UK Secured Loans Blog: December 2006

Wednesday, December 27, 2006

New year – new financial resolutions

According to F & C Asset Management in a recent press release, up to a third of Britons are set to make financially related new year resolutions for 2007. The survey of 1,791 adults showed that 43.9% intended to make New Year Resolutions, of which 43.1% said these would be regarding finance.

The survey revealed that women are more likely to make resolutions than their male counterparts. More than half of those surveyed were concerned that they spend too much and don’t save enough. The favoured method for saving was shown to be ISAs with 39% or respondents stating that they would consider using them.

Commenting on the survey, Jason Hollands, Director, Head of Communications at F&C said: ‘Our research shows that the tradition of making New Year resolutions remains strong despite the fact that almost half of those intending to make them – some 45% - readily admit that they are unlikely to keep them beyond January and only 17% are confident that they will stick to their guns throughout 2007.’

One financial resolution that homeowners could decide to make in 2007 is to consolidate their debts. A debt consolidation loan is one of many options to help pay off existing debt and could wrap several monthly repayments into one. Debt consolidation loans are available from a number of lenders and are usually secured on homes. However with a debt consolidation loan, it is important to remember that repaying borrowing over a longer term may increase overall interest charges.

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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Saturday, December 23, 2006

Plastic spending trap

In the run up to Christmas, Alliance & Leicester warned that spending on credit cards could leave consumers up to £1500 out of pocket. As many as 23% of people were reported to have used store cards to help pay towards Christmas spending and over half said that this was simply down to being offered the cards at the point of purchase.

Consumers with total debts of £7500 could save up to £1500 in interest charges by consolidating their debts with a debt consolidation loan according to Alliance & Leicester. Their survey revealed that a quarter of consumers with one some kind of debt would consider consolidating debts into one loan at a cheaper rate, while 31% of those intending to consolidate debts recognised that moving all debts into one loan could reduce the amount paid each month.

Among those planning to consolidate debts with a loan, one in five individuals had a New Year goal to pay off their debts in 2007. Some stated that they needed the discipline of set monthly repayments in order to pay off more than the interest on their debts while 10% said that they were fed up of having credit and store card debts that they weren’t paying off.

Richard Al-Dabbagh, Senior Personal Loans Manager at Alliance & Leicester said ‘Christmas costs can really add up, and some of the offers pushed at us by sales assistants in connection with their store cards can seem really tempting. The real costs of these ‘discounts’, however, may be with you for a long time as interest payments stack up.’

Individuals who have several cards with high balances could consider consolidating these with a secured loan. One of many options to consolidate debt, a secured loan will wrap all monthly payments into one. Secured loans can usually be repaid over 5 to 25 years. It is however important to remember that repaying borrowing over a longer term will increase overall interest charges.

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Thursday, December 21, 2006

When planning home improvements, check buildings and contents insurance

Research carried out by NOP, on behalf of Bradford & Bingley, has shown that over 9 million households are set to carry out home improvements this year. With this in mind, Bradford & Bingley advise home owners to check their buildings and contents insurance after expensive refurbishments.

Stephen Hinbest, head of general insurance product development for Bradford & Bingley comments, “The national passion for DIY shows no signs of slowing. However, while concentrating on whether to add a bedroom, a bathroom or just improving what you already have, many people forget that they must alter their insurance accordingly. With billions expected to be spent across the country this year, there could be some expensive mistakes should people forget to address this.”

Some wanting to carry out home improvements may consider a further advance with their mortgage lender. They will then be informed that they must adjust their insurance cover accordingly. On the other hand, those taking out a personal loan or using savings they have built up may not think about insurance cover.

Hinbest continues, “With the high levels of house price inflation we have witnessed over the last few years, many people are preferring to improve their current home instead of trading up. Indeed, nearly half of those questioned are opting to improve rather than move this year. While adding an extra bedroom or building an extension can be an expensive business, you shouldn’t try and cut costs by scrimping on insurance. Having inadequate cover could end up costing you a whole lot more in the long run!”

“As well as reviewing your level of cover, you should also take the opportunity to review your premiums to see whether you’re getting a good deal. Shopping around or ringing a broker to do the searching for you, could save you a lot of money.”

As an alternative to a further advance on their mortgage, one option individuals could consider, is a personal secured loan to finance their home improvements. Personal secured loans are available from £10,000 to £100,000, and can usually be repaid over a term of 5 to 25 years. From new kitchens and bathrooms to garage conversions and larger scale extensions, a personal secured loan could provide the finances required to make those home improvement dreams a reality.

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Wednesday, December 20, 2006

Personal loans vs. Remortgaging- Which one proves to be cheaper for financing DIY?

Bank holidays have had a long standing tradition of being a day for DIY jobs, and with the coming bank holidays, they are no exception. New research conducted by moneysupermarket.com, the price comparison website, has explored whether taking out a low rate personal loan would be cheaper in the long run than remortgaging when financing DIY.

With such competitive rates available in the market, compared with a remortgage deal, and short repayment terms many homeowners prefer to take out loans.

Using examples found by moneysupermarket.com, for someone wanting to finance £10,000 worth of home improvements, the amount repayable could be £11,486.40 with a competitive personal loan at 5.7%APR over five years. However, by remortgaging homes for the same amount at 5.15% tracker for the term of the mortgage, not only is this loan secured against properties for a longer period, individuals could end up paying £2,888.40 more.

Richard Mason, director of personal loans at price comparison website, moneysupermarket.com said “The bank holiday weekend is a popular time for Brits to go DIY crazy and the money spent over this period is huge. With many homeowners waiting to see what happens to the housing market before selling or buying a home, DIY and home improvements will prove particularly popular again this year.”

Adding the cost of any home improvements to a mortgage can not only spread debt over a longer period, but also prove to be more costly in the long run.

For homeowners looking to finance home improvements, taking out a personal loan at a competitive rate could be one option that would allow homeowners to finance their home improvements. Home improvements including an extension, loft conversion, new kitchen or bathroom could all be completed with a personal loan.

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Tuesday, December 12, 2006

House price increase indicates importance of home improvements

Fresh information from the Land Registry's latest residential property price report has shown the average house price in England and Wales increase to just under £200,000. The report covered the period from April to June 2006 and revealed the average price of a property in England and Wales was £199,184 – an annual increase of 7.71% and more than the 5.43% increase for the same period in the previous year.

And it is not just house prices which are increasing as the level of property sales is rising too. Sales of houses in the Greater London area increased by 26.69% while sales across England and Wales were up by 23.76% compared to the same period in the previous year.

In total, the volume of sales between April and June in England and Wales rose from 216,890 in 2005 to 268,430 for the corresponding period in 2006 – Greater London saw sales of 26,249 for the same period in 2005 compared to 33,254 in 2006.

With property prices surging higher than the previous year and the volume of sales in England and Wales and Greater London showing healthy increases, many homeowners will be tempted to sell their properties. As ensuring one receives the top market value for a property is a priority for most homeowners, many opt to carry out important home improvements before the selling process. A secured homeowner loan could allow property owners to undertake important improvements to their home – such as a garden revamp, or redecorating which could add important market value.

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Monday, December 11, 2006

Britain: a nation of bodgers.

According to research from National Savings and Investments (NS&I), nearly (18%) one in five Britons describe themselves as bodgers, who are prone to DIY disasters. Surprisingly of the 18%, only 3% of DIYers call in a professional to repair their DIY disasters.

A lack of preparation seems to be the main cause of DIY mishaps. A third of DIYers have said, according to the research undertaken, that they did nothing to prepare for a job and just dove in. Britons aged 35-54 were the most likely to jump straight into jobs, whereas those aged 25-34 were less impulsive with over 50% more likely to call on others for advice and help.

John Prout, sales director at National Savings and Investments, said, “Whoever’s undertaking a DIY task could save themselves time and money by researching the task ahead of them so they’re able to get it right. And this way they can help avoid the indignity and financial sting of having to call in a professional to put right their bodges.”

With the estimated annual bill for DIY mishaps well into the millions of pounds, homeowners could potentially benefit from taking out a secured loan. With competitive rates and repayment terms to suit you from 5 to 25 years, homeowners could avoid the costly errors and reap the rewards of a newly decorated or refurbished house.

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Friday, December 08, 2006

Parents are called upon for DIY jobs:

Research conducted by Halifax Home Insurance show that 63% of Brits have asked their parents to help out with their home improvements. It is estimated that parents have provided a huge £14 billion worth of labour over the past five years. Part of the reason for this is the new generation of Don’t Do It Yourselves.

It has been researched that more than half (53%) of 18-35 year olds do not possess the necessary skills to carry out simple tasks for themselves. Of this age group, only 31% of those asked in the survey conducted by Halifax rated their skills and knowledge as being better than their parents, compared to 42% of 35-54 year olds and 63% of over 55s.

With the next generation of DDiYers or Don’t Do It Yourselves, it seems that the basic skills required to carry out DIY will steadily decline as younger generations no longer have the free time. This is supported by the research conducted by Halifax which shows that almost half (43%) of Brits said that they had asked parents for help because they didn’t have the skills themselves and 36% because they didn’t have the time.

The research also showed that the most popular parental DIY tasks are painting and wallpapering followed by gardening and general DIY. Those in the Midlands are the most likely to call for their parents help, with 72% of the population having done so. And the most likely sex to ask a parent for help were women with 68% compared to 57% of men having seeked parental help.

Martyn Foulds, senior claims manager at Halifax Home Insurance, said “It’s great that parents are so keen to help their offspring increase the value of their homes. It’s no secret that, if done well, even basic cosmetic tasks such as redecorating can add significant value to a property.”

Those wishing to finance home improvements or essential DIY, could always look at a secured homeowner loan as one option. Secured homeowner loans can be used for a wealth of home improvements, from extensions to modernising appliances found in kitchens or bathrooms. Repayments on a secured homeowner loan can usually be made over a term of 5 to 25 years and home improvers may even find that they add value to their properties with the right home improvements.

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Wednesday, December 06, 2006

Women are the biggest spenders when it comes to DIY according to Sainsbury’s Bank

Research conducted by the Sainsbury’s Bank Home Improvement Index show that women will spend over £29 billion on home improvements, which works out to be £1.76 billion more than men.

Over half of those conducting home improvements have stated that the reason for doing so was to make their homes more comfortable to live in. 24% said that they made the home improvements as necessary repairs and only 10% said that DIY was carried out to make more space. A considerable 335,000 people will make improvements to their homes to increase their value before selling.

Over the next six months people have estimated they’ll spend £57 billion will be spent on home improvements, compared to the £80 billion worth of home improvements planned during the period of June 2004 and December 2004, this is a substantial decrease in anticipated spend.

The most popular home improvement activities to be carried out over the next six months are painting and decorating with 4.4 million people planning to do so. Followed behind this, are 2.5 3 million people who plan to have new kitchens fitted, and 2.4 million people who intend to replace their bathrooms. As well as these somewhat small scale projects, the Sainsbury’s Bank Home Improvement Index has found that over a million people plan to carry out larger projects. 792,000 people intend to build extensions, while 310,000 houses could have their loft converted.

A substantial amount of the money used to finance these home improvements has been found to originate from personal loans. In total, £13.9 billion of planned home improvement expenditure will be financed through credit and borrowing money over the next 6 months.

By taking out a secured home improvement loan, home owners could add value to their properties through adding an extension or refurbishing kitchens or bathrooms. Subject to status, a home improvement loan can be taken out in the region of £10,000 to £100,000 repayable over a term to suit you from 5 to 25 years.

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Monday, December 04, 2006

Students underestimating post-university debt

Although many students are this summer eagerly awaiting their A Level results with plans to go to university, huge numbers are underestimating the levels of debt that are involved in doing so, new research has found. The Association of Investment Trust Companies (AITC) has unveiled figures showing how many university students are loaded with debt upon leaving.

There seems to be a considerable gulf between the amounts of debt which parents expect their child to graduate with compared to the reality. It seems parents expect on average, their offspring would graduate with a debt of £7,080 when in fact the reality is almost twice as much at £13,500.

The largest worry for parents and students alike before university are financial ones with 55 per cent of 16-19 year olds concerned by this compared to 45 per cent of parents. Debt registered as the biggest single worry for both groups with 28 per cent of parents and 37 per cent of 16-19 year olds citing this as their main concern.

Annabel Brodie-Smith, Communications Director at the AITC, said: "Soon students up and down the country will be preparing to start their university courses in the autumn. However, it's concerning that so few would be students and their families really comprehend the financial implications of going to university. Many young people go to university to enjoy some of the best years of their life but on graduation will find themselves struggling to repay their debt."

With so many students leaving university laden with debt, many more young adults are experiencing financial problems. A debt consolidation package can provide the opportunity for consumers to re-order their finances and arrange their repayments into a manageable sum. A secured loan could be one way parents can help out their children going to university, allowing them to start their careers after university debt free.

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Friday, December 01, 2006

Shelling out on DIY could leave you out of pocket

As Easter weekend approaches once more, it has been revealed by research conducted by Alliance & Leicester Personal Loan, that one in three people will be doing some DIY improvements. Over three quarters of homeowners have already made one major improvement to their current home, and just over one fifth have made more than five major changes while they’ve lived in their home.

In the top 10 most popular home improvements among British homeowners, decorating seems top of the list with 86%, followed closely by fitting new carpets.

Alliance & Leicester does however warn customers of falling into the trap of ‘point of sale’ credit deals, where some companies are known to charge 20% APR for double glazing and some major kitchen retailers around15% APR. Taking this type of credit could potentially mean overpaying by up to £4,808.

Claire Alvey, Personal Loans Manager for Alliance & Leicester commented: “Our obsession with DIY and home improvements is obviously not waning. Yet, despite the efforts we put into making our homes stylish and picking out the right colour samples, we still aren’t putting the same effort into getting a good finance deal.”

Taking out a home improvement loan could help finance Easter weekend DIY jobs. As 51% of homeowners do most DIY themselves to keep costs down, a secured loan could help buy better materials and tools. However, a secured loan could also allow homeowners to bring in a professional and ensure that the job is done without the hassle of doing it yourself, limiting stress and disruption. Available from £10,000 to £100,000, and repayable over a term to suit you, a home improvement loan could be just the thing to improve your home and may even add value to your property if done correctly.

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Wednesday, December 27, 2006

New year – new financial resolutions

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Saturday, December 23, 2006

Plastic spending trap

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Thursday, December 21, 2006

When planning home improvements, check buildings and contents insurance

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Wednesday, December 20, 2006

Personal loans vs. Remortgaging- Which one proves to be cheaper for financing DIY?

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Tuesday, December 12, 2006

House price increase indicates importance of home improvements

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Monday, December 11, 2006

Britain: a nation of bodgers.

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Friday, December 08, 2006

Parents are called upon for DIY jobs:

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Wednesday, December 06, 2006

Women are the biggest spenders when it comes to DIY according to Sainsbury’s Bank

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Monday, December 04, 2006

Students underestimating post-university debt

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Friday, December 01, 2006

Shelling out on DIY could leave you out of pocket

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