UK Secured Loans Blog: September 2006

Wednesday, September 20, 2006

Schooling creates £129 billion bill for today’s parents

The latest ‘Schools Sums’ index from the Norwich Union has shown that parents across the UK are set to spend £129 billion over the next 11 years. The average cost of sending a child to a state school from the age of 5 to 16 is now just over £14,000 compared to £10,000 in 2002.

Everyday schooling costs adding to the bill include transport, food and shoes. The schools research also showed that parents should expect to buy an average of 43 shirts or blouses, 48 pairs of trousers or skirts, 38 jumpers, 37 pairs of shoes and 33 school trips per child.

Boys parents can expect to pay a slightly bigger total bill as they usually require more to be spent on after school tuition, clothes and after school clubs. Other costs the modern day parent can expect include mobile and internet technology.

Commenting on the research, Simon Quick from Norwich Union said ‘Many parents think of state schools as being free but the costs are significant. Over £1000 of parents money gets spent per child each year just covering the everyday costs of sending our children to school. This quickly racks up for families with two or three children and with an increase of £200 per child a year over the last four years, parents need to consider the increasing needs and demands of our children!’

Parents who find that they have had to turn to credit cards to pay for increased costs could consider consolidating their debts with a secured homeowner loan. This could lower monthly repayments freeing up more income in the short term. Repaying borrowing over a longer term will increase overall interest charges and this should be considered when opting to consolidate debt.

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, September 18, 2006

Careful calculating for university will pay off

The latest comment from IFA Promotion on students starting university this year suggests that finance will be the last thing on their minds. Students are warned that they might walk away from university with large debts as well as their degrees. However some careful calculating could be the key to graduating with minimal debt. Students will be glad to receive IFA Promotion’s free fact sheet which outlines how best to prepare funding the best years of their lives. Advice given includes details of university costs and advice on part-time work, getting the best insurance, borrowing and credit deals, investment and savings options and last but not least; how to deal with debt during and after university.

Research from IFA Promotion highlights the fact that budgeting is the last thing on many students’ minds, with 80% admitting they don’t keep track of what they have. The increasing costs of tuition fees and ever rising cost of university indicates that many students and their parents could benefit from professional financial planning advice.

David Elms, Chief Executive of IFA Promotion, commented; ‘There are a lot more exciting things to do at university than sit down and work out a financial budget, but it can make such a huge difference to your post-graduation life, which seems so far away in Fresher’s week! Parents can help by making sure they discuss finances with their children at an early stage and families concerned about funding the university years can visit an IFA who will help to assess every available option and allow them to make informed decisions.’

One option for graduate homeowners could be to consider a secured debt consolidation loan to pay off multiple credit cards, personal loans and student loans thus wrapping several repayments in to one straightforward monthly repayment. Alternatively parents may want to consider a homeowner loan to help their kids on their way. Secured loans can usually be repaid over 5 to 25 years. Borrowers are reminded that repaying borrowing over a longer term will increase overall interest charges.

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Thursday, September 14, 2006

Relief for ‘rate tarts’ as new 0% APR balance transfer card arrives

Those looking for a good credit card rate will be relieved with HSBC’s announcement that its new credit card will offer 0% APR. Balance transfers will be kept at zero per cent interest for the first 12 months allowing cardholders a better chance to reduce the cost of their borrowing.

The interest free period for balance transfers has actually been doubled by HSBC, who are now in the minority of providers currently offering zero per cent interest on balance transfers for a full 12 months. This latest deal also gives cardholders the chance to use their cards for the first three months without incurring any interest charges.

Interest will only be charged from the date a transaction arrives on the account, rather than the day the transaction is made, giving cardholders a few more days grace. Along with the interest savings, HSBC can also offer customers advanced fraud detection services which keep an eye on any unusual activity on cardholders’ accounts.

Commenting on the new market leading balance transfer deal, HSBC head of consumer cards Spencer May said ‘At HSBC we continually look for ways in which we can help borrowers better manage their debt and we recognise that people are becoming more careful with their credit card borrowing. This is evidenced by recent reports which show UK credit card borrowing falling in four out of the last six months.’

Those with multiple credit cards who find that their 0% balance transfer deals are coming to an end could consider consolidating their debts with a secured homeowner loan. Rather than worrying about which card needs to be paid and when, multiple payments would be wrapped into one straightforward monthly repayment by opting for a secured homeowner loan over a term of up to 25 years. Repaying borrowing over a longer term will however increase overall interest charges.

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Monday, September 11, 2006

Modern day home improvements becoming a little out of the ordinary

Research conducted by Abbey has shown that some peoples’ home improvements are becoming a little out of the ordinary. People are no longer just excited by swimming pools and Jacuzzis, some are suggesting that they would like to see bomb shelters, balconies and bars added to their properties. 11% of respondents to the Abbey survey said that they would like a bomb shelter, the younger generation of 16 to 34 year olds being the most keen.

While traditional home improvements such as adding a new kitchen or bathroom, are still popular, the Abbey survey shows that the most popular areas on respondents’ wish lists are outdoor rooms, cocooning and nouveau naff. One in three respondents wanted to landscape their gardens, add a roof garden or build a balcony. Home comfort is becoming more important, with 53% of respondents stating that they would like to have a home cinema and gym. Home improvements which would have been considered to be crass in years gone by are making their return with seventy percent of respondents saying that they would like a Jacuzzi, hot tub or sauna.

Though naff is making a come back, the nation is still in love with home designs of days gone by. Ten percent of those surveyed would take great pride in restoring the original features of a period property, even going as far as wanting to replace plastic pipes with cast iron ones. Of those surveyed, women were the biggest lovers of authentic features in the home.

Abbey’s survey also questioned why we are so keen to make home improvements. The main reason revealed by their survey was that we are a rather indulgent nation, with 72% of respondents stating that it was to satisfy their own individual taste. Women were seen to be more commercial when it comes to adding value to property with 85% stating this to be a key reason for carrying out improvements compared to 79% of men, and that it was a cheaper option than moving house. Over 80 percent of respondents to the Abbey survey didn’t mind spending more on home improvements in order to get the job done properly.

Commenting on the survey, Angus Porter, Abbey’s Customer Director said: ‘With house prices still rising, many people cannot afford to move up the property ladder. But many have access to equity in their own property, which can be put to good use by funding home improvements to re-vamp their home to suit their lifestyle.’

An alternative option to fund home improvements is a secured home improvement loan. Home owners could find that by putting a secured loan to good use by adding a conservatory, extension or loft conversion, might add value to their property, allowing them to move up the property ladder without actually moving house. Secured loans can usually be taken over a term of 5 to 25 years and can provide home owners with the finance to create their dream home.

Related articles:
"Television turns Britain into a nation of home improvers"
"Make home improvements but avoid the expense of a special offer store card"

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Friday, September 08, 2006

DIY spend increases by 76% over a decade

Research from Halifax published in April this year shows a 76% increase in spending on DIY. In real terms, spend has increased from £6.4bn to £11.3bn. Tool purchase is revealed as the highest climber within the DIY segment, with an increase of 126% in the last decade to £4.2bn. Actual spend on DIY materials saw a 56% increase to £7.1bn.

The research from Halifax has shown that spending differs from region to region with home owners in London spending the most on repairs and maintenance of their homes. Home owners in the South East came second to London and those spending the least live in Scotland and the North East.

Though spending on DIY has increased by 76% in the last decade, the English Home Conditions Survey, (EHCS) states that more than 6 million homes did not meet survey requirements and are classified as non-decent. Private sector housing stock is improving at a slower rate than the social sector. The majority of houses fail on the standard of thermal comfort they provide.

Commenting on the results of the Halifax survey, Tim Crawford, Group Economist at Halifax said: ‘Spending on DIY has risen substantially over the past ten years, although there was a pause in spending in 2005, in line with the slowdown in the housing market. Spending on DIY is now double the spending on trades services. DIY spending is highest in the South of England, although there have been increases in DIY spending in the North of England and Scotland and Wales, reflecting the recent strength in housing markets in these regions.’

For home owners looking to fund their next big DIY or home improvement project, a secured loan could provide them with the finances they need to complete work. With carefully selected improvements, homeowners might even discover that they add value to their homes. Home owners who would like to add an extension, loft conversion or even a garden room to provide extra space needed for a growing family or entertaining, will find that a secured loan can usually be paid back over a term to suit them, allowing them to sit back and enjoy their home improvements.

Related articles:
"Credit debt climbs as DIY spending rockets"
"Home owner loans for GSI – the new DIY"

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Wednesday, September 20, 2006

Schooling creates £129 billion bill for today’s parents

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Monday, September 18, 2006

Careful calculating for university will pay off

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Thursday, September 14, 2006

Relief for ‘rate tarts’ as new 0% APR balance transfer card arrives

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Monday, September 11, 2006

Modern day home improvements becoming a little out of the ordinary

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Friday, September 08, 2006

DIY spend increases by 76% over a decade

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