UK Secured Loans Blog: November 2006

Wednesday, November 29, 2006

Home improvement bill in the region of £48 million.

The state of Britain’s houses has been highlighted by the Halifax Press Office. Figures show that the country will be facing an estimated £48 billion collective repair bill due to houses not meeting basic standards of heating or thermal comfort. During the survey the state of repair of a number of crucial building components including walls, windows, doors, chimneys, electrics and heating systems were assessed. Included also in the survey was if a property had modern facilities and services and the degree of heating and insulation, were also determined in the survey.

A staggering seven million homes in England do not meet the basic standards of ‘decent’ accommodation according to the EHCS (English House Condition Survey). The £48 billion repair bill is based on the premise that to bring each home up to the standards of decency would cost around £7,200.

With the average annual household spending on home improvements for the United Kingdom, according to the ONS Family Spending 2004 edition, standing at £1,612 it translates to 5.2% of total spending on housing and household goods. Collectively Britain spent £17 billion in 2004 on home improvements, which compared to the £48 billion repair bill, means that the cost for repair outweighs the spend.

Tim Crawford, Halifax Group economist, commented, “The majority of the homes that don’t meet decency standards, are actually owner occupied, highlighting the importance of helping these homeowners find affordable ways to make the repairs and improvements necessary.”

For homeowners wishing to fund home improvements a secured loancould provide the required finance to carry out the work, increasing property value in the long term and improve standards of living. Home improvement loans allow you to extend your property, add a conservatory or build the dream kitchen you’ve always wanted. Subject to status, you could borrow from £10,000 to £100,000, in the form of a secured loan, allowing for home improvements that will create a perfect living space.

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, November 24, 2006

Brits lavish money on homes in the run-up to Christmas.

With relatives and friends likely to pay a visit during the festive season, it seems people are getting ready to show off their properties. Low key cosmetic improvements such as decorating or painting seem to be the most common on the agenda of home improvements to be completed in the run up to Christmas. On average £1,426 is to be spent on properties over the next few months, showing the highest figure this year, a 10 per cent increase since last year, according to the Alliance and Leicester Mortgages moving improving index.

Findings show that nearly half of people in the UK are planning to spend some money on DIY in the run up to Christmas with the most popular home improvement jobs involving decorating. 30 per cent of people plan to smarten up their homes with purchases such as new carpets, curtains or furniture. Paul Cooper, Head of Mortgages at Alliance & Leicester commented that, “While Brits are preparing to lavish money on their homes, it seems they are cannily opting to spend more on outward or cosmetic appearances with decorating or painting, rather than costly tasks, such as a new kitchen or bathroom, so close to Christmas.”

According to research, those in their 30s and couples are the UK’s biggest spenders on home improvements. They tend to spend on average more than those who are single and those over 60. Findings have also shown that people in Yorkshire and Humberside have spent 16 per cent over the national average on DIY with an average of £1,649 this winter. This increase shows that with family and friends likely to pay a visit during the festive season, people are keener to make an impression with their property with mostly low key cosmetic improvements.

Paul Cooper, Head of Mortgages at Alliance & Leicester said, “This ‘keeping up with Joneses’ approach is quite compelling. Whilst the Christmas period plays a big part in this, the interest rate rises in the last year may have encouraged homeowners to focus on their own properties until rates stabilise rather than purchase a new home.”

Home owners wishing to carry out home improvements in the run up to the festive season may benefit from taking out a secured loan.This could provide them with the funds needed to carry out essential DIY. Simple home improvements are an easy way to increase a property’s value.

Usually available for up to 100 per cent of a property’s current value, minus any outstanding mortgage balance, a secured loan can be repaid over a term to suit the borrower, usually 5 to 25 years.

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Tuesday, November 14, 2006

NatWest survey reveals new students expect to pay £33,512 to get a degree

As A level students get their results, the 2006 NatWest Student Money Matters survey shows that this years freshers expect to pay £33,512 for degrees lasting 3 years. This has increased from last years figure of £28,600 and as a result, the new intake of students expect to graduate with debts of around £14,779.

The good news is that though graduate debt continues to rise, this is at a much slower rate than previous years. Average starting salaries are not set to help graduates pay off their student debts either, with the figure falling from £14,090 in 2005 to £13,860 in 2006. However the number of graduates confirming that they have a job ready for when they graduate has risen from 18% last year to 23% in 2006.

Just over half of the students surveyed by NatWest admitted that they were concerned about their debt levels. Sixth formers starting university this year were mainly concerned about money being tight, and financial worries outweighed concerns about studying and exams.

Mark Worthington, Head of NatWest Student and Graduate Banking, said: ‘New students are clearly much more clued up about the financial realities of university than in previous years. Despite the anticipated cost of university rising by 17% on 2005, students are taking it in their stride and cutting back on their spending, meaning they only expect to graduate with 8% more debt than those not paying the increased tuition fees.’

Graduates who find themselves bogged down with various credit card debts along with outstanding loan payments, could consider wrapping multiple payments into one with a debt consolidation loan if they’re a homeowner. Repaying borrowing over a longer term will however increase overall interest charges.

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Monday, November 13, 2006

Millions of Brits selecting wrong credit card

New figures from moneysupermarket.com show that million of Brits are potentially facing big credit card bills each year by selecting the incorrect credit card product. Around ten per cent (three million) of the UK's credit card carrying population – 31.6 million people in total – may seemingly have picked the wrong credit card.

These wrong decisions over a year could be costing consumers in the region of £120 million in interest charges. Among the problems consumers are facing is that two out of five people do not clear their balance in full each month, which leads to increased debt through a negative payment hierarchy.

Rob Kenley, head of credit cards at moneysupermarket.com, said: "Credit cards offer an easy and appealing payment solution, but not being savvy about how to use them can cost consumers a lot of money.

"It is important to work out why you need to use a credit card and in turn, seek out the appropriate one to match your needs. Don't be taken in by the headline rates on offer because the cheapest deals do not automatically signal that the card is right for you. As always, when it comes to financial products a bit of planning and research will help you minimise the risks of paying more than you need to."

Consumers who select the wrong credit card can often find themselves in financial difficulty and debt if they do not manage their repayments properly. A debt consolidation package can aid consumers to tidy up their finances and possibly reduce their monthly repayments. It is however important to remember that repaying borrowing over a longer term will increase overall interest charges.

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Friday, November 10, 2006

Giving up daily pint could add to retirement savings

The latest research from Fidelity International shows that those collecting their A level results in 1998 could have already saved £6,400 towards retirement. Putting just £1.65 a day into retirement savings, less than the cost of a pint of cider, could expect to grow to £50,000 at retirement. This is based on a 25 year old wanting to retire at 60 investing £6,400.

Financial planning is vitally important for today’s undergraduates. The new academic year will see a new FSA backed scheme rolling out to seventeen universities across the UK with the aim to help students better manage their money. Education sessions on confronting debts, controlling money and planning for the future are features of the scheme.

Simon Fraser, president of institutional business at Fidelity International, said ‘Financial planning has never been so critical as when students leave school and embark on their adult lives. While their own retirement will seem like a lifetime away, the earlier students start to save the better. Our research shows the potential value of every pound invested diminishes rapidly as an individual gets older. For example, one pound invested in a pension at age 25 may already have lost as much as half its potential value if the individual waits until they are 39 to contribute.’

Graduates who left university several years ago, and have built up multiple debts including student loans, credit cards and store cards might find that consolidating their debts with a secured homeowner loan could lower their monthly outgoings thus freeing up some money to put towards retirement savings. Nevertheless it should be remembered that repaying borrowing over a longer term increases overall interest charges.

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Wednesday, November 08, 2006

Increasing education cost results in loan rise

Sainsbury’s Bank recently revealed that it is important for parents to shop around for the best deal when looking to fund education fees. Finding a better deal could save hundreds of pounds in interest. Sainsbury’s bank has seen an increase of around 38% in the number of loan applications to cover school fees. This is reinforced by their analysis of Government data which reveals the total UK household expenditure on education fees increased by almost 15% between 2001/02 and 2004/05.

On average, London households spend the most on education fees, spending £577.20. The East Midlands sees the lowest figure of £140.40.

Commenting on the rising cost of education fees, Steven Baillie, loans manager, Sainsbury’s Bank said: ‘Around 620,000 children are now privately educated in schools, which are consistently charging more in fees. The average fee increase in 2005-2006 was 5.7% and since 1999, they have risen by around 50%. Given this, and the fact that more children are being privately educated, we expect to see a growing number of parents taking out loans to help pay for their children’s education. Those parents doing this need to make sure that they shop around and find a competitive loan rate.’

Parents who find that they have built up multiple debts on various credit cards and personal loans to cover off the rising costs of education could consider a debt consolidation loan which might lower monthly repayments. Repaying borrowing over a longer term will however increase overall interest charges.

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Monday, November 06, 2006

Why DIY when you can GSI?

This coming bank holiday, many home improvers are turning away from DIY in favour of GSI or getting someone in. It has been researched by Abbey that although home improvement enthusiasts prefer the perceived cheaper option of DIY, with the majority of DIY projects taking up to 12 months or more, GSI could in the long run be a cheaper option.

The amount of time and money invested in DIY for materials etc… can sometimes prove to be far more costly than to GSI. Abbey research claims that to pay a professional to sand a 25m² would cost around £500 and take around six hours, while to DIY would take approximately twice as long and cost around £420, adding a further £146 when adding in an hourly rate, overall costing an extra £66. With such a varied number of options on offer to fund GSI it is not surprising that the nation’s enthusiasm for DIY may well be on the decline.

Jeff Scott, Head of Abbey Loans has said, “On the whole DIY seems to be a lengthy and stressful affair which can be made much more painless by simply paying to GSI. With a number of options available to fund GSI such as low interest personal loans, why DIY when you can GSI?”

As well as the obvious cost and leisure time matters involved in DIY, Abbey has noted that 10 per cent of their respondents have confirmed that living in a semi building site can take its toll on relationships. Relationship issues and breakdowns have been reported in the past due to the strain of trying to complete projects and living in disruptive circumstances.

As a way of funding GSI and reducing the stress of DIY, those contemplating home improvements may want to consider taking out a secured personal loan. Borrowers will not only enjoy a stress free build but may also add value to their property. Most lenders offer personal secured loans in the region of £10,000 to £100,000, over a term from 5 to 25 years.

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Wednesday, November 01, 2006

Female DIYers take charge over bank holidays

Interesting new research from Halifax Home Insurance reveals that females have shifted the power balance of DIY in their homes. These new termed ‘Handy Mandys’ are comprised of 5.3 million women who believe that they are the best DIYer in the home. Additionally, 2.5 million women who live with a boyfriend or husband take charge of the DIY in their home.

However, men are less ready to accept the new shift in DIY power. 7% of British men who live with girlfriends or wives admit that the women in their lives are more skilled than them with screwdrivers, wrenches and power tools. Only 4% of British men will admit that their female partners do the DIY.

Although the rise in female DIYers is a good thing, female tradespeople still have a long way to go to win the confidence of the British public. An overwhelming two thirds (67%) of British women surveyed said that they would feel more comfortable letting a male tradesperson into their home, rather than a female tradesperson.

Vicky Emmott, senior underwriter at Halifax home insurance, said: “The likes of Linda Barker and Carol Smilie have done a great job inspiring Handy Mandys across the country to get their hands dirty and get involved with DIY. However, this trend is not reflected in support for female tradeswomen. It appears Britons’ still stick with traditional perceptions when it comes to trades people as the vast majority would still prefer to let a man do all the hard work.”

Handy Mandys and Andys who are thinking of doing some DIY this bank holiday, could consider taking out a secured home owner loan to enable them to create their dream property. A new extension could provide the extra space needed to add a bigger kitchen or dining room, and this could be paid for with a secured homeowner loan. Smaller projects such as refitting an existing kitchen or bathroom and redecorating can also be covered with a loan. Repayments on a secured home owner loan can usually be made over a term of 5 to 25 years and home improvers might even find that they add value to their properties with the right home improvements.

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Wednesday, November 29, 2006

Home improvement bill in the region of £48 million.

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Friday, November 24, 2006

Brits lavish money on homes in the run-up to Christmas.

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Tuesday, November 14, 2006

NatWest survey reveals new students expect to pay £33,512 to get a degree

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Monday, November 13, 2006

Millions of Brits selecting wrong credit card

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Friday, November 10, 2006

Giving up daily pint could add to retirement savings

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Wednesday, November 08, 2006

Increasing education cost results in loan rise

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Monday, November 06, 2006

Why DIY when you can GSI?

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Wednesday, November 01, 2006

Female DIYers take charge over bank holidays

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