DESPITE the Bank of England cutting the base rate to 5.25 per cent on Thursday, it's no time for complacency among mortgage borrowers.
The credit crunch is still with us and household bills continue to rise.
And very worrying figures on repossessions were published yesterday by the Council of Mortgage Lenders (CML). The number of people whose homes were repossessed by lenders
jumped by more than 20 per cent in 2007 to an eight-year high of 27,100.
If anyone needed a stark reminder of the consequences of not being able to meet mortgage repayments, then those figures should do.
You may also have watched the alarming Repossession, Repossession, Repossession documentary this week on TV. It featured homeowners who had run up debts that they were now finding it impossible to deal with. And after years of easy credit, people are now finding they can no longer take out yet another loan when they start to struggle to meet their out- goings.
But it's no time for scaremongering either, as the CML's repossession figures are well down on the high of 75,540 reached during the house-price crash in 1991.
People should try as hard as they can to live within their means, especially since no-one really knows what way the economy will go this year.
And it's a good idea to have mortgage payment protection insurance in place.
IDON'T like to deliver all doom and gloom on a Saturday, so now some welcome news. The current account war has stepped up a gear with the news that Alliance & Leicester is increasing the interest it pays new customers to 8.5 per cent.
The group's Premier Direct and Premier 50 current accounts will pay returns of 8.5 per cent on credit balances during the first year, after which the interest rate falls to 1 per cent below the Bank of England base rate.
People switching to the account will also get an interest-free and fee-free overdraft for the first year.
According to Moneyfacts, the independent provider of financial information, this puts Alliance & Leicester at the top of the league table.
Samantha Owens, head of personal finance at Moneyfacts.co.uk, said: "With all major banks and building societies offering switching services, there has never been a better time to switch accounts.
"Previous bad press has seen the institutions stepping up their game and most now have dedicated teams that make switching accounts as smooth as possible.
"Some of the biggest banks get away with paying poor rates on their accounts because they assume customers can't be bothered to switch. Making a small amount of effort today could help you earn more in the long run."
IT'S NOW officially the Chinese Year of the Rat. Could this affect your car insurance?
According to online car insurance specialist elephant.co.uk, your Chinese astrological sign could influence your abilities as a driver.
The company looked at data from more than two million policyholders and found that some astrological signs were more likely to hold a motoring conviction or have an accident than others.
Rabbits and tigers were among the safest drivers. But watch out for sheep or red-light jumping monkeys.
Rats are also pretty safe, as well as hard-working and sociable.
