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
Will house prices rise or fall?
October 6, 2008
A huge number of industry officials and agencies have been predicting since last year that since the housing bubble burst house prices would continue to fall for the next couple of years in the UK. Some officials have predicted that house prices could plummet over the next couple of years, with a number of professionals sating that the value of properties could fall by 17% over the next year and by up to a third over the next couple of years. Read more
Credit unions performing well in the wake of the credit crunch
October 2, 2008
Over the past twelve months, since the onset of the global credit crunch, many people have become distrustful of banks, and many others have found that they no longer have access to some of the services that banks offer, such as loans and other forms of finance. According to a recent report this trend is resulting in increased custom for credit unions, which are community run institutions and offer many benefits for members. Read more
Should you go direct to lender or through an intermediary for your mortgage?
September 25, 2008
These days getting a mortgage can be really difficult, and the global credit crunch has impacted heavily on the mortgage sector heavily, leaving consumers with little choice when it comes to finding a mortgage and resulting in lenders really tightening up on their lending criteria. Whilst the base rate has come down three times over recent months many lenders have continued to hike up their mortgage interest rates, making it more expensive for consumers to borrow. Many lenders are also demanding higher deposit levels and charging huge arrangement fees, which has added to the problems that borrowers face. Read more
Income and outgoings set to cause consumers problems
September 22, 2008
The governor of the Bank of England, Mervyn King, has recently highlighted how below inflation wage rises coupled with soaring food, petrol, and living costs are set to cause many households severe problems over the foreseeable future. Mr King warned households in a recent speech to brace themselves for some of the most challenging times that many may have yet faced in terms of their finances, with outgoings set to far outweigh income levels in the current economic climate. Read more
How to ease the financial strain at home
September 20, 2008
The global credit crunch, tighter credit conditions, rising bills, and soaring living costs have all taken their toll on household finances, and many consumers have found that it has become increasingly difficult to cope with their finances, with many finding that their income is way less than their outgoings. Many industry officials have said that the situation is set to get worse, with the Bank of England hinting that rate cuts could come to a stop whilst the government tries to bring inflation under control, energy industry officials stating that bills could soar in the autumn, and little hope of food and petrol prices coming down. Read more
Offers on properties being dropped just prior to exchange
September 14, 2008
A recent report has highlighted a problem that many homeowners are now experiencing, with the housing market having swung abruptly from a sellers market to a buyers market. Many homeowners are now experiencing difficulties in selling their homes for a number of reasons. One reason is that mortgage lending has dried up over recent months, and this has resulted in many would be buyers being unable to get a mortgage to purchase property, as well as due to would be buyers experiencing nerves over taking the plunge in case property prices continue to fall, as they are expected to do, as this could leave them facing negative equity. Read more
How are estate agents bearing up to the housing crisis?
September 8, 2008
The housing slump in the UK has hit rock bottom over recent months and estate agents have been reporting very poor sales figures over this period. The housing crisis has been fuelled by one disaster after another, and all of this has added up to housing transactions all but grinding to a halt in England and Wales. House prices have been falling for the last ten months, which has put many people of buying property in case the value of the home continues to fall after they have made the purchase, leaving them facing negative equity. Read more
Some signs of the weakening economy
September 5, 2008
Most of us have heard rumours and speculation over whether the nation is on the brink of recession lately, and there is little doubt that the economy has taken a real battering of late. This has been worsened by the fact that interest rate cuts from the Bank of England have come to an abrupt halt as a result of soaring inflation levels, having been kept on hold since April of this year. Some industry official have said that the Bank of England has had no other choice but to hold interest rates steady, given that the rate of inflation has reached nearly double the government target of 2%, coming in at 3.8%. However, others have said that the decision spells disaster for the economy, which is already going through a marked slowdown. Read more
Even wealthier borrowers are now struggling to repay their loans
August 27, 2008
A recent report has claimed that suffering severe financial difficulty is no longer a problem that affects only low income consumers. The report shows that financial difficulties are now even hitting homeowners living in fairly affluent areas, indicating that the current financial climate is also impacting heavily on the finances of those that would normally be considered to be fairly well off. Read more
Cost of home improvements rising for homeowners
August 25, 2008
Homeowners have received more bad news recently, after a report showed that the cost of home improvements has rocketed over the past couple of weeks. This comes at a particularly bad time, as many homeowners who are unable to sell their homes due to tighter mortgage lending conditions and falling house prices have decided that they may as well stay put and improve their homes to suit their needs rather than selling up at a low price and moving on. Read more
What are payday loans for?
August 25, 2008
Have you even reached the middle of the month, when payday is still a couple of weeks off, and encountered some form of emergency where you need to raise finances that you simply will not have available until payday? This is something that has happened to many people, and something such as an unexpected bill, an emergency repair, or even an unexpected event can result in the need to find money when payday still seems a long way off. Read more
The benefits of an unsecured loan
August 20, 2008
There are many different loan types available these days, and consumers that are looking for finance can choose a loan that caters for their individual needs and circumstances. There are loans available for all sorts of people, including homeowners, non-homeowners, and even those with bad credit. It is important that you find a loan that is suited to your needs and your circumstances before you apply otherwise you risk wasting your time applying for a loan that you are not eligible, and also damaging your credit as a result of rejection. Read more
Is an interest only mortgage a good idea?
August 20, 2008
For many consumers and lenders the idea of an interest only mortgage is a worrying one, as these mortgages are often seen as higher risk mortgages, and are frowned upon by some lenders who refuse to offer them in the current, riskier financial climate. However, for some people there may be no other option apart from an interest only mortgage, and this is because the repayments on a capital and interest mortgage – also known as a repayment mortgage – are simply too high to afford. Read more
Searching for the right loan
August 18, 2008
In the past finding the right loan could be a difficult and time consuming process, even though credit conditions were pretty relaxed and there was a wide range of loan products on the market to choose from. These days things have changed for the worse when it comes to finding the right loan, with the global credit crunch resulting in such tight credit conditions that the whole process has become increasingly difficult and time consuming, particularly for those with less than perfect credit. Read more