Research carried out by the Abbey National has shown that around 20 percent of UK consumers have all their finances dealt with by just one provider. They feel it is simpler this way.
On top of these people who have already gone to one supplier there is another 18 percent who are seriously thinking about it. Between these two groups that is almost 40 percent of people looking to make their finances easier to manage. Does this say something about the population as a whole or the finance companies themselves wonder Abbey National?
On average we have 3 different finance organisations we deal with, as well as three passwords and three PIN numbers. No wonder people want to simplify things. The Abbey National do not advocate using just one password or PIN number though since this has a detrimental effect in security.
The first six months of the year has seen Northern Rock record a loss of GBP585 million, primarily through their customers being unable to meet the payments on their mortgage.
The figures provided by Northern Rock show 1.18 percent of customers are regularly missing mortgage payments, which is an increase of 300 percent compared with 12 months ago. The upshot of missed payments is arrears, with the number of people now in this state also up by around 300 percent.
The worry for everyone looking at the housing situation, not just Northern Rock, is that these arrears can turn into repossessions, especially where negative equity becomes a problem, such a situation will be affecting many homeowners who bought their house within the last two years.
The 8.5 percent interest rate offer on the Alliance and Leicester Premier 50 and Premier Direct current accounts is being extended for a further 3 months such has been its popularity.
The high interest rate is guaranteed for the first year of having the account, which also provides a 0 percent overdraft option, again for twelve months. An Alliance and Leicester spokesperson suggested that people could earn a significant amount of extra interest by swapping to these current accounts as well as saving on overdraft charges.
As a nation we tend to stick with the same accounts, with 80 percent of current account holders having been with the same one for five years or more so perhaps this Alliance and Leicester offer can change that, for the benefit of the customer.
