Monday, September 7, 2009
Category:
Secured Loans
According to research conducted for LV=, 28 percent of British adults feel that the prospect of never becoming a homeowner is ‘too terrible to consider’.
Furthermore, 39 percent admitted that they would feel ‘miserable’ at the possibility of never owning a property.
Of those who do own a home, it was found that 51 percent would commence a second job to help pay the mortgage. In addition, 43 percent would take out all or some of their life savings to meet mortgage repayments, and 29 percent would be prepared to sell the family silver for this purpose. Nevertheless, 9 percent have insurance to cover their mortgage repayments and other regular outgoings over the long term in case they suddenly lose their income.
Further measures that homeowners would be prepared to take in a bid to retain their property include taking in a lodger at 19 percent, and seeking financial assistance from friends at 18 percent. Additionally, 12 percent would move elsewhere in order to rent their home out. LV= head of protection, Chris McFarlane, commented: "The financial turmoil of the last year has done nothing to dampen our national obsession with home ownership. It's fascinating to note just how far people would go to avoid having to give up the keys to their castle."
It would appear that the challenging economic conditions have failed to put a damper on the home-owning desires of the nation’s under 35 year olds. In fact, LV= uncovered that 74 percent can not picture themselves without their own property one day. In relation to this group of young homeowners, the research revealed that they are more financially cautious than older generations. Amongst the former, 43 percent have some form of mortgage protection compared to an average of 37 percent across all age groups. However, 65 percent have mortgage payment protection insurance (MPPI), which often only offers cover for a limited period of time.
Chris McFarlane continued: "It is encouraging to note that younger homeowners are more aware of the need to protect their mortgage payments. But they need to be very clear about what their cover includes and whether the replacement to their regular income would dry up after a short time, as MPPI often does. Protecting a breadwinner's loss of income over the long term now, rather than reacting only when the worst happens, would make just a modest impact on most people's finances, yet it would provide vital assistance if needed."
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Those who have recently fulfilled their dream of owning their own home, but do not have the funds required to make their property quite what they desire, could consider taking out a
secured loan. A secured loan for home improvements could be the ideal solution for homeowners that are keen to put a personal stamp on their new surroundings. One of many finance options available, a secured loan could allow the borrower to embark upon a range of projects from re-decoration to the addition of an extension or conservatory for extra living space.
