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If you have or have had children at some point in your life, then chances are you will agree with the following statement…they’re expensive!!!

According to statistics, the average cost of raising a child and providing him or her with the essentials from birth up until the age of 21, will set the parent back by a staggering £121,000. However, recent research conducted by the Halifax has discovered that the average child has also enjoyed a 500% increase in weekly pocket money over the last 2 decades.

Reportedly, today’s child can expect around £8.00 per week from their parents, which represents an increase of £6.94 over the last 20 years. However, there also appears to have been a series of peaks and troughs in parent handouts over the last 5 years, with 2005 being a high point so far for pocket money (£8.41).

It would appear that children are less inclined to settle for a bag of sweets these days, and are more inclined to purchase novelty gadgets, video games and DVD’s. Worryingly, a significant proportion of parents are over stretching themselves financially as a result of pocket money commitments, as demonstrated through a rise in the number of personal loans acquired for the sole purpose of coping with this specific strain.

Despite heavy criticism from both consumer groups and the media, a recently conducted industry survey has revealed that mortgage and loan products carrying the 100% + LTV stamp are set to soar in popularity, in the not to distant future.

It is suggested that around 80% of home loan providers in the UK are expecting the (100% LTV) market to show sizeable growth over the next 3 years partly due to high house prices and partly due to rising interest rates.

According to a separate survey, copious amounts of first time buyers are finding that traditional mortgage and loan products are beyond their financial remit, and are causing many people to go against the grain in order to attain suitable finance. A handful of specialist lenders announced that the 125% mortgage would be made available to borrowers, although they also stressed that only a select few would qualify due to the potential financial risks.

Regardless as to whether critics believe that such loan and mortgage products are within the borrowers best interests, our current economic conditions have made such financial extremities a necessary evil. Analysts have also speculated that increased popularity in niche lending may possibly cause an economic shift, which could have disastrous consequences for some homeowners.

One of the UK’s largest business loan providers has today announced that its now 1 ½ decade old ethical lending policy has been responsible for the decline of nearly ¾ of a billion pounds worth of loans.

The Co-operative bank is one of the only lending institutions in the country, which will actively refuse loans to businesses if they feel that their products and/or services may bring harm to the environment and/or society.

The Co-op first introduced its policy back in 1992, and did so under the mantra that all businesses can have an impact on the environment and it was the responsibility of each individual company to manage said impact, if its effects were likely to be detrimental. The impact that some industries can have on mother earth is usually quite obvious (pollution from power stations, fossil fuel mining companies ect), however some, such as the financial services industry are not so obvious. 

The Co-operative interpreted its responsibility to be in the funding of firms, whose business may negatively effect the environment. The bank introduced it ethical policy (to much support by its customers) stating that it would not invest into any company, which it felt would harm the environment and/or society through its activities.

The Bank is recognised as a pioneer in the fight against climate change awareness, and is applauded internationally for its efforts.

Today’s first time buyers are less inclined to leave familiar territory when hunting for their first home, preferring to stay close to mum and dad or so suggests a new study.

According to a captive study, compiled by one of the UK’s leading home insurers, around ½ of all first time buyers will move a maximum of 25 miles from their parents, with a further 20% opting to live no more than 2 miles from mum and dad.

Experts commenting on findings have suggested that today’s first time buyers appear to be unsettled by the prospect of leaving the nest completely and are choosing to live close to their folks, as more of a personal compromise than anything else. It is also suggested that FTB’s prefer to stay in close proximately of the area where they grew up, In order to keep in contact with close friends.

Loan brokers are no longer allowed to automatically bundle payment protection insurance into loan plans, specifically when the application is made online.

The UK’s financial watchdog (the FSA) has recently announced that brokers will be prevented from gearing their online marketing materials to presume that consumers will automatically require PPI. From now on, consumers will have to physically request the product before brokers can quote for it.

For those who are not familiar with the product, PPI or payment protection insurance is a specific type of cover, which protects the applicant from certain incidents that would prevent loan payments from being made. Selling this type of insurance can prove to be extremely lucrative for the broker and can also be an expensive addition to the loan, for the consumer.

Consumer groups are overjoyed with the news, stating that the ruling is a victory for loan shoppers and will further ensure that individuals are not duped into signing for products they neither want nor need.