Monday, July 20, 2009
Category:
Secured Loans
By analysing industry data, Sainsbury’s Home Insurance has revealed that the annual cost of running a home now stands at approximately £11,455.
This is equivalent to a household outlay of £220 per week or £31.38 per day.Compared to two years ago this figure has only increased by 2.6 percent, with the primary reason being cited as a slight decrease in mortgage payments. Mortgage payments currently account for a substantial 60 percent of total household outgoings, which is 1.53 percent lower than in March of 2007. This reduction in mortgage payments has assisted in counterbalancing the increases incurred on all other household expenses. For example, Sainsbury’s points out that gas and electricity prices have increased most significantly in the past two years.
Following mortgage payments, the second greatest cost to households is reported to be council tax at 12.3 percent of overall expenditure. A rise in excess of 7 percent during the past two years was noted, while a rise of 10 percent was found to be the case for water and sewerage costs. According to recent research by Sainsbury’s Home Insurance, there are indications that some people are attempting to cut costs amid the recession. For example, in the past 12 months, 946,000 people have either cancelled their home contents insurance or reduced their level of cover. In addition, virtually 700,000 people have taken the same approach to their buildings insurance as a result of their financial state.
Sainsbury's Home Insurance Manager, Joanne Mallon, commented: "We spend thousands of pounds each year running our homes and have often invested even more money on furnishings and decorating. Yet, so many people are putting this investment at risk by cutting back on their home insurance. "Good quality home insurance doesn't have to be expensive. The recession is having an impact on nearly everyone. However, there are some great deals to be had by shopping around when it comes to any costs relating to your home; be they for energy, mortgages or home insurance. Spend a little time shopping around and you'll be surprised at how much you could save."
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Homeowners who would like to make major improvements to their property, but do not have the funds required to make a large outlay due to increasing household costs, could consider taking out a secured loan. A
secured loan to make home improvements could facilitate a multitude of projects, such as that much-desired loft conversion, extension or conservatory for extra living space. Some borrowers may alternatively decide to utilise the funds to finance a new kitchen or bathroom, whilst others may choose to have their garden landscaped for enjoying those long summer days. A secured loan is one of many options to fund home improvements.
