northern_david, Author at Northern Community Bank

Saving & borrowing levels in the UK

August 8, 2018 9:03 am Leave a Comment

The Office for National Statistics recently looked into saving and borrowing levels in the UK. According the Office for National Statistics

UK households have seen their outgoings surpass their income for the first time in nearly 30 years

At Northern Community Bank we encourage people in Burnley and Pendle to save by providing a safe, free and convenient place to build up saving pots. We know that it is difficult when bills are rising, wages are stagnant, people are on zero hour contracts or unexpected expenses arise. However our account holders tell us by putting a little away, as often as possible, it really does add up to help when life throws up an expense you just didn’t pencil in.

The latest saving and borrowing levels statistics available showed that UK household spent more than they received annually. The last time that this happened was in 1988, however the amount households are overspending far exceed that of 1988; not even before the financial crash of 2008 has the UK hit these levels.

On average, each UK household spent or invested around £900 more than they received in income in 2017; amounting to almost £25 billion. Households’ outgoings last outstripped their income for a whole year in 1988, although the shortfall was much smaller at just £0.3 billion.

The Office for National Statistics pointed out that

To fund this shortfall, households either have to borrow – at which point they could be living beyond their means – or dip into their savings.

As the Money Charity has regularly pointed out over the last few years, saving levels are at their lowest since the 1960’s. This must means a large percentage of UK households are borrowing to cover the short fall.

We know that many turn to high interest lenders for unsecured loans or credit, such as pay day loans, pay weekly stores, doorstep lenders or guarantor loans which can end up costing the borrower eye watering amounts.

Northern Community Bank provide affordable loans for a variety of reasons, with decisions made on affordability. Our staff work tirelessly to assess whether a loan is affordable for a person and tailor a repayment plan that works for the borrower, which includes a small amount to be set aside to build up savings.

This save-as-you-borrow method is unique to Community banks and research has shown that 71% of borrowers at a Community bank go on to be regular savers.

It is good to talk

If you would like to discuss your saving or borrowing needs then contact Northern Community Bank today. We have 5000 adult account holders, with collective savings of £5.9 million and throughout the last 36 years we have enabled the community to access over £47 million in affordable loans.

Pay Weekly Carpets v Freedom to Shop Around

August 1, 2018 11:46 am Leave a Comment

When budgets are tight and your home needs a new carpet, sometimes people feel they are faced with a choice between the pay weekly carpets companies or sticking with a threadbare carpet that clearly needs replacing.

At Northern Community Bank we have helped people in the Burnley and Pendle communities to purchase new carpets, laminate, vinyl and lino for many years. When deciding how to finance a new carpet, the pay weekly companies that populate social media platforms such as Facebook appear to be a good option. No credit check or interest, it sounds too good to be true….?

When neighbours from our community apply for a home improvement loan at Northern Community Bank to finance new carpets we are often told it has given them the freedom to shop around and find the best deal. The different styles, quality of carpet and ability to do a deal with local suppliers has always been a bonus with the money to pay upfront.

A man and a young toddler girl playing with toys

Many of the pay weekly carpet companies proudly trumpet that it only cost £10 per week. There is normal a deposit of around £40-50, plus a fitters charge of £50-£70. In some cases we have spoken to account holders who have decided that putting aside the £100 deposit and fitter fee, whilst saving £10 per week at Community bank, took no time at all to purchase a brilliant quality carpet from a local supplier.

There are times when you need a new carpet immediately. Many find when moving into social housing that the properties come unfurnished or when a baby arrives in a family and starts to crawl. Northern Community Bank have always been on hand to help, and encourage people to get in contact with a friendly member of staff. As a not-for-profit company you will not be charged a fee to discuss your options, nor an application fee or deposit before you decide what to do. Community banks only operate to benefit the local community.

Some people will be happy with the pay weekly carpet companies, but just like the rent-to-own companies such as BrightHouse you should always sit back, read the terms and conditions, and consider your options before committing.

Is the carpet good quality, is the sample the carpet I will actually get, what would it cost for a similar carpet from a local supplier?

Be aware that you may not own the carpet until the balance is paid, which means late or non-payment could incur interest adding to the final balance or the flooring being removed from your property.

Are pay weekly carpets right for me?

Everyone wants to feel proud of their household, we know that carpets can set the tone for your house; new flooring can really change the mood of the people who live in a home. If you are in situation where the flooring needs replacing and your options to finance are limited then contact Northern Community Bank today.

It is easy to apply for a loan, once you’ve provided us with the information we need we’ll try to make a decision as quickly as possible. We aim to deal with all applications within two days and, wherever possible, by the very next day. As soon as we’ve decided, the money will be transferred into your account, which puts you in the promising position of being able to start shopping for carpets straight away.

Northern Community Bank invited to reception at Palace of Westminster

June 13, 2018 10:06 am Leave a Comment

Northern Community Bank attended a reception held within the Palace of Westminster where members of the All Party Parliamentary Group (APPG) on Community banks and representatives from the Lloyds Banking Group outlined their commitment to supporting the Credit Union movement.

The reception was hosted by Chair of the APPG on Credit Unions Jeremy Quin MP, Chair of the Credit Union Foundation Lord Roy Kennedy, and also heard speeches from the Economic Secretary to the Treasury John Glen MP, Minister for the Department for Work & Pensions Guy Opperman MP and Managing Director of Lloyds Bank and Bank of Scotland at Lloyds Banking Group Robin Bulloch.

Northern Community Bank were successful in a recent application to the Lloyds Banking Group Community banks Development Fund for £50,000, which has been used to open a branch within SPE Furnishings and employ a member of staff, whilst giving us the confidence to purchase and renovate new premises on St James’s Street in Burnley. The event was held a stone’s throw from both the sitting Houses of Commons and Lords, within the Strangers’ Room. Which saw representatives from Community banks who submitted successful grant applications, receive praise for both their grant proposals and positive effect on local communities.

Lloyds Banking Group’s funding forms part of their ‘Helping Britain Prosper Plan’, originally set up to provide £1 million each year to Community banks for four years. Following on from the success of the first four years, amazingly Lloyds has agreed to contribute another £1 million of additional funding in 2018 in partnership with The Credit Union Foundation.

John Glen MP assured the gathering that the Credit Union sector in the UK had the full support of all parties in Westminster and spoke about the funding from Lloyds Banking Group

I am committed to promoting the benefits of Credit Unions, there are over 400 of them across the country, serving 1.9 million members, and each plays a vital role for the people and community they serve. This funding from Lloyds is fantastic news for the sector and I hope that other banks follow by example.

The Lloyds Banking Group Community bank Development Fund has so far helped 66 Community banks lend over £20 million to its account holders, with this number set to exceed £25 million by the end of 2018. Robin Bulloch, Managing Director, Lloyds Bank & Bank of Scotland explained that consultation with Credit Unions across the country had identified the best way to support the sector was by providing funding to help us grow and strengthen the services we provide to local communities

As part of our ambition to be the leading supporter of the UK’s Community banks, we are contributing an additional £1 million to provide sustainable lending to even more Community banks, and in turn, their members. Over 66 Community banks have benefited from the funds support to date, helping over 400,000 members across the UK, underscoring our commitment to Help Britain Prosper.

Northern Community Bank’s Marketing and Development Officer, David, attended the reception on behalf of Northern Community Bank and was encouraged with the detail of the speeches

“It is great to hear that Credit Unions will continue to get the full support of MP’s, we need help with regulation that allows Credit Unions to continue to grow and serve our community. Coupling this with continued support promised by the Lloyds Banking Group we will continue to offer a service much needed in Burnley and Pendle. It was great to speak to Nick Williams, Lloyds Banking Group’s Northern Ambassador, regarding the different ways many Credit Unions are being supported in the North by the fund. Northern Community Bank are grateful for the £50,000 grant we received from the Lloyds Banking Group Credit Union Development Fund and are certain that it will enable us to increase the numbers of both savers and borrowers from our community.”

Northern Community Bank created 36 years ago today

April 23, 2018 1:16 pm Leave a Comment

Northern Community Bank is 36 years old today. We started as Nelson Community bank on St George’s Day at St George’s social centre on Vaughan Street.

On April 23rd 1982, a Saver Group was launched with just 15 account holders and the first collection produced a total of £75 in share savings. We registered as Nelson Community Community Bank (NCCB) on August 31st in 1982.

The past year has sadly seen two of those founders members pass away, which has meant we have looked back with greater focus of the foundation those 15 founder members laid down to allow Northern Community Bank to grow into the multi branch organisation serving many more people in the Burnley and Pendle over the past 36 years.

As NCCU grew from its Vaughan Street base year on year it was agreed the services should be available to the whole of Pendle, and in October 2005 NCCU merged with Colne & District Community Bank to form Pendle Community Community Bank. On the 1st October 2013 Pendle Community Community Bank merged with Burnley Area Community Credit Union to create Northern Community Bank.

Now with well over 5,000 adult members who have collective savings of over £6.4 million, and since its creation we have lent out over £47 million to local people!

northern community bank board of directors and staff at the 23rd AGM

Northern Community Bank has seen many progressive developments since it was created. Originally operated by dedicated volunteers we have progressed to having 15 paid members of staff who are still assisted by volunteers. This enables Northern Community Bank to provide our savings and loan accounts to more people in the community from our three branches.

We have also made it easier to deposit at Northern Community Bank accepting standing orders, a range of benefit payments, cheques and cash. We increased the number of savings accounts after members expressed feedback relating to saving for Christmas, holidays and the need for budgeting for bills.

Developments on the loan application process has made it far easier and convenient for account holders to apply for loans; account holders can apply on the secure online accounts area, via telephone or in person at any of our branches.

As a financial co-operative that operates solely for the benefit of the local community we are always looking for ways to improve. If you have any suggestions please get in touch.

Northern Community Bank is 36 Today

As always Northern Community Bank will also strive to push forward and this year will be no different. Thank you for your continued support, Northern Community Bank would not have developed without you – the account holders who own the Community Bank.

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