UK Secured Loans Blog: June 2006

Tuesday, June 27, 2006

Home improvements – what matters when you want to add value to your home

A recent research survey on the housing market conducted by Nationwide, has revealed which home improvements can really add value to your property. While location remains to be the key to house value, other factors can influence the price at which homeowners can sell.

According to the survey, carrying out a loft conversion could add up to 20.9% onto the value of a house. Adding an extra double bedroom to a two bedroom house could increase its value by a further 12%. Doing the same thing with a three bedroom house would add around 8% to a property’s value. Adding bedrooms by converting existing space can also add value to a house, but not to the same degree as adding more room.

Nationwide’s survey points out that improving rather than moving saves stamp duty, legal fees; removal costs; the bother of selling a property and finding another one is also cut out by making home improvements.

When making additions to a property, its not just the number of bedrooms that counts. Adding an extra bathroom can add around 5% to the price of a similar house with just one bathroom. The survey points out however that this should not be at the expense of an extra bedroom.

While most houses these days have central heating, property owners of those without should be aware that this adds about 7% to the value of a house. Space for the family is not the only concern of property purchasers, a double garage to house beloved cars can also add 14.5% in value.

Homeowners wanting to add value to their homes by carrying out a loft conversion, adding an extra bedroom or bathroom, or a conservatory, could consider a secured loan to maximise their investment. By improving rather than moving, a homeowner loan could provide the short term cost saving of moving house to accommodate a growing family highlighted in the survey by Nationwide.

Nemo´s typical rate is 9.0% APR variable. A NEMO LOAN IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

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Monday, June 19, 2006

Homeowner loans for financial difficulties

There is still a huge gap between the richest and poorest UK citizens, new figures have shown.

According to the Office for National Statistics (ONS), in 2004/05, the income of the richest fifth of households in the UK was approximately 16 times higher than that of the poorest fifth.

With taxes and benefits taken into account, this ratio fell to four to one, which demonstrates that the gap has not narrowed since the previous years.

The tax system in the UK benefits pensioners, the figures found, as they pay less in tax than they gain in benefits, while single adult households with children and couples with three or more children also profit overall.

However, some households are required to pay more in tax than they receive in benefits, demonstrating the considerably different effects of the tax regime on various groups in the UK.

Homeowner loans may prove beneficial for households with financial difficulties, although it is essential to carefully evaluate affordability before deciding to take out a loan.

It is also advised to shop around for the best available homeowner loans deal on the market, as this could result in significant savings.

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Thursday, June 15, 2006

First-time buyers hit by stamp duty

Many first-time buyers are struggling under the weight of stamp duty, it has been revealed.

New figures from the Council of Mortgage Lenders (CML) have demonstrated that half of all first-time buyers are required to pay stamp duty, while 80 per cent of those moving to a new home are also required to pay the tax.

"With half of [first-time buyers] having to pay stamp duty it is clear that tax continues to add to their affordability problems," commented Michael Coogan, director general of the CML.

The survey by the CML has revealed that there has been a fall in remortgaging compared with the previous year, while other types of lending including buy-to-let and further advances have grown.

"If it had been uprated in line with house price inflation since 1997 the threshold would stand at £145,000, helping many more first-time buyers onto the property ladder and into their own homes," Mr Coogan explained.

The chancellor has increased the stamp duty threshold to £125,000 from £60,000 in the last two Budgets.

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Tuesday, June 13, 2006

Secured loans to get bigger

It appears that the size of secured loans is set to continue to grow over the course of 2006, as yet another piece of research is predicting an upturn in property values.

A new survey released by the Building Societies Association (BSA) has revealed that Building Society Chief Executives believe property prices could rise by between four to five per cent over the course of 2006, meaning that the cost of buying a new property is set to increase.

"Building society bosses are experts in the mortgage market and it is good news that they think the market will remain buoyant in 2006," revealed Adrian Coles, director general at the BSA.

The news means that more people taking out loans secured against their property will be able to borrow more money, as the value of their homes increases.

"Existing homeowners will benefit from above inflation returns," added Mr Coles.

The report from the BSA discovered that over 89 per cent of building society chief executives polled revealed that they anticipate the market will remain buoyant in 2006.

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Friday, June 09, 2006

Home owner loans for garden revamp

Proud homeowners are spending a huge amount of money on garden makeovers, new figures have revealed, particularly as the warm summer months are approaching. According to research from More Than insurance, Britons forked out £2.5 million last year on garden goods such as patio heaters and barbeques in the last year, with UK gardens now worth a massive £52 billion. Homeowners wishing to add a brand new garden shed to their garden or hire a professional landscaper for a complete revamp may want to consider home owner loans as a method for financing the move.

It is thought that the popularity of television garden makeover programmes has heightened the desire among Britons to put money into their gardens, with one in eight garden-owning Britons admitting that such shows have motivated them. The study found that a strong design element is now present in nearly a quarter of all UK gardens.

"In the last few years we have seen a rise in popularity of garden furniture such as patio heaters and hot tubs, and it seems more and more people are taking pride in their outdoor space," explained Craig Allen, head of home insurance at More Than.

Home owner loans offer an affordable and convenient way for people to enhance their backyard. With 41 per cent of those surveyed revealing that they value their garden as much as any room in their house, it is clear that Britons are prepared to spend considerable amounts to improve the look and feel of their garden.

In addition to enhancing the garden for summer barbeques, many homeowners are also realising that improving the look of a garden can prove considerably beneficial when it comes to selling a property. With the housing market extremely competitive, an attractive garden can significantly increase the value of a home. Home improvements can be vital in today's housing market, with home owner loans available for those wishing to boost the value of their properties.

Britons considering taking out home owner loans for any home improvement projects are advised to consider whether they will be able to afford the repayments before going ahead and to shop around for the best possible deal on the market.

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Wednesday, June 07, 2006

REITs will 'boost property sector'

Experts have said that US real estate investment trusts (REITs) will boost the global property sector if more countries adopt them.

As investors become increasingly eager to put money into property abroad, they will be keeping a close eye on the tax implications.

Several countries, including the UK, have already applied tax codes similar to those in the US, which release trusts from the majority of income taxes as long as they dole out 90 percent of taxable income to shareholders.

But others, are not yet ready to come on-stream with REITs and REIT-friendly legislation, and experts say that the prospect of losing favourable tax treatment when a US REIT goes overseas is holding many foreign investments back.

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Inflation falls yet property still attractive to investors

House price inflation declined to 3.6 per cent from 4.3 per cent in February, according to new figures from the Office of the Deputy Prime Minister (ODPM).

It is claimed that the average UK property cost £183,224 in the second month of the year, a reduction of £2,180 compared to January.

Yet despite these figures, property remains an excellent investment opportunity, with analysts pointing out that they are based on completed sales, rather than mortgage approval levels of estate agent prices.

First time buyers are also returning to the market, according to a report from haart estate agents, which suggests that property is still a sound investment.

In addition, February is traditionally a slow month in the property sector, with a significant increase in activity usually witnessed during the summer months.

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Tuesday, June 06, 2006

Debt help funding boost

The government has announced the recipients of a multi-million pound grant for helping people with debt problems.

Several charities will benefit from the grants, worth £45 million, which will be provided by the Department of Trade and Industry. Three national awards were handed out, in addition to one for Wales and one for each English region.

Among the 14 winners are the Citizen's Advice Bureau, Advice UK and several independent advice bureaus.

"For the vast majority of people, their level of debt is manageable. But for some, debts become overwhelming," said Alan Johnson, trade and industry secretary.

"We hear far too many stories about some of the most vulnerable people falling prey to loan sharks who exploit their fears.

"Or sometimes, people simply make the wrong decision about how best to manage their money problems and then spiral even further into debt because they don't know who to talk to."

Britons suffering from money problems may wish to acquire a debt consolidation loan to help them manage their finances better.

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Monday, June 05, 2006

Liverpool property hotspot revealed

Britons searching for a good property investment opportunity may wish to consider Bootle in Liverpool.

It has been revealed that the town has one of the highest rates of house price growth in the UK, gaining 12th spot on Halifax's list of the country's property hotspots, published in December 2005.

Bootle was also the second placed hotspot in England, following Wednesbury in the West Midlands, with all the other towns in the top 12 either located in Scotland, Wales or Northern Ireland, such as Alexandria in top spot, Coatbridge and Holyhead.

Following £600 million worth of investment in the area, families and young professionals are flocking to the town, reports the Daily Post.

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Friday, June 02, 2006

Secured loans 'cheaper than supermarket credit cards'

British borrowers have been warned that supermarket credit card deals can prove far more costly than they may first appear, with secured loans possibly a better option for many.

A study conducted by Moneynet has found that the loyalty benefits offered by some supermarket credit cards can be minimal when compared to the high interest rates often charged.

"Supermarket card holders who pile up debt on these cards while thinking they are getting a good deal from loyalty schemes such as bonus points or shopping vouchers are shooting themselves in the foot," remarked Richard Brown, chief executive of Moneynet.

Consumers may wish to consider acquiring secured loans rather than amassing debts on supermarket credit cards, with interest rates reaching as high as 28.8 per cent.

With secured loans often offering a far more beneficial deal, consumers are urged to think twice before signing up to a supermarket credit card scheme.

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Thursday, June 01, 2006

UK debt levels 'comfortable'

New research has indicated that the debt crisis in the UK may not be as bad as has been feared.

Due to declining base rates, mortgage interest payments currently total £4,542 a year, which is around the same as in 1990, while household income has doubled in the past 15 years.

Households with a mortgage pay out 13.8 per cent of their income in interest, compared to 25.8 per cent in 1990.

"Our research shows that although borrowing is higher than in the past – UK households overall are in good financial shape," remarked Chris Rhodes, managing director of Alliance & Leicester retail banking.

Base rates would have to soar to 8.5 per cent from their current 4.5 per cent in order to return to the debt crisis of 1990, the report stated.

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Tuesday, June 27, 2006

Home improvements – what matters when you want to add value to your home

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Monday, June 19, 2006

Homeowner loans for financial difficulties

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Thursday, June 15, 2006

First-time buyers hit by stamp duty

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Tuesday, June 13, 2006

Secured loans to get bigger

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Friday, June 09, 2006

Home owner loans for garden revamp

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Wednesday, June 07, 2006

REITs will 'boost property sector'

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Inflation falls yet property still attractive to investors

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Tuesday, June 06, 2006

Debt help funding boost

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Monday, June 05, 2006

Liverpool property hotspot revealed

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Friday, June 02, 2006

Secured loans 'cheaper than supermarket credit cards'

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Thursday, June 01, 2006

UK debt levels 'comfortable'

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