UK Secured Loans Blog: August 2006

Monday, August 28, 2006

Television turns Britain into a nation of home improvers

With more and more home improvement programmes on television an increasing number of homeowners are switching off the box and springing into action improving their own homes. Research conducted by Halifax in 2004 has shown that 76% of home owners in England and Wales watch home improvement programmes and of these, 39% are inspired to improve their own properties. 31% stated that they are influenced to redecorate and 25% are so inspired that they make even bigger home improvements.

The most active among those surveyed by Halifax are the 25 to 34 year olds, and the most active part of the country was those living in the North East with a total of 64% of home owners improving their homes. The most popular improvement revealed by the Halifax survey was new flooring, with 50% of respondents stating that they had chosen to change the floors in their homes. The garden came in as the second most popular area to improve, with 37% of respondents saying that they had improved their gardens recently. Better bathrooms and kitchens also ranked highly with double glazing being the fifth most popular area to improve.

Home owners gave various reasons for their decision to improve, the most popular reason being to enhance the way their homes look. Over a quarter of respondents said that they wanted to improve their homes to improve their standard of living. Other reasons for making improvements included necessity, to add value and finally to add more space.

Craig Donaldson, head of mortgages and secured lending at Halifax said: ‘It is heartening to see so many homeowners are taking such pride in their homes – whether or not it is because they have been influenced to do so by a television programme. However, even if you are making improvements purely to improve your own living conditions remember that any alterations must by in sympathy with the surroundings. Don’t get carried away. You may, for example, fancy somewhere to cool off on hot summer days but a swimming pool in the garden of a terraced house could detract from its value and make it harder to sell.’

When it came to actually making the improvements, half of homeowners stated that they carried out the work themselves while the rest opted for a local firm or specialist contractor. Time spent on making improvements ranged from weeks to months. 38% of home owners took a week or less to carry out the work, 30% took more than a week and for 9% of those surveyed, home improvements took more than six months to complete. The amount spent on home improvements by respondents to the Halifax survey varied from £1,000 to £10,000.

For home owners wanting to make bigger investments in their homes, a secured loan could provide them with the finance needed to carry out the work. Tasteful alterations made in sympathy with the property surroundings could add value to the home, allowing home owners to move up the property ladder without moving. Secured loans are usually available for up to 100% of a property’s current value, minus any outstanding mortgage balance and can be repaid over a term to suit the borrower, usually 5 to 25 years.

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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Friday, August 25, 2006

Loans could help embarrassed Brits who bank online

Many Brits are so embarrassed by their finances that they choose to bank online rather than discussing personal financial matters over the phone or face-to-face, according to Lloyds TSB research. New figures from the group have shown over half of the UK population – 54 per cent in total – opt to bank online rather than face the possibility of discussing their financial matters openly.

The largest factor in wishing to bank online is the privacy this method offers with a majority of 45 per cent of people citing this as the reason they did so. Also, two fifths - or 43 per cent - of those questioned in the survey stated they would feel happier applying for a loan online.

Anita Hockin, head of Internet, Lloyds TSB, said: "Money is one of the few subjects that many people still feel uncomfortable talking about, even with their bank. Internet banking has become increasingly popular in recent years, not just because it's convenient, but because it gives people privacy when it comes to managing their money."

The research highlights that money is a sensitive area for many, and this could be because people are unsure how to keep on top of their finances. A secured homeowner loan may provide a solution for individuals who want to lower outgoings by consolidating multiple debts. This could help them take control of their finances. Borrowers should however remember that repaying borrowing over a longer term will increase overall interest charges.

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Wednesday, August 23, 2006

Luxury spending may lead Brits to debt consolidation

Poor spending practices by Brits that lead to many consumers spending their money on luxury material possessions rather than clearing their overdrafts could spell an increase in the need for debt consolidation.

New research from IFA Promotion has shown that Brits are more likely to spend any additional money on luxury goods than on clearing their debts.

When questioned, respondents said that if presented with a 25% pay rise they would prefer to enjoy the money immediately, rather than put it away for retirement. Such attitudes could see many consumers weighing up the benefits of a debt consolidation package as a way of reducing their outgoings.

Commenting on the research, David Elms, IFA promotion spokesman, said "Despite well-documented and countless warnings that as a nation, we are not saving enough, it seems that people are yet to adopt a sensible savings mantra. And whilst the research is based on a hypothetical situation, it serves to highlight a very real problem in that people are too reluctant to forgo their spending to secure a comfortable financial future. People need to place clearing debt and saving much closer to the top of their list of financial priorities."

A well-suited debt consolidation package from a reputable company could provide a way to help consumers out of financial difficulties. It is however important to remember that repaying borrowing over a longer term will increase overall interest charges.

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Monday, August 21, 2006

Home dining can pave the way for home owner loans

New research shows that an increasing number of money conscious Britons are staying in rather than going out.

The research from MINT shows that many Brits are opting to stay in and that this may be a reflection of their desire to take control of finances. The figures showed that half as many Brits eat and drink out as did a decade ago with many feeling that it is more expensive than ever to eat out.

Many Brits prefer the ambience in their own homes to that of other venues and some prefer to stay in than have the inconvenience of travelling.

Jerry Toher, Managing Director of MINT, said: "We know from our research that a major reason for people to entertain at home is to control their finances. It seems that clever spending is fast becoming a priority for people, but without compromising on having fun.

Homeowners enjoying savings made by socialising at home could consider improving the ambience of their entertaining areas with a secured loan. Making the right home improvements could add value to existing property, whether it be an extension, conservatory or new state of the art kitchen. And, with more and more people staying at home, they can make the most of any improvements they make by spending time in the home.

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Wednesday, August 16, 2006

Mortgage lending rise may increase home owner loans

New figures from the Council of Mortgage Lenders (CML) discovered that lending for property purchases in May reached a high of £28.7 billion.

This represents a 30 per cent increase compared to the same data for the previous year and is also just 0.5 per cent short of the record CML mortgage lending figure of £28.9 billion from July 2004.

Michael Coogan, CML Director General, said "The recent lending market has been consistently strong. Lending has hit record levels in six of the last eight months supported by the strength of the London market, interest in higher priced properties, and strong consumer confidence."

However, he added there were some factors – such as the World Cup fever sweeping the country – that may have an effect on lending figures.

"We expect demand to moderate later this year, but it looks set to stay robust for the immediate future - although property viewings might be affected by World Cup fever," Mr Coogan added.

Separate figures from the British Bankers' Association (BBA) have also reinforced the figures from CML of an increase in mortgage lending across the UK.

With such buoyancy in the market, many homeowners might be tempted to take out a competitively priced home owner loan as they plan their finances.

The BBA figures suggested that new mortgage lending figures increased by £5.7 billion in May, which is higher than the £5.1 billion average rise over recent months.

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Monday, August 14, 2006

Lifetime mortgages allow for home improvements, holidays and cars

Research recently conducted by Norwich Union has revealed that customers taking out a Lifetime mortgage with them spend the money released on home improvements, holidays, new cars and to top up their income. 77% of people surveyed commented that they would be most interested in taking out a lifetime mortgage to fund home improvements, while holidays were the second most popular reason.

The survey showed that lifetime mortgage customers don’t take the decision to opt for this financial solution quickly. The majority of customers wait between three and twelve months before speaking to the Norwich Union or a financial advisor.

Daren Carter, Director of Sales and Marketing at Norwich Union Personal Finance commented ‘These figures show that the majority of equity release money is needed for practical purposes.’

Individuals looking to fund home improvements could find that a secured personal loan may be an alternative to a Lifetime mortgage. Secured personal loans can be repaid over a term to suit the borrower, usually between 5 and 25 years.

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Friday, August 11, 2006

Brits' large holiday spend could be helped by secured loans

New research by American Express Insurance has shown that the average amount spent by Brits on holiday is a significant £828.69. The company polled 10,000 people regarding their spending habits while on holiday and found that once food and drink, excursions, entertainment and gifts were taken into account – the average amount spent was £828.69.

According to the firm's figures Brits are spending an average of £119.59 before the holiday has even got underway. In fact, 74 per cent of holidaymakers spent funds on maps and a guide book, 58 per cent splashed out on clothes and 53 per cent invested in a sharp new haircut.

During the holiday itself, food and drink expenditure accounted for the lion's share of spending with an average of £331.12, which was closely followed by the shopping budget with an average of £230.68.

Joanne Field, Marketing Manager, American Express Insurance Services, said: "The survey results have been very illuminating about our behaviour and attitudes to going on holiday. Few people would carry such large sums of cash with them in the UK, so it's surprising so many risk their cash when they travel abroad. The survey also showed whilst 60 per cent of us on a fortnight's holiday take more than £250, 40 per cent actually took more than £500 and 15 per cent took more than £1,000."

The figures show that the importance of holidaying builds up and sometimes unexpected spending can add up on holiday. Individuals who find that they have run up large credit card debts to pay for holidays might find that consolidating their debts with a secured loan could help them manage their finances better in the long term. It is however important to remember that repaying borrowing over a longer term will increase overall interest charges.

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Thursday, August 03, 2006

New families on a budget look to save money

Co-operative insurance recently teamed up with The Children’s Mutual to put together a top 10 list of money saving tips for new families on a budget.

It is suggested that new families could consider changing their mortgage as the first step to saving money. Opting to fix a rate would make budgeting far more straightforward and if the interest rates rise, worries about increased mortgage payments are eliminated.

Re-evaluating family cars is another area that makes for savings, especially if you happen to run a two seater sports car which becomes impractical with new family arrivals. It is never too early to start saving for a new family so being organised with budgets during the months before new arrivals are born is advisable. Other advise for new families includes buying reusable nappies and making baby food purees at home rather than buying jars.

David Newman, Director of Marketing at Co-operative insurance said ‘The emotional and physical strain of starting a family is stressful enough for most people. Added to that the financial strain and the whole experience can become quite daunting. With a little careful budgeting and some sensible planning, the arrival of a new baby can be a miraculous event with no financial worries.’

Growing families finding that they need more space could consider a secured homeowner loan to carry out vital home improvements.

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Tuesday, August 01, 2006

You don’t have to move house to move up the property ladder

As the price of property and moving house continues to grow, it might make sense for home movers to stay where they are. The current trend is to improve rather than move, and this is highlighted by some 330,000 domestic planning applications that were submitted between March 2004 and March 2005. This is almost twice the number submitted in the previous decade.

According to a recent article in The Times Online, the number of people moving has dropped since 2002. Television programmes such as Changing Rooms have been said to provide a source of inspiration for homeowners looking to move up the property ladder. These programmes have shown homeowners the potential to grow and develop their own homes, rather than incur the expense of moving house.

But it is not just television and media influencing individuals to improve what they’ve already got. Increases in stamp duty have become another growing cost of moving house. Add to that the price of a basic homebuyer’s report and the expense of a full building survey and the costs continue to mount. What’s more, if the sale proceeds then there are conveyancing and removal costs to think of.

For those individuals opting to improve rather than move, they might find a secured home owner loan could provide them with the funds needed to carry out the home improvements they desire.

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Monday, August 28, 2006

Television turns Britain into a nation of home improvers

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Friday, August 25, 2006

Loans could help embarrassed Brits who bank online

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Wednesday, August 23, 2006

Luxury spending may lead Brits to debt consolidation

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Monday, August 21, 2006

Home dining can pave the way for home owner loans

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Wednesday, August 16, 2006

Mortgage lending rise may increase home owner loans

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Monday, August 14, 2006

Lifetime mortgages allow for home improvements, holidays and cars

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Friday, August 11, 2006

Brits' large holiday spend could be helped by secured loans

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Thursday, August 03, 2006

New families on a budget look to save money

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Tuesday, August 01, 2006

You don’t have to move house to move up the property ladder

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