remind new parents that life insurance is essential to protect children in the event of their death. |
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Alistair Darling has met with the bosses of the retail banks and have urged them to lend more to small and medium sized businesses. According to the British Bankers Association lending to small companies rose to £391 million in June, compared with £133 million in May. Alistair Darling also criticised the banks for increasing the cost of borrowing as interest rates were at record lows of 0.5%. The BBA have said that lending to small businesses is essential to bring the UK economy out of recession. |
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Gross mortgage lending seen a dramatic increase in June rising to £12.3 billion. This was a 17% increase from the £10.5 billion borrowed in May. However it was significant fall from June 2008 which seen £23.8 billion lent to home movers. Although these figures may represent a recovery in the housing market it is worth noting that the increase may due to the seasonal summer house move. The Council of Mortgage Lenders still expect lending to be approximately £145 billion for 2009. |
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The Council of Mortgage Lenders have suggested that approximately 80% of under 30's are receiving financial help from parents when purchasing their first home. Research has shown that they are finding it extremely difficult to save deposits. The CML also suggested that lending criteria loosened in May. The average first time buyer deposit has remained at 25% since February and the average income multiple is 2.97. This compares to home movers who borrow an average of 67% of the property's value and borrowed an income multiple of 2.68. Further easing is expected over the summer as higher loan to value products have come onto the market. |
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Consumers have been warned that insurance costs could rise by around 20% over the next year partly due to the increase in insurance fraud. In 2008 430,000 claims were made for whiplash. For every £100 taken in insurance premiums insurers will pay £105 in claims. In the past insurers invested the money onto the stock market and made their profits that way. With the current market volatility this is becoming more difficult therefore insurance premiums are increasing. |
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