The pros and cons of a secured loan
April 28, 2011
Whilst some homeowners have seen their equity levels fall over the past few years due to the drop in property prices there are still some homeowners who have a considerable level of equity in their homes, having purchased their properties at a time when they were just a fraction of the price that they are at now.
For these people there is a possibility of being able to borrow money against the equity in their homes, which they can use for one of a number of reasons and purposes. Whilst lending has become more restricted over the past couple of years due to the financial crisis there are some good deals still available for those that are looking for secured loans. There are, however, pros and cons that need to be considered when it comes to these loans, which will determine whether they are suited to your needs.
Pros
- You may find that these loans are more accessible to you because they pose less of a risk to the lender due to the secured nature of the loan
- You can get some very competitive rates of interest with the low base rate
- The borrowing power is greater than with unsecured loans based on your equity levels
- You can choose longer repayment periods than with a secured loan, so you can keep your monthly repayments down
Cons
- The loan is secured against your home, which means that failure to keep up with repayments could result in you losing your home
- If the base rate shoots up you could find the repayments on your loan rising significantly too
- There is no guarantee that you would get a secured loan in the current financial climate
- These loans are only available to homeowners that have some level of equity in your home
It is important to give very important consideration to a secured loan before making any commitment, as it is a very big commitment to make. You need to ensure that you can afford the repayments comfortably, as you will need to be able to cope with any increases in repayments should the interest rate go up. You also need to make sure that you are able to meet the repayments every month so go through your finances with a fine tooth comb before you make your application to ensure that you can afford the loan and will not be risking your home.
Seek help over your mortgage repayments
April 1, 2011
It has been revealed recently that the level of defaults on mortgages has increased again in the first quarter of this year, even though the base rate still stands at just 0.5 percent, which is the lowest level in the history of the Bank of England, which spans over three centuries. Lenders said that the default level was unexpected given the low base rate and warned that if the base rate increases - which many expect it to - there could be a further increase in the level of defaults amongst homeowners that are no longer able to keep on top of their mortgage repayments.
Many people that have variable rate mortgages have become used to having the extra disposable income that has come from the base rate being so low for the past two years, which has resulted in their monthly repayments falling. However, many have started to rely on this spare income in other areas with some even taking on further debt and using this money to make repayments on their additional debts. This is why many have now fallen into difficulties with their budgets despite the fact that they are paying less than they were two years ago.
The level of inflation has soared to more than double the government’s target of 2 percent and many now believe that a rate increase is inevitable over the next few months in order to bring inflation back down. However, this will have a severe impact on homeowners who are already struggling, as it could result in their repayments soaring by hundreds of pounds a month in some cases, which some will not be able to manage given the soaring cost of living.
It is important for those that believe that a rate rise could tip them over the financial edge to seek help as early as possible by speaking to debt experts and charities. There are a number of steps that people could look at to prepare their finances for a possible interest rate increase. This includes:
- - Consolidating their unsecured debts with one lower rate loan so that their monthly debt repayments come down, leaving them more money to cope with a rate increase
- - Switching to a fixed rate mortgage now so that they are not affected when the rates increase
- - Looking at options such as debt management plans if unsecured debts have got out of hand already
Is it wise to borrow against your equity?
March 26, 2011
Over the past decade many people have taken out secured loans, which are loans that were secured against the equity in their homes. Over the latter part of the 1990s for the next decade property prices in the UK soared, which saw the equity levels of homeowners go through the roof. For those that needed to borrow money this provided the perfect platform, as lenders were willing to offer very competitive loans that were secured against the equity. The more equity homeowners had the more they were able to borrow, and many people took full advantage of this.
However, in 2007 this all changed with the onset of the global financial crisis, which resulted in chaos in the financial and property markets and brought property prices crashing down. This sent many homeowners into negative equity and resulted in many losing their homes because they were unable to keep up with repayments on their mortgages and secured loans.
Whilst the value of property has not recovered to the point where it was before the global financial crisis there has been some level of recovery and some people may have seen some equity return to their homes. However, for those that do have equity in their homes is it advisable to think very carefully before taking the plunge and going for a secured loan.
The most important thing to remember is that if you are unable to keep up with repayments on your secured loan you could end up losing your home. The property market is still very turbulent with property prices going up and down, and this is not the most stable environment in which to borrow money that is secured against what is probably your most important and valuable asset.
You need to bear in mind that getting a secured loan is far more difficult now than it was in the past, as lenders are very cautious about offering loans that are secured against an asset in such an unstable environment. It is also important to remember that the government cutbacks and potential job losses are affecting the environment - and the ability of people to make repayments on their borrowing, which is another reason why you need to give careful consideration to taking out this type of high risk loan. You may find that the restrictions that lenders have in place are far more stringent, and whilst the base rate is at rock bottom at the moment lenders may charge higher rates due to the risk of defaults.
Beat the interest rates when it comes to loans
February 22, 2011
When it comes to taking out a loan we all want to get the best deal possible, and this is something that can save us a lot of money on our monthly repayments as well as on the overall levels of interest that we pay on our borrowing. It is important to seek out the most affordable and suitable deal when it comes to loans, and this can be done by comparing the various loans and lenders on the market to see what they offer in terms of value for money.
When it comes to getting an affordable, good value, suitable loan it is a matter of taking the time to do some research as well as getting the timing right. Over recent months some lenders have reduced the loan rates on their mid-range personal loans, making them better value for money and enabling borrowers to enjoy more competitive deals and rates.
However, this is something that will not last for long, as interest rates are certain to rocket once the base interest rate increases, which it is likely to over the coming months due to the increased pressure placed on the Monetary Policy Committee stemming from rocketing inflation. Many believe that the base rate will increase in around April or May, and this could mark the first of a series of increases for this year.
The base interest rate has been at an all time low of just 0.5 percent for nearly two years, and this is the lowest level it has ever been in the history of the Bank of England, which spans over three hundred years. However, it is unlikely that the base rate can stay at this level for much longer, and with inflation levels now soaring at twice the government’s set target of 2 percent, many believe that the base rate will increase sooner rather than later.
If you are thinking about taking out a loan this year you need to make sure that you do so before the interest rates start to increase later this year, as otherwise you could end up paying far more for your borrowing. When the base rate increases lenders will no doubt act quickly to increase their own interest rates, and this means that you will see both the repayments you have to make and the overall level of interest that you pay increase.
Do you check the small print on personal loan agreements?
January 27, 2011
Most people are well aware of the importance of comparing the various aspects of personal loans before deciding which loan to take out. It is important for those that are considering a personal loan to look at areas such as the APR, the repayment terms, and the borrowing levels. You also need to make sure that the loan is suited to your needs, so you should make sure that you choose one that you qualify for in terms of eligibility.
However, whilst many people have become far savvier when it comes to hunting out the most appropriate, suitable, and affordable loans many do not realise the importance of checking the small print on the various personal loans that they may be considering. The small print contains some of the most important information about any loan or finance agreement yet it is one of the things that a huge number of people fail to compare or even read when signing a loan agreement.
At this time of year many people may be considering taking out a personal loan, as competition between lenders has been heating up, and a number of lenders have reduced the interest rates being charged on their loans. Cheaper rates on loans won’t last long, and are likely to generate a lot of interest amongst consumers who want a good deal. Whilst the increased competition and lower rates will come as good news for those that want to take out a personal loan, it does mean that choosing between the different loans available may become more confusing.
This is where reading the small print can make a big difference to those that are confused or uncertain over which loan they should take out. The small print provides a lot of important information about matters such as early redemption fees, charges, payment breaks, exclusions and restrictions, and more. Failure to read the small print could result in you paying over the odds over the term of your borrowing, or getting a loan that is not as flexible or suitable as it may appear to be.
You can easily compare the terms and conditions of loans via the Internet, so it is just as easy to compare this important part of an agreement as it is to compare things like the APR, repayment periods etc. It is also just as important to do this, so always take the time to look at the small print before you make your decision.
Are you considering a packaged bank account?
January 25, 2011
Finding the right bank account is important for those that want to effectively run their day to day finances smoothly and efficiently. There are a number of different bank account options available to consumers these days, from the standard current account to a basic bank account or a packaged account. You should look into the details of each account and determine which is the most suitable based on your circumstances. This way you can be certain that your bank account will be well suited to your financial needs and personal situation.
One of the types of bank account that is available to consumers these days is called the packaged bank account, and it is known by this name because it comes with a package of benefits that accountholders can take advantage of. Different banks have different names for their packages bank accounts, but essentially they are the same thing with many offering benefits that are pretty standard across the board, although there may be slight variations.
Packaged accounts may be well suited to some people, but not everyone will benefit from this type of account. It really depends on whether you will use the benefits that come with the account. The reasons you need to ensure that you will use the benefits that come with these packages accounts is because you incur a monthly fee for these accounts. You therefore need to make sure that the amount that you save on the services that come with the account will outweigh the amount that you spend on the packaged account over the course of the year.
If you will use several of the benefits offered, and would have otherwise taken out the services yourself anyway on the open market, you may find that the amount you save by getting them as part of the package makes it worth going for the fee-charging packaged account. However, if you are unlikely to use the benefits that are part of the package then you will find that the packaged account could be a waste of money.
If you are considering a packaged bank account you should look into the benefits that you receive so that you can determine whether you will use them and save money before making your decision. Some of the benefits that you may get include car breakdown cover, travel insurance, mobile phone insurance, pet insurance cover, discounts at certain retailers, and a variety of other benefits.
Will mortgage interest rates increase in 2011?
January 1, 2011
For nearly two years now homeowners across the UK have enjoyed the relief that has come from the base interest rate standing at its all time low level of 0.5 percent. The base rate was reduced by the Labour party when it was still in power in the hope of boosting the economy and consumer confidence, both of which had taken a battering due to the financial crisis and the recession.
When the coalition government came into power it made a lot of sweeping changes, but one thing that it decided to leave well alone was the base rate, which the Monetary Policy Committee continuing to vote to keep it steady each month. As a result of this the base rate has been at its lowest level in over three centuries for nearly two years, and many homeowners on variable rate mortgages have been able to save money on their repayments.
However, all good things must come to an end, and the rock bottom base rate is no exception. Most homeowners have realised that they are now on borrowed time when it comes to interest rates, and many listen out for the Bank of England announcement with bated breath each month hoping that the base rate will not have been increased.
Industry official have already predicted that the base rate will increase this year, and a large number of these industry experts believe that it is most likely going to be in the earlier part of the year that the base rate will rise. Whilst the rate rise initially may not be a huge one, some do expect several increased over the next two years, which means that by the end of 2012 homeowners could be paying far more than they are now on their repayments unless they are on a fixed rate deal.
Some believe that now could be a good time to get a fixed rate deal, so that if and when the base rate does rise there will be no effect on repayments for a specified period of time. There are a number of fixed rate mortgage deals available, and if you think you would struggle to keep up with repayment increases over the next two years it may be worth seeing what is available, and whether you are able to switch to a low fixed rate mortgage before it becomes too late.
Households can make a different to their finances next year
December 16, 2010
For many households Christmas can be the worst time of year financially, with social events, presents, new outfits, and extra food and drink that all needs to be paid for. Whilst this is a very exciting time of year it can be financially draining for many households, and this is why it is advisable for families to have some sort of plan in place to sort out their finances after the expense of Christmas.
Of course, just after Christmas comes the New Year, and this is the perfect time to get your finances sorted so that you can start off on an even footing and enjoy the benefits of having a more streamlined budget throughout the year. Sitting down together just for a few hours after Christmas can help families to look at their finances with fresh eyes and reduce the amount that is being paid out for a more prosperous New Year.
Getting your finances into order as early as possible after Christmas means that you can work out a way to pay off any debt that you may have accrued over the festive season as well as enabling you to do some financial planning for the remainder of the year. This year taking these measures could be especially important this year as the Council of Mortgage Lenders has warned that repossession levels could rise next year, and failure to get finances sorted out could put people at increased risk of losing their homes through repossession.
It is a good idea for all adults in the households to sit together to go through the household finances, as everyone could have some good ideas about where cutbacks could be made. Shaving just a few pounds here and a few pounds there can amount to a significant saving each month, so look at literally everything that comes out of your account to see where you might be able to make savings.
Also, nominate one adult in the household - preferably someone that is pretty good with researching online - to look at alternative plans and providers for things such as utilities, insurance, etc, so see if there are any better deals out there. Switching services such as these could help to reduce outgoings significantly, and switching is very easy these days thanks to the Internet.
It is also worth the heads of the household looking at financial commitments to see whether there is any benefit in consolidating unsecured debts to reduce outgoings, as this can help to cut the amount paid out as well as the amount of creditors that you have to pay.
Consolidate your loans for the New Year
November 29, 2010
Like many people you may already be thinking about your New Year’s resolution for 2011, and there are many people that will be gearing up to sort out their finances in the New Year following a difficult and turbulent year. Starting the New Year afresh in terms of your finances can be very inspiring, but this involves being organised enough to get everything sorted out as soon as you can, so that by the time 2011 kicks off your finances are as organised as they can be.
One way in which you can do this is by looking at all of your debts and financial commitments to see whether you can not only reduce the amount you pay but also ease the hassle associated with repaying a range of debts. Debt consolidation is one way in which you can do this, and every year many people consolidate their debts to ease their finances and reduce their outgoings.
It is well worth starting your search for a suitable and affordable consolidation loan as soon as possible, as this will give you time before Christmas and New Year to get your loan sorted, get your existing debts paid off, and start afresh in 2011 with a new streamlined budget.
When you consolidate your debts you basically use a consolidation loan to repay your smaller existing debts, and you replace them with one larger debt. This will enable you to reduce the number of payments that you have to make each month, as you will only be making one repayment instead of several. It will also reduce the amount of money that you have to pay out each month, as you can get a low interest consolidation loan with repayments that are lower than the combined amount from your existing loans.
One of the reasons why it is advisable to look for a consolidation loan now is that loan rates have been coming down over recent months following a long period of interest rate hikes, and many experts believe that these rates will start to increase again soon. This gives you the perfect opportunity to get a lower rate loan before rates start to increase again.
You can search online for a low rate consolidation loan, and you will find plenty of choice and some good deals as long as you have a decent credit rating. Once you have consolidated your debts you can focus on repaying your one loan off rather than worrying about a variety of debts and repayments.
Use the internet to get debt advice
November 20, 2010
Many people these days have a lot of debt that they are dealing with, and in the current climate it has become increasingly difficult for those in debt to maintain repayments and make their finances stretch far enough. With high levels of debt to deal with, and the difficult financial climate making it harder to manage debt, many people have flocked to get advice from debt charities and agencies with regards to how best to ease the financial strain.
However, the number of people seeking debt advice from agencies and charities has soared over the past couple of years, and these charities simply don’t have the resources to deal with the increase in demand for their services. This has resulted in those seeking debt advice having to wait for weeks or longer to get to see someone about their financial worries rather than the few days that they may have had to wait in the past.
Having to wait all this time can be a problem for many people, as many may need advice much quicker than this because their financial situation is spiralling out of control. Rather than sitting there fretting about your debt whilst you are waiting to see a debt professional it is worth taking steps to get more information yourself.
The Internet is a great place to start when it comes to learning more about how to handle your debt problems. Of course, you may not find all of the answers online, as this is not the same as speaking to someone that has specialist knowledge and can address your specific situation. However, you should find a range of tips and a lot of advice that may be general but could still prove helpful.
By going online for debt advice you can learn more about the different options that may be open to you and whether you would qualify. You can also find out more about different debt agencies and charities, so if the waiting time with one is too long you can try others to see whether you may be able to get an appointment to see someone sooner.
You may even find the solution to your debt problems online, as you can find out more about saving money on your monthly outgoings, courses of action you may be able to take yourself such as contacting your lenders, or how better to manage your finances to make it easier to keep on top of your financial commitments.
Reducing the cost of your personal loan
October 29, 2010
If you are thinking of taking out a personal loan for whatever reason you need to first determine how much you can realistically afford to repay each month, as this will give you an idea of how much you can afford to borrow and what sort of repayment terms you should be looking for.
In the current climate most people cannot afford to pay more than they have to, and most of those that take out loans are hoping to keep the costs down as much as possible in order to ensure that they do not overstretch their budgets. In order to keep costs low when taking out a personal loan there are a number of things that you should bear in mind.
First of all don’t be tempted to take out more than you need, as all this will do is push your repayments up, and you will probably end up wasting the excess cash that you didn’t really need. Work out exactly how much you need to borrow and then stick to that amount.
Make sure that you compare a range of loan providers, as the interest rates on personal loans can vary widely from one provider to another, so you may find that there are big differences in the rate that you will be charged. Another thing you need to look at when you compare loans and providers is the repayment period that is available. The longer your repayments the less you will be paying each month, as you will be spreading the loan over a longer period - although do bear in mind that you will pay more in interest over a longer period.
Of course, it is not just new loan customers that are looking to reduce their repayments due to financial difficulties - many people that have existing loans may also be looking to reduce the amount that they pay, and there are a number of solutions for those that want to try and reduce their existing loan repayments.
One potentially effective solution is to take out a low rate consolidation loan over a longer period of time and use it to pay off your loan, plus any other loans and credit cards that you are paying. This can help you to reduce the amount you pay out each month and cut the number of debts and creditors that you are dealing with.
Another option is to contact the lender, explain your financial situation, and ask if you can extend the term of the loan to reduce the repayments or simply make lower repayments for a period of time.
Why are secured loans such a risk?
October 29, 2010
In the past taking out a secured loan was a very popular way of getting some much needed cash for some homeowners, and there were many people that had equity in their homes who decided to tap into the unlocked cash in their homes and use it for something that they wanted. With a secured loan homeowners were able to borrow potentially much more than with an unsecured loan and had far longer to repay it, making this an affordable way of borrowing.
These days unsecured loans have changed somewhat in that they are no longer as freely available to homeowners as they were, namely because of the property market and the effects of the global financial crisis. Over the past few years homeowners have seen their property values plunge compared to the level they were at when they reached their peak, and this has seriously affected homeowners’ ability to borrow in this way.
However, there are still some people that have equity in their homes and who might be tempted to take out a large loan secured against their property. This can be a very risky business, especially in the current financial and economic climate where many people are worried about their finances and whether they can keep up with debt repayments.
The threat of job losses is still a very real one for many people, especially since the government announced that hundreds of thousands of jobs would go in the public sector, which could then have a knock on effect on the private sector. Job losses could mean that the borrower may find that they cannot keep up with the repayment on the loan.
The nature of a secured loan means that if the borrower defaults on repayments for whatever reason the lender can take the money that is owed from the value of the home, and this means that taking out a secured loan can place a serious risk on your home, which you could all too easily end up losing.
It is always advisable to think very carefully before taking out a secured loan, and if you are not confident that you can keep up with repayments over the long term you should question whether this is the right solution for your financial needs, as you could lose your home as a result of failure to keep up with repayments.
Having trouble selling your home?
October 7, 2010
Many homeowners recently have experienced disappointment when it comes to selling their property. The property market has had its ups and downs over recent years, since the onset of the global financial crisis, and this has had a real impact on homeowners in many ways, from the value of their properties to their ability to sell their homes.
After the coalition government came into power in May of this year it was not long before the controversial Home Information Packs that had been launched by the former Labour government were scrapped. This led to a surge in the number of homeowners deciding to sell their homes due to the savings they would make, and estate agents reported an increase in the number of properties coming onto the books for sale.
However, many have been disappointed with the outcome, as low demand for property from buyers has left some properties stagnating on the market. For many the only option has been to take their property off the market again, but for those that cannot sell their home there may be other options available.
Some people that decide to sell up do so because they find that their property no longer matches their needs - for instance, it may be too small due to additions to the family. However, a solution to this could be to make home improvements to make the home more suitable rather than selling the home - especially if the current location of the property is well suited.
Another reason why many people decide to sell up is due to financial problems, with some thinking of downsizing in order to save money. However, if this is not an option due to low demand for property it could be an idea for homeowners to look at solutions such as renting out their property, as the demand for rental properties is high at present due to would be buyers struggling to get mortgages to buy their own places.
Those that need to save money could also look at taking in a lodger and renting out just one room in the home, which could enable them to continue living in the current home and saving money each month by bringing in additional income. Some people do consider sale and rent back schemes, but many believe that at present these offer a raw deal as homeowners can often receive far less than the property is worth.
Secured or unsecured – which is the best loan option?
September 14, 2010
When it comes to getting a loan there are a number of different options available to consumers, and the main two categories that are available are secured and unsecured loans. These loans are suited to different needs and circumstances, and it is important for consumers to ensure that they choose the right loan for their needs and their circumstances.
The two types of loans are very different in terms of the amounts available to borrow, the repayments terms, and even the rates of interest charges. The risks involved with these two types of loans are also very different. With unsecured loans there are no risks involved in terms of collateral, which is names the home of the borrower. However, this is not the case with secured loans, which are usually secured against the home.
These days those that have bought their properties over recent years cannot opt for a secured loan because they do not have the equity required in their homes. This means that their only option is to go for an unsecured loan, which does not require any collateral. On the other hand those that are homeowners with a reasonable level of equity in their homes may find that they have the option of either a secured or an unsecured loan.
In order to get a secured loan you will need to prove that you have the necessary level of equity in your home, which is the balance between the amount that you owe on the property and the amount that it is worth. Secured lending has been severely restricted since the global credit crisis, so it is worth bearing in mind that the choice of loans may not be as great as it was several years ago.
On the other hand if you are looking to get an unsecured loan you should bear in mind that you will generally need to have good credit to get this from a traditional lender. Again, the choice of loans is not as great as it was in years gone by due to the financial climate, but there are still some competitive deals available, especially on loans for £7500 or more. The cheaper unsecured loans for £5000 charge higher rates of interest so it is important to work out whether you will be better off opting for a smaller loan with a higher rate of interest or a slightly larger loan with a much lower rate of interest.
What route to take to sort out your debt problems
August 30, 2010
There is little doubt that these days many people are experiencing severe debt problems, and given the difficulties faced by consumers over the past few years with the global financial crisis and the recession taking their toll, it is not surprising that so many people now have huge debts that they are struggling to repay.
However, it is important to ensure that you look at all of the different options if you are in this situation before you plunge in headfirst to a solution that may not be best suited to you. There are many companies that prey on consumers in debt by trying to convince them that insolvency measures such as IVAs or bankruptcy is the best option, but this is not always the case.
Before looking at options that will have long term financial implications such as insolvency consumer should consider the other options available to them to assist them in sorting out their debts. Some of these are outlined below:
Going through finances
Some people think that their financial situations are worse than they actually are, and many are surprised to find that they are able to save a fair amount on their outgoings simply by making some simple cutbacks. Whilst it is nice to be able to spend whatever you want it is important to know when to cut back, and if you have debts to pay then this is the time to make these cutbacks. It is therefore advisable to go through your finances and see where you can cut back on your spending.
Speaking to your creditors
Often creditors are more understanding that they are given credit for providing they are informed of the situation in plenty of time. Therefore if you are struggling with repayments on a loan or debt it is important to speak to the creditor right away rather than hoping that the problem will resolve itself. This way there is plenty of time for the creditor to go through your situation and find a solution that will suit both of you.
Speak to a debt management professional
Another option is to speak to a debt management professional or charity, as they will often go through your finances with you to see where you can save money, and can also speak to your creditors to see whether more favourable terms can be negotiated to cut your repayments.
Questions you should ask yourself before you apply for a loan
August 27, 2010
Taking out a loan is often a big commitment for many people, and whether you are taking it out over twelve months or five years it can be a daunting thing to be stuck with a financial commitment that you could ruin your financial future if you do not stick to it.
There are many different loans available these days, and these can prove ideal for those that want to make a big purchase, pay for a one off luxury, or fund a special event amongst other things. However, before committing to a loan it is advisable to ask yourself a number of questions to determine whether you should be taking out a loan and if so what sort of loan you should go for.
How much can you afford to pay each month? You need to ensure that you go through your outgoings with a fine tooth comb so that you can see how much disposable income you have left to put towards a loan repayment each month. If you feel that spending anymore each month would be over stretching your budget then think twice before you apply for or commit to a loan, as you could run into problems with the slightest change in financial circumstances.
Is your credit good enough for a loan? Now more than ever lenders are very careful about who they lend to, and most will be keen to see that applicants have been responsible with their finances in the past. They will be able to determine this from the past credit history and current credit score of the applicant, and therefore by looking at your report before you apply you will be able to see what the lender will see when conducting a credit check.
How long do you want to pay over? When you take out a loan there will usually be a choice of repayment periods, ranging from a year to seven or even ten years - sometimes more depending on the type of loan taken. You should ask yourself what sort of period you want to pay over, but bear in mind that the shorter the repayment period the higher the monthly repayment.
How much do you need to borrow? It can be very tempting to borrow more than you actually need, but always remember that whatever you borrow you will have to repay with interest. Therefore try and stick to the amount that you need rather than going overboard and borrowing extra only to fritter it away.
Why use the internet to find a loan?
July 29, 2010
Finding a loan in the past was often a troublesome and inconvenient process, and for many people involved making numerous calls, sending in forms and documents through the post, and having to visit various offices and branches to see lenders. However, over recent years the process of both finding and applying for a loan has become far easier, faster, and more convenience, largely thanks to the internet.
Finding a loan these days is very easy, and can be done from the comfort and privacy of your own home, so in many cases you will not even have to speak to anyone or see anyone involved at the other end in order to get your finance approved.
A huge number of people now use the internet to get loans and other forms of finance, and this method of finding and applying for loans is beneficial in many ways, which is why it has become so popular. A huge number of major banks, lenders, and financial institutions now operate online, which means that those using the internet to get their finance will have enormous choice from a vast array of reputable lenders.
One of the hardest parts about finding a loan is to compare different loans, lenders, and deals, and if you are using the phone to arrange your loan this can be very time consuming. However, with the Internet you can quickly and easily view and compare a vast range of deals from a variety of lenders with the touch of a button, which provides huge convenience for those with busy lives.
Another great thing about applying for loans online is that you will not have to worry about lengthy phone calls, as you can get the information you want, correspond, and make your application via the computer without having to make any calls, send any paperwork off, or go in and see anyone.
You can boost your chances of success when you use the internet to find a loan as far as finding a great value loan is concerned, as the choice of loans is huge and it is extremely easy and quick to browse and compare loans from a range of lenders in order to find the most suitable and appropriate one. You will find that there are many different deals that are on offer online, and you can also quickly determine the suitability of each of the loans before you make your application.
Steps to take if you are struggling with your mortgage repayments
June 26, 2010
Whilst the recession may officially be over and the base interest rate may be at its lowest level in the history of the Bank of England, which spans over three centuries, many homeowners are still struggling to keep up with their mortgage repayments, which means that they are at increased risk of losing their homes.
Many people have seen their hours and income reduced, or in some cases have lost their jobs, over the course of the recession, and there are still job losses to come according to industry experts even though the recession has officially wanted. Many people are worried about keeping up with mortgage repayments, and it is important to ensure that if you are struggling with mortgage repayments you do not ignore the problem and hope that it will sort itself out, as the chances are that the problem will simply spiral out of control.
In some cases problems with making mortgage repayments can be sorted out with something as simple as going through your finances and making cutbacks. If you find that you are struggling to make ends meet financially always ensure that your mortgage is the first thing that you pay, and you can worry about the rest afterwards. The last thing you want is to lose your home, so always prioritise on your mortgage and other loans that are secured on your home.
It is a good idea to go through your finances carefully to see where you can make cutbacks, as you may be surprised at how much you can shave off your outgoings simply by shaving a fiver or tenner off here and there, and all of the money that you save can then go towards easing your mortgage repayment problems.
However, there are also people that find that they really cannot keep up with repayments on their mortgage even if they make cutbacks and this is when you need to ensure that you get advice as quickly as possible. It is advisable to contact your mortgage lender as soon as possible when you realise that you can no longer meet repayments, as the earlier you do this the more likely it is that they will be able to help you.
There are a number of options that your lender may be able to look at to help you to avoid repossession action, so immediate action is vital before you fall into arrears. If you are not confident about approaching your lender or feel that your lender is not treating your case fairly it is worth contacting the Citizen’s Advice Bureau or a debt charity for advice.
Finding a suitable personal loan
June 21, 2010
Whilst the financial markets in the UK have been very strained over the past couple of years due to the financial crisis and the recession there are various reports that claim the sector is easing up a little now, which means that the availability of loans for consumers may increase over the coming months. People may be looking for personal loans for a wide range of reasons, from consolidating other debts that they may have accrued to making a large purchase or simply paying for a well deserved holiday.
Whatever your reasons for looking for a personal loan it is important to remember that the costs can vary, and this will be based on your own personal and financial situation as well as on the lender that you go through. The interest rates charges on personal loans can vary widely, and whilst the best rates are generally only available to those with very good credit it is still important to shop around to ensure that you get the best deal possible on your loan.
In order to enjoy peace of mind when you take out a personal loan it is a good idea to ensure that the lender you go through is regulated by the Financial Services Authority, as this ensure that you have some sort of consumer protection in place rather than risking going through an unregulated lender. It is also very important to compare different personal loans and look at the different aspects of the loans to make sure that you get the one that is right for you.
A personal loan can be a fairly long term financial commitment and it is therefore important to get it right first time. One of the major things that you need to look at when you compare personal loans is the APR that the lender charges on the loans. Remember, when you see the lender advertise a ‘typical APR’ this is the amount that the majority of its customers get and not necessarily the rate that you will get, as this will depend on your circumstances.
Another thing to compare is the repayment periods available on different personal loans, as this could have an impact on the amount that you repay each month. If you want to keep your repayments as low as possible then look for a loan that offers longer repayment periods, as this will allow you to stretch your borrowing over a longer period of time thus benefit from lower monthly repayments.
Will the base interest rate be increased?
May 27, 2010
It was not so long ago that borrowers and homeowners would wait with bated breath on the day of the Monetary Policy Committee meeting each month to see whether the base rate would go up or down, and whether their repayments on their borrowing would be affected. However, for well over a year now the base rate has been at its all time low having reached a rock bottom rate of 0.5 percent in March of last year and having remained there since.
This may have resulted in some people becoming complacent, and whilst they may have been careful with their spending a year ago for fear that the base rate and their repayment might increase they may now have stopped being quite so careful with their money with the thought that the base rate will probably remain at its all time low for at least the remainder of this year.
However, homeowners and borrowers shouldn’t be too confident, as some officials believe that the only way to combat rising inflation levels would be to increase the base interest rate, which could then mean that mortgage and loan repayments increase for many borrowers. Over recent months a number of economists and officials have predicted that the base rate is likely to remain at its all time low over the course of this year, but a recent report has said that the base rate must increase.
The report came from the Organisation for Economic Co-operation and Development, which has stated that inflation has spiralled out of control over recent months and that the only way to keep a lid on inflation would be to increase the base interest rate.
The report claimed that the base rate would need to be increased at least once over the remainder of this year, and that by the end of next year the base rate would need to stand at around 3.5 percent. The level of inflation has been soaring above the target inflation rate of just 2 percent that is set by the government. It is thought that this could be a tough challenge for members of the powerful Monetary Policy Committee, as they will have to perform a real balancing act.
The OECD report stated: ‘The authorities face the challenge of preserving credibility, with headline inflation and some measures of inflation expectations exceeding the targeted rate in the context of extremely expansionary monetary and fiscal policies.’
What to look for when searching for a loan
May 14, 2010
Whilst most people can ill afford to get themselves into debt these days there are still those that will need to take out a loan for one reason or another, whether it is a personal loan to pay for one of a variety of purchases or whether it is a mortgage loan for the purchase of a home.
Getting a loan over the past couple of years has become increasingly difficult, and this is because lenders have become increasingly restrictive when it comes to lending money. However, there have been signs that things are easing in the financial markets, and this means that banks may be easing up a little on their restrictions, although things will not go back to the days of easy credit seen before the credit crisis.
Consumers that are looking for a loan should always ensure that the compare the different loans that are available, not only to get the best rate and deal possible but also to ensure that they get a loan that is suited to their needs and circumstances. There are a number of factors that you should look at when looking for a loan, and this includes:
Rate of interest on the loan: You should always compare the interest rates charged on different loans, and these can vary based on the type of loan that you choose and the lender that you go with. Remember, whilst the base rate may be at its lowest level in over three centuries banks are still doing their best to recoup losses through higher interest rates, so taking the time to compare rates could provide you with big savings.
Repayment periods available: You should make sure that you check what repayment periods are available with the loans that you are considering, as this will determine how much you will have to repay each month. Those on a tighter budget may need to opt for a longer repayment period even though this may mean paying more interest, whereas those that can clear the loan more quickly can save themselves interest by choosing a shorter repayment period.
The small print: Always check the small print with any loans that you are considering, as there could be very important details in there. This could include a variety of information from taking payment holidays if things get tight to any set up fees, penalty fees, and restrictions.
Pressure off for homeowners as repossession levels fall
May 13, 2010
The release of recent figures has indicated that the pressure for homeowners in the UK may have eased off, with data showing that the number of repossessions in the UK fell by 7.5 percent in the first quarter of the year. Over the past couple of years home repossession levels have spiralled out of control as a result of the credit crunch and the recession.
In the final quarter of last year the number of repossessions was reported to be 10,600. However, in the first three months of 2010 this number fell to 9,800. In the first quarter of 2009 the figure was much higher, coming in at 13,200 as homeowners struggled to keep up with their mortgage repayments in the difficult financial climate.
The figures have been released by the Council of Mortgage Lenders, and although the figures are encouraging and show signs of improvement officials from the CML have warned that many homeowners are still vulnerable and could fall victim to repossession. They added that arrears levels were also down, but that this should not make people complacent.
The CML added that as long as there are no more economic problems it might be looking at reducing its prediction of 53,000 repossession over the course of this year, although any revisions will not be made until the summer. It is thought that the main driver behind the lower levels of repossession is the rock bottom base rate, which still stands at 0.5 percent.
The CML stated: “We hope and expect to be able to revise down our 53,000 forecast for repossessions in 2010, but we are acutely conscious of the beneficial influence that low interest rates and the package of support have played so far.”
Saving money on extras when flying on a budget
April 17, 2010
For many holidaymakers these days the most viable option when going abroad is to opt for a low cost, no frills airline, and there are now many of these airlines in operation. These budget airlines run flights on a regular basis from a wide range of airports across the UK, and many consumers find that they offer suitable times and convenience departure points.
However, another thing that grabs the attention of the average consumer looking to book a flight from the UK is the eye-catching headline rate that these budget airlines advertise. Some even offer flights for just a few pounds each way, making the consumer think that they have got an incredible deal.
However, there is inevitable disappointment when the traveller actually tries to make the booking only to realise that there are extras, all of which cost money, and all of which substantially bump up the price of the flight. Depending on the airline that you book through the range of extras can be vast, and the price suddenly doesn’t look so appealing.
Some of the things that low cost airlines charge for include checking in, priority boarding so that you can try and get your desired seats, meals and drinks on board, administration fees, and baggage fees. The baggage fees are charged on any checked baggage that the traveller wants to take, and can cost around £30 per piece of luggage per passenger.
Whilst some of the charges that are applied such as the check in fees for airlines where online check in is mandatory there are others that can be avoided by travellers. Try and cut out unnecessary costs such as paying for priority boarding. Also, for short haul flights have a big breakfast before you travel or get something to take on board from duty free to save you paying for food and drink on the flight.
Baggage can account for a huge rise in the cost of ravelling, but the allowance for carry on baggage is relatively generous. Therefore, see whether you can get away with just taking on hold baggage rather than checked - travelling lightly can save you a fair amount of money, and it is important to remember that you can get all of things that you cannot carry in hold baggage, such as hairsprays and deodorant sprays or razors, from your destination when you arrive.
Lenders to continue being picky over who they lend to
April 13, 2010
Over the past couple of years getting finance of any sort has become increasingly difficult and this is because of the financial crisis and the recession, both of which have created havoc in the financial sector and have caused huge problems for consumers. Getting any sort of finances, such as credit cards, loans, and overdrafts, has become increasingly difficult over this period.
However, the recession is now over and the economy is slowly getting back on its feet, and this has been coupled with improvements in the financial markets with lenders being a little more relaxed about lending money, or so reports would have us believe. However, whilst some people may find it easier to get finance this will certainly not be the case for everyone.
Whilst some people may now find it a little easier to get credit lenders are using far tighter credit scoring systems than they were prior to the financial crisis, and this means that things will not be going back to the days of easy credit where even those with damaged credit ratings could find it relatively easy to get a loan or other type of finance.
The Bank of England has recently stated that whilst the availability of mortgages is set to remain steady the availability of personal credit such as loans and overdrafts will be far more restricted. The central bank believes that this will be the case for some time to come, and this means that those with a less than perfect credit rating could find it extremely difficult to get any form of personal finance.
A survey has suggested that over the coming few months unsecured credit such as loans and credit cards will only be available to what has been described as high quality borrowers, which means those with high credit scores and good credit histories.
However, on a more positive note the Bank of England has confirmed that lending to businesses does appear to have increased, including increased lending to the commercial property sector - possibly the result of the £200 billion that the government has pumped into the economy as part of the quantitative easing programme.
The Bank of England stated: “Lenders reported that the increase in credit availability had been supported by slight improvements in their funding costs and by an improved economic outlook for businesses.”
Property asking prices on the increase
March 24, 2010
The property market has been through a turbulent time for the past couple of years, and homeowners have seen tens of thousands of pounds wiped off the value of their homes in some cases. However, over recent months property prices have been gathering pace and the property market has seen a number of signs of improvement, swaying once again towards the seller rather than the buyer. Read more
Many people will be leaving Halifax
February 22, 2010
The High Street banking giant Halifax has always enjoyed a healthy database of customers, but there is evidence to suggest that a huge number of customers may be leaving the bank because of changes that they have brought in with regards to how they charge for customers’ overdrafts. Read more
What does the banks’ victory mean for you?
January 31, 2010
Last year banking customers, campaigners, and various industry groups in the UK received the news that they thought that they would not hear but had been dreading at the back of their minds. After nearly two years of legal battles and appeals it was announced that the banking industry had won the case into bank charges, which had been brought by the Office of Fair Trading. Read more
Gordon promises economic recovery in recent podcast
December 8, 2009
The shock news that was released recently with regards to the economic growth in Britain - or rather the lack thereof - caused more unrest in the UK. It had been widely predicted that the economy would show growth in the third quarter of this year, which would mean that the UK was finally out of recession, but sadly the figures showed that the economy had actually shrunk further by around 0.4 percent, leaving Britain languishing in the longest recession it has ever had to face since records began. Read more
What the experts think of the QE extension
December 4, 2009
Following the most recent Monetary Policy Committee meeting the Bank of England announced that the base interest rate was to stay at its all time low level of just 0.5 percent for the eighth month in a row, in the hope that the lower base rate would help to increase affordability and boost the economy. This came after news that the UK was still in recession, with a drop in growth for the third quarter - something that came as a shock to most industry experts. Read more
Staying focussed on your finances
October 9, 2009
With the financial climate still very turbulent in the UK it has become increasingly important for consumers to keep a tighter reign on their finances. Read more
Further controversy arises over PPI
September 28, 2009
Over recent years PPI, or Payment Protection Insurance, has been at the centre of heated controversy and regulation changes. This insurance is a form of protection that is offered to consumers taking out finance such as credit card, loans, and the like, and the idea behind the cover is that if the policyholder is unable to make repayments for a specified period of time due to sickness, redundancy, or injury, the policy will then meet these repayments up to a certain period of time. Read more
Shared ownership hopes dashed for many people with damaged credit
August 4, 2009
Getting any sort of finance such as mortgage finance has always been difficult for those that have damaged credit, and in the past people with bad credit ratings that wanted to get a mortgage struggled for years, as lenders viewed them as high risk and therefore either refused them credit or charged them a very high rate of interest. Read more
Extra Costs Causing Hardship for Tenants
June 12, 2009
Tenants renting flats and houses in England have recently been faced with a rash of charges that is cutting into the money they have allotted for their expenses. One charity in England has labelled these extra charges by the letting agents as unjust and excessive. Read more
Family values need to be applied to the banking system
April 1, 2009
We all like to think that we instil good family values into our homes and loved ones, but the one thing that most of us would not associate with family values is the typical High Street bank. Read more
Will interest rates drop to 0%?
March 18, 2009
Since October of last year the UK has seen the base interest rate plummet, and it has fallen from 5 percent in October to just 1 percent following the February Monetary Policy Committee meeting, following a series of base rate cuts over a number of months. Read more
Will the drop in interest rates help the economy?
March 4, 2009
There have been unprecedented cuts in the UK base rate over the past five months, with the Bank of England slashing rates each month, resulting in the rate falling from 5 percent in October to just 1 percent following the February Monetary Policy Committee meeting. Read more
Use Any Extra Funds to Pay Down Your Mortgage
March 2, 2009
In the current credit crunch many homeowners in the UK are striving to build up their savings accounts so that they have money to fall back on just in case they may encounter financial difficulties in the future. Read more
New buyers could benefit from slashed auction prices on property
January 8, 2009
With the housing market experiencing volatile conditions and mortgages becoming increasingly difficult to get, many new buyers have found that when it comes to purchasing a property they have had to hold off because of affordability problems or simply because of the risk of property prices falling further after they have purchased the property that they want. However, some people could find that they are able to get their hands on a bargain property by going to auction, where they could end up paying far less than they imagined. Read more
Deadline set over fairness to mortgage customers
December 18, 2008
Over recent months the government has been trying to bring in new guidelines and rules in relation to mortgage lending, to ensure that mortgage customers are treated fairly by banks and lenders in the current difficult financial climate. Recently lenders have agreed that they will now wait at least three months before taking any repossession action in the event that a homeowner falls into arrears with their mortgage repayments, which gives the customer more time to reach an effective solution with the lender or to catch up with repayments. Read more
Low deposit mortgages – can you get one?
December 15, 2008
For many of those hoping to get onto the property ladder in the current difficult financial climate the area of deposit levels is something that often puts a spanner in the works, particularly for first time buyers who have little to no savings and no equity from a previous property to rely on. In the past deposits haven’t been too big an issue for those looking to get onto the property ladder, as many lenders offered loans to the value of the property or even over and above the value of the property, enabling first time buyers to get onto the property ladder without any deposit at all. However, since the onset of the global credit crunch in 2007 all of this has changed. Read more
Response to UK interest rate cut
December 13, 2008
In early October the government and the Bank of England surprised the nation by cutting the base rate by 0.5% a day ahead of the scheduled Monetary Policy Committee meeting, where interest rates are usually cut. Like a number of other central banks across the globe, the Bank of England cut the base rate in an emergency move to try and boost the failing economy and stave of recession, and the move was welcomed by many consumers and industry groups. Read more
Mortgage market could slump massively by end of year
December 10, 2008
As most people will be only too well aware the mortgage market in the UK and in other parts of the world has slumped over recent months, and for over a year, since the onset of the global credit crunch, nations have been suffering huge financial problems, with liquidity in the financial markets all but grinding to a halt. In the UK and other nations this has resulted in radical changes in the mortgage market, which has slumped enormously as the days of easy credit disappear and a new approach to lending comes into play. Read more
Just where is the taxpayer’s money going?
December 8, 2008
Over recent months officials from the government, such as the Prime Minister Gordon Brown and the Chancellor Alistair Darling, have regularly been on our television screens and in the papers telling us about various bailout schemes that are being put into place to bailout the UK’s struggling banks, get the wheels of the mortgage market moving again, and improve the housing slump. Read more
5% mortgages still falling
November 26, 2008
First time buyers have had it tough for many years. Out of the past eleven years ten of them have seen house prices soaring year on year, and for first time buyers this has resulted in being priced out of the market altogether, with houses costing hundreds of thousand of pounds instead of tens of thousands of pounds. However, over the past year it has been a very different problem that has hit the average first time buyer, and this is the lack of affordable finance to get onto the property ladder. Read more
What you need to look at before you purchase a property
November 26, 2008
Buying a house is a huge commitment, and even in the current financial climate where mortgages are more difficult to come by and house prices are falling but still high, many people decide to take the plunge and purchase a property. The last thing that you want to do when buying a home is end up with the wrong property at the wrong price and in the wrong are, so it is important to research different aspects before you take the plunge and buy a home. Read more
Will the base rate cut really help borrowers?
November 24, 2008
In the past the rules behind interest rates charged by mortgage lenders seemed to be pretty simple - when the Bank of England put up the base rate then mortgage lenders would put up their borrowing rates by the same amount, and when the Bank of England cut the base rate then lenders would cut their borrowing rates by that amount. Simple and straightforward. Read more
Responses to surprise rate cut
November 18, 2008
This week saw central banks around the globe take the unprecedented step of cutting base rates in order to try and rescue the world’s financial markets, breathe life into failing economies, and restore the confidence of consumers. Gordon Brown, the Prime Minister, and Alistair Darling, the Chancellor of the Exchequer, called a special press report earlier this week, and announced that the Bank of England had cut the base rate from 5% to 4.5% reflecting a half a percent cut. Read more
What does the government rescue plan involve?
November 16, 2008
Recently the UK government, like some other global government officials, announced details of a proposed rescue plan to bail out the struggling financial markets in the UK, restore consumer confidence, and boost the economy. The details of the plan were unveiled by the Prime Minister, Gordon Brown, and the Chancellor, Alistair Darling, at the same time as the announcement about the surprise base rate cut of 0.5%, which came just a day ahead of the scheduled Monetary Policy Committee meeting where the base rate is usually set. Read more
What should the banks give us in return for the bailout?
November 10, 2008
We have all heard the proposals and plans that the government has put in place to bailout the banking system in the UK, and the bill for the bailout is likely to run into hundreds of billions of pounds. Moreover, the funding is to come from the public purse, which effectively means that it is the taxpayer than is funding the government bailout, and quite rightly consumers are looking for something back in return for the bailout money. In a recent survey a number of issues were highlighted by consumers, and it appears that there are many changes that we want to see made at UK banks. Read more
How low will rates go?
November 9, 2008
Interest rates have been causing problems for many homeowners and would be property purchasers over the past couple of years. Between August 2006 and July 2007 the base rate was increased no less than five times, and with each rise being 0.25% this took the base rate from 4.5% to 5.75%. For many homeowners with variable rate mortgages this caused huge problems, as their monthly mortgage repayments rocketed by hundreds of pounds a month in some cases. Those that were hoping to get onto the property ladder found themselves priced out of the market because they could not afford to take out a mortgage at such a high rate of interest. Read more
Tightening of rules over doorstep sellers
November 3, 2008
Doorstep selling has always been a controversial area, but at the same time there is evidence that the number of people that are turning to doorstep sellers offering cheap goods and services has been increasing over the past year as a result of the tighter credit conditions that have come into play since the onset of the global credit crunch. Many people have now found that they are unable to get finance to pay for more expensive work from more reputable firms, and many have therefore opted for cheap services and goods from doorstep sellers. Read more
Will you be cutting your spending to focus on your mortgage?
October 21, 2008
Over the past ten years the UK has gone through a housing boom, and this has seen some lucky homeowners see their property prices rocket. Many have been delighted to see just how much their equity levels have increased as a result of soaring property prices, and this has made it possible for many homeowners to borrow large sums of money secured against the high levels of equity in their homes. Read more
Mixed reactions on housing proposals from government
October 19, 2008
The government in the UK has made a number of new proposals recently to try and kick start the slow housing market, and amongst the actions taken by the government are a suspension in stamp duty for properties up to £175,000, and also the provision of loans for first time buyers looking to purchase new build properties. Industry groups and officials have offered mixed reactions to these moves, some of which can be seen below. Read more
Is it time to scrap HIPs?
October 17, 2008
There is no doubt that when legislation relating to Home Information Packs was brought in the year before last there was a great deal of controversy and dissatisfaction amongst both homeowners and various industry groups, such as estate agents. Officials from the Labour government have been insisting that these packs are a good idea, and that they will make the house selling process far faster. However, whilst Labour officials continue to defend these HIPs officials from other parties are insistent that they need to be scrapped. Read more
Could you pick up a property bargain at auction?
October 16, 2008
As most people are only too well aware the prospect of being able to afford a property these days is very bleak, even thought property prices are falling, as they have been for the past eleven months. Whilst house prices have been falling month on month, the cost of buying a property is still very high. On top of this the ability to get a mortgage for such a substantial amount of money has become increasingly restricted, with lenders exercising far more stringency because of the effect of the global credit crunch. Read more
Could stamp duty relief help to boost the housing market?
October 14, 2008
Over the past few months the housing slump in the UK seems to have become more and more pronounced, with estate agents unable to shift many of the properties on their books and with sellers resigning themselves to the fact that even if they do manage to sell their homes it will most likely be at a far lower price than they are asking. The effects of the global credit crunch, the state of the economy, and soaring inflation levels have all affected the low level of property sales over recent months. Read more
What will you choose if you need to remortgage?
October 13, 2008
When choosing a mortgage product it is very important that you go for a mortgage that is going to prove suitable and save you money wherever possible, as your mortgage is a daunting long term financial commitment. In the past choosing a mortgage was relatively straightforward. If interest rates were low and were more likely to go up than down in the future most people went for a fixed rate mortgage to protect the lower repayments in the event that the base rate went up. In cases where the interest rate was quite high and the most likely movement would be downwards people have opted for a base rate tracker, so that their repayments would fall when the base rate went down. Read more
Blanchflower speaks up in favour of rate cuts
October 9, 2008
Earlier this month following the latest Monetary Policy Committee meeting the Bank of England announced that for a fifth month in a row the base rate was to be kept on hold at 5%. Interest rates soared five times between August 2006 and July 2007, each time rising by 0.25%. Between July 2007 and December 2007 the rate remained stuck at 5.75%. However, between December 2007 and April 2008 there were three 0.25% cuts in the base rate bringing it down to 5%, where it has remained since. Read more
Attracting buyers for your property
October 8, 2008
If you have been trying or even thinking about selling your home over recent months you will already know what a tough time you could be facing. Property sales have plummeted over recent months, and the situation has been fuelled by falling house prices, which is putting potential buyers off due to the risk of falling into negative equity, and also by tighter credit conditions, which is resulting in many would be buyers being unable to get the necessary funds required to purchase a property due to the global credit crunch. Read more
Make sure you keep up with repayments on your secured loan
October 7, 2008
In the past many people were nervous about taking out a secured loan, as the very fact that the loan was secured against the home made some people extremely wary. However, for those with damaged credit there was very little choice other than to opt for a secured loan, as most unsecured lenders would not entertain the idea of lending to someone with damaged credit. Read more