UK Secured Loans Blog: May 2007

Thursday, May 31, 2007

Wedding bells should ring insurance alarm bells says NFU Mutual

With summer just around the corner, the time for weddings has also arrived. While a wedding is a happy time not only for the bride and groom but also for family and friends, rural insurer NFU Mutual is reminding newlyweds to review their home contents cover following the big day.

David Oram, Personal Insurance Underwriting Manager at NFU Mutual says, “There is a great deal of excitement in the run up to a wedding and naturally, the practicalities of checking your home insurance can sometimes be forgotten. Although NFU Mutual offers newlyweds the luxury of a temporary automatic increase, once the honeymoon period is over, we urge couples to review their levels of cover.”

With the ever expanding gift list market growing, with an estimated worth of £267.2m in 2006, and many couples receiving a gift list full of presents, less than one in ten married people checked their level of cover following tying the knot.

Furthermore, the study found that of those who have ever been married, almost half did not review their home contents insurance after the big day and nearly a third simply do not recall whether they checked their cover after their nuptials.

With gifts ranging from £500 plasma screen televisions to expensive crystal glasses and Wedgwood dinner services running into the thousands of pounds on wedding gift lists, NFU Mutual’s concern over checking insurance cover is valid.

Getting married these days can be expensive, not only do couples have to think about the venue but also the reception, photographs and the all important wedding dress. These expenses can add up and even a smaller ceremony can be costly. To assist these costs homeowners could look at a secured loan as one of the many options available. A secured wedding loan could help finance insurance for the day and also could be used to help finance a honeymoon. Personal secured loans can be made payable over a term to suit the borrower from 5 to 25 years. Whether the secured loan is for financing your own wedding or your children’s, these funds could help make the day one to remember. Parents using a secured loan to finance their children’s weddings, could also consider using some funds to finance home improvements once their children have flown the nest.

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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Tuesday, May 29, 2007

Homeowners look for savings as base rates rise

As a result of the base rate rise, uSwitch.com has found that consumers could offset the entire base rate rise by switching energy providers.

Research has found that a monthly payment on a £150,000 repayment mortgage is set to rise by £22 per month. By switching energy providers, homeowners could save up to £27 per month. Therefore, a homeowner could enjoy an annual saving of £325 just by switching energy providers, taking into account that at least 16% of customers who switched gas and electricity with uSwitch.com in 2006 saved at least £325 a year.

Following the recent 0.25% base rate rise, Ann Robinson, Director of Consumer Policy at uSwitch.com, the independent online comparison and switching service, says:

“Today’s hike in the base rate will see millions of homeowners tightening their belts to alleviate the squeeze on their wallets. One of the easiest ways they can do this is by reducing the basic cost of running their homes. Energy bills are the third biggest household expense after mortgages and council tax. A homeowner who has never switched energy providers before has got the potential to unlock ‘wasted’ cash, save up to £325 per annum or £27 a month and offset all of the latest interest rate rise. A base rate rise and the impact on mortgage payments are entirely out of people’s control, however, simple changes to save money on energy bills are not. Quick wins such as paying by direct debit, switching to dual fuel and taking up an online tariff could chip substantial amounts off the average energy bill. For those affected by today’s rate rise this could be the difference between seeing a dent or a hole in their household budget.”

An example of a scenario that uSwitch.com created following the 0.25% rise was that if a homeowner with a repayment mortgage of £150,000 repaid over a term of 25 years at 5.25% they would be paying an extra £222 each month after the rate rises by 0.25%. By switching energy providers and ensuring they are on the most competitive tariff, they could see a saving of up to £27 per month that is a net gain of £5.

If after changing energy providers, homeowners are still finding it difficult to make payments on their monthly outgoings including multiple credit card repayments as a result of the base rate rise, they could look at a secured loan as one of the many options available to consolidate existing debt. A secured loan could allow homeowners to pay off existing debt, freeing up a little more of their expendable income to cover other financial commitments including utility bills and mortgages. Made payable over a term to suit the borrower from 5 to 25 years, a personal secured loan could potentially reduce multiple monthly payments on credit cards with high APRs. By consolidating existing debt into one straightforward payment, a secured loan could allow homeowners to plan ahead, knowing when and how much their repayments will be each month. Homeowners should remember that repaying over a longer term will increase overall interest charges.

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17% of the cost of second hand cars financed with loans

New research conducted by Sainsbury’s Bank has found that around 5.48 million people plan to purchase a second hand car in the period between March and the end of August 2007. The estimated intended spend on these vehicle purchases according to Sainsbury’s Bank is £4,056 each or collectively as much as £22.23 billion. Although this is a large amount, it is a 14% decrease from the amount spent in the previous six month period of September 2006 to February 2007 which was £25.92 billion. The previous average amount that people were intending to spend on a second hand car was £5,018 almost £1,000 more than today’s figure.

As people are intending to spend less on second hand vehicles, Sainsbury’s Bank urges people planning to sell their cars on the second hand market to undertake a proper valuation to ensure they are getting a good deal. One way in which car owners can do this is by taking advantage of free Valuation Tools available on their website. By entering details such as the make, model and mileage of a motorist’s car, the estimated value of a vehicle can easily be calculated.

Steven Baillie, Sainsbury’s loans manager, said: “Sellers need to make sure they know the market value of a vehicle to ensure they get a good deal when they come to sell their existing car, or indeed come to buy a new one. Our findings show that people are anticipating spending less on their second-hand car purchase compared with six months ago, so it’s important that they remember to haggle when negotiating any car purchase to secure the best deal.

“Despite the fact that haggling can save the buyer hundreds or even thousands of pounds, many of us are reluctant to do this. Our findings reveal that over half of people who are intending to buy a second-hand car in the next six months state they do not plan to haggle or will only haggle slightly.”

Sainsbury’s Bank has discovered that around 17% of the cost of the second-hand cars purchased over the next six months will be financed by personal loans. A personal loan, one of the many financial options available for homeowners, could not only help finance the purchase of a car but also additional costs that many motorists forget like MOT’s and car insurance. Whether homeowners choose to use their secured loan to purchase a brand new car or a second hand car, the extra finances could ensure that motorists are satisfied with their purchase. Growing families could benefit from a larger vehicle whereas couples may prefer a smaller compact car perfect for city hopping. Eco friendly motorists could use their personal loan to buy a hybrid car which combines a petrol and electric engine which benefits the environment. A personal loan is made payable over a term to suit the borrower from 5 to 25 years

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Monday, May 28, 2007

Increase in base rate could lead to homeowners refinancing

The last base rate rise has left a quarter of mortgage holders struggling with repayments or having to sell or remortgage. According to price comparison site, Moneysupermarket.com, millions of homeowners will be forced to remortgage if rates increase once more. This could lead to more than seven million people being pushed into remortgaging as a rate rise would lead to payments increasing by up to £100 per month.

According to new research from moneysupermarket.com, 2.6 million Brits say they will have to remortgage if their payments rose by up to £50 per month, if the mortgage repayments increased by up to £150 per month, only 12 per cent of borrowers would be prepared, with half of all homeowners being forced to find a better deal.

Louise Cuming, head of mortgages at moneysupermarket.com, said: “The looming rate rise is of grave concern. We feel it could even be a half per cent rise which, according to the survey results will drive an alarming number of people into financial difficulty. Homeowners on a £150,000 interest-only tracker mortgage face additional costs of £750 per year, or £62.50 per month, for every half per cent that interest rates rise.

Just over half of people with a mortgage were affected by the last base rate rise in January. Of those affected, 15% are only just coping financially with their current lifestyle and a further 9% are struggling so much that they are already making sacrifices. 1% of homeowners have had to sell or remortgage their home.

Louise Cuming added: “It is alarming that people are still not budgeting for the increased mortgage repayments a further rate rise will bring. With so many saying they will be forced to remortgage if their monthly payments increase it is staggering more borrowers have not yet factored this in. Even more worrying is that people who are relying on being able to remortgage if their repayments rise may not be able to afford to do so due to the early redemption charges in place on many products. These people need to review their finances and budgeting immediately.”

Homeowners who are planning to remortgage their property as a result of base rate rises could consider a secured loan as an alternative. A secured loan could be used to rearrange existing credit in the form of credit cards, store cards and any existing personal loans. This could potentially lower monthly repayments freeing up a little extra for rising mortgage repayments. By putting all existing debt into one place with a secured debt consolidation loan, homeowners will know the exact day and amount repayment will be taken from their account each month. If considering a secured loan to consolidate debt, it is however important to remember that repaying borrowing over a longer term will increase overall interest charges.

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Friday, May 25, 2007

Til debt do us part

AA Legal Services recently commissioned a survey among 2,600 elderly parents and adult children to delve into attitudes towards inheritance. Their research reveals that seven in ten young Brits most fear inheriting huge debts when their parents pass away.

Recent changes to inheritance tax lack appeal for millions of young homeowners. Currently young people are being offered up to six times their salary to get on the property ladder, and many fear their elderly parents will spend their inheritance during their twilight years leaving their children with a legacy of debt when they die.

Concerns were expressed by more than four in five people under 35 about what may be discovered in parent’s wills. One in three were concerned about the prospect of sibling rivalry where they feared that any wealth would not be shared equally between brothers and sisters. This may be as a result of care costs or equity release schemes. Some of the children’s fears proved to be well founded. Examples of things that would irritate children would be money being left to a charity or to a step parent (15% and 10% respectively) but were plans that parents had actually made.

In some instances, poor family communication is worsening the problem. Around three in ten parents over the age of 55 (28%) have not yet told their children about their will – and half of these have no intention of sharing the contents of their will before they die (14%).

AA Legal Services have called the fact that few adult children have actually made a will themselves alarming. Only one in five couples with children under the age of 11 say they have made a will (20%).

James Molloy, Head of AA Legal Services says: “Recent concern over the cost of care homes, equity release schemes and growing consumer debt among the elderly are changing the way many young people view the concept of inheritance. As young families take on bigger and bigger debts to get a foot on the property ladder, few are banking on a future inheritance to help clear the mortgage.

“It is also alarming that so few young couples have made a will. On buying a home it should be one of the first tasks that is undertaken, but our research is telling us that writing a will is usually lost in the excitement of choosing new carpets and opening the tin of magnolia paint.”

Homeowners who are concerned about mounting debt and would rather not leave a mountain of unpaid bills for their offspring could look at a consolidation loan as an option to pay off their debts while they are still young. Debt consolidation loans move all existing debt into one straightforward monthly payment. Multiple store and credit card payments will be collected and paid at the same time every month with a debt consolidation loan, so homeowners can plan ahead with confidence. A debt consolidation loan is paid over a term to suit the borrower from 5 to 25 years. Homeowners should remember that repaying over a longer term will increase overall interest charges.

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Thursday, May 24, 2007

British homeowners spend £54,400 moving home in a lifetime

Research conducted by Abbey Mortgages has shown that the average Brit moves home between 3 or 4 times in a lifetime. Abbey Mortgages has found that the average cost of moving home in the UK is £16,000. So, if a homeowner moves on average 3.4 times in a lifetime this calculates to more than 2 years salary that is £54,400 spent moving home, excluding actual property prices. This amount would be enough to purchase a two bedroom Finca in the Costa del Sol or a brand new one bedroom in the centre of Bordeaux.
Nici Audhlam-Gardiner, Head of Mortgages at Abbey, said: “It’s no secret that moving home is an expensive business – in fact, I’m sure it’s one of the reasons why people don’t move that often. But it’s astounding when you consider just how much it amounts to over a lifetime.
“With the average Briton expecting to spend over two years annual average salary just meeting the costs of professional fees and stamp duty of their 3 or 4 moves, homeowners clearly need all the help they can get. By removing upfront costs including legal fees, Abbey’s new mortgage is especially designed to help movers start life with more cash in their pockets.”
The total spend in 2006 was £28 billion on moving home. This comes as no surprise when Abbey looked at the fees charged by lawyers, estate agents, financial advisors, removal firms and stamp duty. Homeowners also have to take into account the money used to bring a property into a ‘saleable condition’.

Those thinking of moving home could look at improving their current property as an alternative. A home improvement loan could allow homeowners to add value to their current property though a range of options. Modernizing a kitchen, by refurbishing units and maybe including a large range, a popular addition for those looking to improve their current cooking facilities, could add instant value to a property. One of many options to fund home improvements, a secured loan could allow for a mountain of work to be done, simple redecorating could be done by professionals and everything down to new lighting fixtures to create a perfect atmosphere for entertaining guests could be financed through a home improvement loan. Made payable over a term to suit the borrower from 5 to 25 years, a home improvement loan could help finance a number of possibilities from large projects such as an extension for growing families to smaller redecorations.

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Wednesday, May 23, 2007

19.5 million Men feel more like Jamie Oliver’s than Handy Andy’s says Prudential

Prudential Home Insurance has revealed through new research that nearly half of men in the UK are more comfortable cooking a meal than carrying out basic home improvements. Even though this may be the case, the May bank holiday will have seen thousands of couples invading local hardware stores before setting out on the latest DIY tasks.

It seems that the profile and lifestyle of modern men has changed so much that chores that would have been carried out without a second thought a few years ago are now carried out with a lack of confidence. The insurer said only a quarter (23 per cent) of British men felt confident putting up shelves and only 14 per cent would be able to move a light switch or plug. Three per cent of men admitted they would not like to do any household chores – be they domestic or DIY.

Phil Southgate, media relations manager at Prudential Home Insurance said: “Celebrity chefs such as Jamie Oliver and Gordon Ramsey have certainly played their part in spurring modern men to have a go in the kitchen compared to their DIY counterparts.

Compared with the over 60s, who were three times more confident with moving a light switch or changing a plug, today’s younger generation (18-24 year olds) are most likely to own no tools for house improvement at all and when it comes to electrical wiring, only 7% of 25-34 year olds were confident to do so.

Southgate continues: “Spring bank holidays often entice men to dust down their toolkits and engage with a bit of home improvement. However, as very few men profess to being confident with DIY tasks, there are likely to be a number of wannabe Jamie Oliver’s well out of their comfort zone and at risk of doing a botch job this forthcoming May bank holiday.

“Whilst it may be fun to give it a go, what is worrying about this is that as many as eleven million people in Britain would potentially be out of pocket as they have no home contents insurance in the event of an accident or botched job. Furthermore, we would advise those thinking about carrying out any DIY tasks over the May bank holiday, with or without a qualified workman, to speak to their insurer first and keep them informed of any major redevelopments - this will almost certainly help in case of a claim.”

Those wishing to carry out home improvements or are looking to fund a builder to come into their home, a home improvement loan could be one of the many options available. By hiring professionals to carry out home improvements whether it’s a simple case of relaying a floor or a larger task of extending a room or converting a loft or basement, DIY disasters could be avoided. A home improvement loan could be paid over a term to suit the borrower from 5 to 25 years. Work carried out to a high standard with a home improvement loan, could also potentially add value to homeowners properties.

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Decorating disasters surge with Bank Holiday DIY

In preparation of thousands of Brits dedicating another Bank Holiday to DIY, Lloyds TSB Insurance predicted a 60% surge in calls as a result of not taking care with saws and step ladders.
Records from Lloyds TSB Insurance show that year after year, Bank Holidays see a rise in the number of reports of accidental damage. Figures for 2006 show that the number of calls shot up by 56 per cent following the May Bank Holiday - and this year the number could rise by almost two thirds (60 per cent).
With an increased number of calls, there was a noticeable rise in the number of claims. Following the Bank Holiday weekend, accidental damage claims for May 2006 showed a 20 per cent increase on the previous month.
Examples of DIY disaster claims from haphazard home improvers on recent Bank Holidays have included: a toddler who decided to roll paint onto the newly laid living room carpet, and a man who fell through his ceiling while trying to repair floorboards.
Phil Loney, managing director, Lloyds TSB Insurance, said: "May Day Bank Holiday can spell disaster for DIYers. We're urging anyone who's getting out a paintbrush, drill or stepladder to be extremely careful. Unfortunately, sometimes accidents do happen and it's then that having the right insurance cover can prove invaluable."
For those essential DIY jobs over the Bank Holiday weekend, many homeowners could benefit from taking out a home improvement loan, one of the many options available to fund DIY projects. A personal loan could help pay for professionals to come and carry out a number of home improvements ranging from a new kitchen to re-tiling a bathroom, without the worry of dangerous DIY mishaps. Even hiring a painter to touch up walls around the house could be funded with a secured loan, reducing the possibility of any accidents occurring to homeowners themselves. Bigger projects that can be paid for with a home improvement loan are extensions, adding conservatories and loft conversions. A home improvement can be made payable over a term to suit you from 5 to 25 years.

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Tuesday, May 22, 2007

As landlords sell, first time buyers benefit

According to Alliance & Leicester Mortgages, one in ten landlords have sold a letting property in the last two years and a quarter have made over 30% returns on their letting property.

It seems that first time buyers have been taking advantage of landlords who have sold property in the last two years. Alliance & Leicester’s research has shown that although there is the ongoing concern that the increase in buying-to-let is pushing first time buyers out of the market, 42% of new homeowners bought landlord-owner properties. Nearly a third of these properties have been sold to existing or new landlords.

Alliance & Leicester Mortgages research shows that overall, one in ten (10%) landlords sold a letting property in the last two years.

Jeremy Claridge, Head of Specialist Mortgages at Alliance & Leicester comments: “It is heartening to see that first time buyers are benefiting the most from the sale of buy-to-let properties with nearly half having bought from a landlord. With many believing the boom in buy-to-let has priced first time buyers out of the property market, the research highlights it is not all ‘doom and gloom’ for first time buyers. Instead, they are the group gaining the most. The research paints an optimistic view of the buy-to-let market with all but two per cent of landlords, reporting they have achieved capital growth on their properties when sold in the last two years. While this upbeat picture might be true of times now, recent figures have shown that house prices are slowing so landlords would do well to ensure they plan carefully for all eventualities.”

The average ownership tenure of the landlords, who sold in the last two years, was three and a half years. A quarter of landlords made a return of more than 30% on their letting property in this time. Only two per cent of these landlords reported a loss on their property.

Those first time buyers taking advantage of landlords selling on their properties, might find that it is in need of home improvements or repairs. With property value potentially increasing from day one, first time buyers could consider a secured loan to finance vital improvements. Decorating or painting a room could add instant character and make new homeowners feel right at home in their new property. New furniture or a large project such as an extension for a growing family could be financed with a secured loan. A home improvement loan can be made payable over a term to suit the borrower from 5 to 25 years. Secured home improvement loans may also be used for more adventurous projects such as extending, loft conversions or adding a conservatory.

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Monday, May 21, 2007

3.5 million Mums on their way back to work says Scottish Widows

Scottish Widows have recently revealed that almost half of UK households, 11 million homes, depend on more than one salary to cover the bills and maintain an acceptable standard of living. Research also found that the level of debt increased with children. The average household with 2 children had on average £100,000 of debts compared with a childless household that had £80,000 of debt.

Commenting on the findings, Scottish Widows’ interim protection market director Richard Jones said: “Our report reveals that the mixture of relatively low interest rates and high job security means borrowing has been an attractive option in recent years. The problem is that servicing this debt eats into our take home pay and exposes us to financial hardship should we be unable to work. Low inflation also means debts are eroded more slowly over time – again increasing the need for financial protection.”

Figures show that of the 7.1 million UK households with dependent children there are 3.5 million that are reliant on two salaries. This dependency on two salaries may be as a result of a rise in consumer credit. The report shows 47% of Brits have a mortgage, 60% have secured or unsecured loans, overdrafts or finance agreements and a similar number of 63% have credit card or store card debt. As expected, those with children have higher levels of debt on both loans and credit cards than those without.

Richard Jones continued: “This reliance on two incomes to buy and run the family home means millions of households are effectively doubling the risk of financial hardship should one of bread winners become unable to work.”

The report published by Scottish Widows also shows that many do not have much in savings tucked away for a rainy day. Around 27% have no savings at all to live off if circumstances change while a further 25% have less than £3,000. This amount would last less than three months, which means that half of all UK household would struggle if a problem arose.

With growing families and a greater dependency on two salaries many homeowners may be finding themselves with multiple credit and store cards that they would like to clear. Homeowners could consider consolidating debts with a secured loan. Also, a debt consolidation loan, one of the many options available, could put all your debt into one place, making it much easier to keep an eye on your monthly money outgoings. Secured loans can be paid over a term to suit the borrower from 5 to 25 years. Homeowners should remember that repaying over a longer term may increase overall interest charges.

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Service to help used car buyers

Last May a service called AutoCheck was launched by Experian, was introduced to help make the used car market a safer environment for consumers.

The service changed the way in which customers buy used cars, making it simpler and less expensive for them to check the status of up to five potential purchases over a period of 60 days at an earlier stage of their buying cycle, before traveling to see them.

These checks give relevant information that all new car owners need to know especially as they could materially affect the car’s value. They include a vehicle’s history, including if it has outstanding finance, has been recorded as an insurance write-off, is reported as stolen or may have been clocked.

Kirk Fletcher, Managing Director of Experian’s Automotive division, said: “There are 23 possible pieces of information associated with any given vehicle, many of which can’t be seen and could affect the consumer’s decision to buy.

“Our research shows that one in three vehicles in the UK has adverse data, so the chances of researching, let alone buying, a car with a hidden history are high. And, with the recent rise in inflation, more bad debt is predicted, so car buyers need to spend their money wisely.

“A consumer should always find out as much as they can about a used car before buying it, whether by looking online for reviews and information about certain makes and models or through the opinions of friends. We want to ensure that looking into the ‘status’ of a used car becomes an essential and natural part of this process. AutoCheck was developed to make it easier and cheaper for car buyers to do this and find out before parting with their cash whether there is a reason why they should walk away from the sale.

Homeowners looking to finance the purchase of a new car, could look at taking out a car loan. A secured car loan is one of the many options available for homeowners looking for a new set of wheels. Growing families could look at buying a larger vehicle with a secured car loan making those long journeys to see grandparents and family much more comfortable. Newly qualified drivers who are looking for small, compact cars could finance their purchase with a car loan. With the summer coming, a new convertible sports car, could also be financed with a secured loan. Secured loans can be made payable over a term to suit the borrower from 5 to 25 years.

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Friday, May 18, 2007

6 million Brits not worried about debts below £15,000

According to the latest Personal Credit Index survey from CreditExpert.co.uk, the online credit report monitoring service form Experian, has found that approximately 6 million Brits would only start worrying about their debts if they passed £15,000. It seems that growing interest rises are having no effect on borrowers’ confidence as people are becoming more comfortable than ever with high levels of debt.

A further 1 in 20 would only be concerned with their level of debt if it exceeded £50,000. Even though there is a growing acceptance of debt it is still considered a major social taboo for many. One in five cited bankruptcy as their most socially embarrassing life event, and one in ten cited getting into debt. It seems that financial situations are considered far more embarrassing for Brits than being involved in an illegal crime involving drugs or getting divorced which feature further down the list.

Findings from CreditExpert’s Personal Credit Index show consumer confidence reaching an annual high with a three point rise in the last quarter to 100. This figure was last seen in April 2006. Seasonal changes could be accounted for this rise in confidence, as longer days and two council-tax free months could leave many homeowners in a peaceful state of mind.

Jim Hodgkins, Managing Director of CreditExpert.co.uk says “The fact that so many Brits are happy with unsecured borrowing of at least £15,000 may seem shocking on first sight, but the ‘credit comfy’ generation seems to have become anaesthetized to the real implications of mounting debt. While many still see big debt as socially unthinkable, the reality is that an increasing number are finding it difficult to gauge when debt tips over to being unmanageable. With the current rise in interest rates, many will find that debt they blithely ignored is in danger of spiraling out of control.”

Homeowners who are finding that their debt is escalating out of control, with multiple monthly credit and store card payments could benefit from taking out a debt consolidation loan. One of many options available to consolidate debt, a debt consolidation loan will move all existing debt into one straightforward, convenient monthly payment, made payable over a term to suit the borrower from 5 to 25 years. With a debt consolidation loan, knowing when your monthly payment will be leaving your bank will allow for homeowners to plan ahead safe in the knowledge that they will not be piling up late fees. Homeowners taking out a debt consolidation loan should realise that repaying borrowing over a longer term may increase overall interest charges.

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Driving costs motorists £51billion a year

Research conducted by leading car company Zurich has found that British motorists are stacking up over £51 billion pounds a year just to keep their vehicles road worthy.

Mark Searless, chief marketing officer at Zurich Insurance says, “The cost of motoring has risen dramatically over the past few years, putting drivers under increasing financial pressure. The most worrying findings from our research are those that show that some drivers are risking their own and others’ safety in a bid to save money. We need to change those attitudes and remember that it is a legal requirement to have both a valid MOT and insurance. Everyone pays an extra £30 per year on their premium as a result of accidents that are caused by those with no insurance. With other costs, it’s vital that people budget carefully, especially when it comes to vehicle maintenance. We all have a duty to make sure our roads are kept as safe as possible.”

The study conducted by Zurich shows that UK car owners spend an annual average of £1,776.62 each on day to day costs. These costs include vehicle tax, fuel, parking and maintenance. More than nine in ten motorists spoken to during the research believed that car costs had increased over the last five years and for a third of these motorists by over £400 every year. This increase has meant careful budgeting, 74% admit that rising costs have meant that they are forced to budget more carefully.

These rising costs mean that many drivers (a fifth), in a bid to reduce their increasing motoring bill, admit to delaying or avoiding paying their motoring costs all together. These motoring costs include insurance, road tax and parking fines. Of these drivers, seven in ten have tried to cut costs further by putting off paying for repairs and maintenance. Even though MOT and vehicle taxes are legal requirements, it has not stopped some motorists from delaying payments, 32% put off paying vehicle tax and 30% on paying for an MOT. Also while 22% have admitted to paying for their car insurance a little later, 3% admit to driving without insurance altogether. Although with this cost cutting, it seems that few UK motorists are likely to make the ultimate sacrifice and ditch their cars altogether. Nearly three quarters of motorists surveyed by Zurich said that they could not live without their car, and just 7% would consider selling their main car if costs continue to rise.

For motorists who are finding that their credit is running away with the rising car costs, a secured loan could be one of the many options to consider. A debt consolidation loan could help reign in all those monthly credit card payments into one straightforward amount payable over a term to suit the borrower from 5 to 25 years. A secured loan could be used to pay those all important motoring costs like an MOT or vehicle tax. Motoring repairs and maintenance could also be paid for using a personal loan. If using a secured loan to consolidate debt, homeowners should remember that repaying borrowing over a longer term will increase overall interest charges.

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Thursday, May 17, 2007

Moving home costs the UK economy over £500m every year

With the imminent introduction of Home Information Packs (HIPs) in December, the Association of Home Information Pack Providers (AHIPP) believes that they could reduce the impact of stress considerably for both the consumer and the economy.

Mike Ockenden Director General, AHIPP said: “The high levels of transaction failure and the extended period of uncertainty between offer and exchange of contracts in the current home buying and selling process is one of the most stressful times that consumers will endure in their lifetime.

“Several studies have shown that the stress of moving home ranks only behind ill health, relationship breakdown and bereavement yet, incredibly we have simply learnt to accept this in the UK - unlike in most European and Western countries, where this is far from the norm.”

Moving home can undoubtedly be a stressful time for most homeowners, not only before but after. Many newly moved homeowners realise after moving in that their new home could do with a spot of home improvements. A secured personal loan could be one of the many options available to finance home improvements. A homeowner loan could help finance countless projects whether they be big or small. Making the most of newly acquired space for a growing family could mean a loft conversion or even a room extension, made payable by a home improvement loan. With a term to suit every homeowner, from 5 to 25 years, a secured loan could provide the funds needed to carry out the all important home improvement projects.

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March housing market – calm before the storm says NAEA

Figures released by The National Association of Estate Agents (NAEA) have shown that the housing market is currently in a state of calm.

Compared to the same period last year, the market was seasonal in March. Buyers, sellers and completed house sales were all at a similar level. Figures collected by the NAEA reflect the notion that March is traditionally a busier time in estate agencies than February, with a slight upturn in activity from last month.

Those who are first time buyers have managed to maintain their improved market share from February and are currently up on the levels reported in March 2006 despite another expected base rate rise.

As a result of the traditionally busy spring period, the number of houses for sale in March increased by 8.7% from the figures reported in February. NAEA members across the country reported an average of 62 properties for sale in March, relatively close to the 61 recorded in last year in March.

Research conducted by the NAEA has found that in March there has been an increase of 11.6% from February in the number of people looking to buy a property. Looking at the same period from last year, research has shown a 3.7% rise. It seems however that demand continues to outstrip supply in the residential housing market throughout many parts of the UK, which in turn will continue to add an upward pressure on house prices. As stock increase in the next couple of months, sales are likely to follow suit.

NAEA President, Charles Smailes, comments: “It appears that we are finally hitting a period of levelling in the residential housing market. However this is unlikely to last. There is a great deal of uncertainty in the market at the moment, the increase in interest rates and the implementation of home information pack (HIPs) are set to have a significant impact.”

With the current calm in the property market, homeowners could look at possibly making home improvements. Through simple home improvements or even large projects, they could in turn benefit those homeowners who are looking to take advantage of the housing market. A secured loan is one of the many options available for home owners. A home improvement loan could fund many home projects. Loft conversions are currently seeing a rise in popularity, and with a secured loan houses can be extended taking full advantage of all aspects of the house. Home improvement loans can be made payable over a term to suit the borrower from 5 to 25 years.

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Wednesday, May 16, 2007

Opportunistic thieves take advantage of summer weather.

Homeowners have recently been urged by Nationwide Building Society to ensure that they are protected against thieves this Bank Holiday weekend by making sure that they have adequate cover for loss of garden contents under their home insurance plan.

As many home insurance plans do not provide garden cover as standard in their policies, with the warmer weather and longer evenings many people will be spending more time in their gardens increasing the risk of things being stolen. However, householders can ensure that they will not be lead up the garden path when it comes to making a claim by taking action now.

The top 10 claims for items damaged or stolen from gardens include furniture, bikes, ornaments, statues and toys. Garden machinery, clothes from the washing line, flowerpots, water features and trampolines are also commonly damaged or stolen.

Nationwide’s insurance director, Robin Bailey, said: “At this time of year people spend a lot of money buying expensive garden furniture, equipment and potted plants, but they often fail to think about the inherent risk that comes with leaving these out in the open. As we move further into Spring we begin to see an increase in the number of home insurance claims we receive for items being stolen from gardens or vandalised, with garden furniture being the most popular item claimed for. Unfortunately we cannot secure our gardens as easily as our homes but, by finding a provider which offers garden cover as standard, people can help protect themselves should they ever need to make a claim.”

Homeowners who are making home improvements could at the same time consider adding a securely built and locked garden room or shed to house costly garden furniture and precious ornaments. Home improvements and increasing garden security could be funded with a homeowner loan. Borrowers can repay their homeowner loans over a term to suit them, from 5 to 25 years. Home improvements that may be financed with a homeowner loan include complete internal makeovers, extending and fitting new kitchens or bathrooms. Homeowner loans are one of many options to pay for home improvements.

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Tuesday, May 15, 2007

Woolwich cost of moving survey 2007

The recent Cost of Moving Survey conducted by Woolwich has shown that many house sellers are saving on the cost of moving despite an increase in property prices by 11.1% over the last year. As a result of Home Information Packs (HIPs) becoming compulsory from June this year, savings are likely to be cancelled out.

With rising property prices, movers are keen to save money where they can. According to Andy Gray, head of mortgages for the Woolwich, sellers are using their strong position to drive down the costs of moving: “The market definitely favors sellers at the moment and the lack of property on the market is helping them negotiate deals with estate agents, and to a lesser degree solicitors, as agents are desperately trying to find enough good quality property to satisfy the increasing demand. As a result the cost of moving for sellers has decreased by approximately 10 per cent since last year - it now costs on average £4,666 to sell a home compared to £5,181 last year. We also expect the pressure to continue on fees as long as it stays a sellers market. Especially as the introduction of Home Information Packs in the summer will only add to the cost of selling a house.”

A HIP containing an energy assessment, searches, legal documents and optional home condition reports will be made compulsory from 1 June 2007. Industry estimates have suggested costs of around £400. According to the research, while 85 per cent of estate agents agree that this will increase the cost of moving, a very high 77 per cent don’t believe that it will improve the house buying process at all.

Research has shown that HIPs will shift some of the costs of moving from buyers to sellers. However the impact for buyers is likely to go unnoticed this could be as a result of stamp duty contributing on average £9,750 to buyers’ costs. Buyers now pay out around £10,745 compared to £10,832 in 2006. The slight reduction is due to reduced solicitors’ fees which are currently down on average by 11%. Land Charge costs will come under HIPs from 1 June and this will further reduce the cost for buyers as the cost is transferred to sellers under the HIPs process. The reduced cost to buyers to an average of £10,545.

With properties selling quicker than ever, almost one in five are selling in less than a month compared to four per cent last year many homeowners could consider taking advantage of a home improvement loan. A secured loan, one of the many options available, could allow for homeowners to spruce up their houses rather than move. Small improvements like repainting living and dining rooms could be paid for using a personal loan and could add value to a property. Adding an extra bedroom or modernizing an existing bathroom might also be on the cards, improving your current property. A secured loan can be paid over a term to suit the borrower from 5 to 25 years.

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Monday, May 14, 2007

Bank of England: Lending to individuals: March 2007

The Bank of England recently revealed that the increase in total net lending to individuals in March, £10.8billion, was lower than the increase in February but in line with the average from 6 months ago.

Also the twelve-month growth rate fell 0.1 percentage points to 10.5%. At 10.4%, the three-month annualized growth rate fell by 0.2 percentage points.

The increase in net lending secured on dwellings (£9.9 billion) was less than the increase in February but above the previous six-month average. From February the twelve-month growth rate was unchanged at 11.5%. A decrease of 0.2% was present in the three-month annualized growth rate which fell to 11.5%. In March, the Bank of England noted that the number of loans approved for house purchase was 111,000, those for remortgaging 100,000, and those for other purposes were 72,000. These were all lower than the figures quoted in March.

Although March saw an increase in net consumer credit, it was lower than the increase in February. However the rise in net credit card lending of £0.2 billion was higher than the amount in February. Net other loans and advances increased by £0.7 billion which was lower than the increase of £0.9 billion in February. The annual growth rate of consumer credit was unchanged from February at 5.9%, and the three-month annualized growth rate fell by 0.3 percentage points to 5.1%.

Homeowners looking for funds to carry out home improvements or consolidate debt with a remortgage, could consider a secured loan as an alternative. Repayable over a term to suit the borrower, a secured loan can usually be repaid over a term of 5 to 25 years. Secured loans may be used to cover costs of both large and smaller scale home improvement projects. Larger projects include extending to add extra rooms while refitting kitchens and bathrooms and redecorating may be considered as smaller scale projects; both of which may be financed with a secured loan. When using a secured loan to consolidate existing debts, it is however important to remember that repaying borrowing over a longer term will increase overall interest charges.

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Friday, May 11, 2007

Store card market set to change in May

As a result of the Competition Commission’s enquiry in March 2006, the store card market is set to change. From 1st May 2007 all providers will have to print warnings on statements if they charge consumers annual percentage rates (APRs) of 25% or above.

An honesty box which will summarize interest payments and penalty charges, and carry warnings about the dangers of making only the minimum monthly repayment summary will have to also be included.

Nick White, Director of Financial Services at independent price comparison and switching service uSwitch.com, comments:

“Whilst the new rules for store cards that will come into effect tomorrow are a small step in the right direction in terms of improving transparency, it appears the Competition Commission is closing the stable door after the horse has bolted. We believe that consumers need to be made aware of high APR’s on store cards (up to 30.9% APR) at the time of signing up to these deals so they know exactly what they’re getting. There is also a big issue around the fact that retail staff selling these cards are not trained in financial services and, in many cases, do not fully understand the interest payments or the basic terms and conditions of the credit cards they are selling. This training should be mandatory yet it is still not happening.

Homeowners who are finding that they are paying multiple credit and store card bills where a large part of the monthly repayment is interest could benefit from taking out a debt consolidation loan. One of the many options available, a debt consolidation loan could put all debt into one place, making it easier to keep track of the amount and exact date payment every month. Made payable over a term to suit the borrower from 5 to 25 years, a debt consolidation loan could help homeowners plan their finances as they’ll know what needs to be paid and when. It is however important to remember that with a debt consolidation loan, repaying borrowing over a longer term will increase overall interest charges.

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Thursday, May 10, 2007

Wales is hot as buy-to-let stays strong says Paragon

According to Paragon Mortgages’ latest Buy-to-Let Index, Wales is considered the latest ‘hot spot’ for residential property investors. Rent has gone up by 33% over the past quarter and property prices by 18%. A positive trend can also be found in the rental yields with Wales as the only region of the country exceeding 7%. As well as this, Wales stands this month in second position in terms of total return, generating an average of 25.6% compared to the average of England and Wales as a whole of 12.9%. As a result the area has outperformed in terms of rents, yields and total returns.

John Heron, managing director of Paragon Mortgages, says: “Rents are rising strongly in Wales, but so are property values, although to a slightly lesser extent. On the back of that, investors have been enjoying steady rises in rental yields over the past few months, up from 6.3% to 7.1% in one quarter. With a positive economic backdrop underpinning growth in tenant demand, it is not surprising that Wales is the country’s top performer in terms of yield, and the only region to generate average rental yields in excess of 7%.”

The average annual rent in March achieved by landlords in Wales was £11,251; this is up 32.7% on the figure from December of £8,480, on a typical property worth £158,239, up 17.5% on December’s figure (£134,727). An investor who bought a property one year ago will have generated an average total return of 25.6% or £34,079 on a property worth £133,297 in March 2006.

John Heron concludes: “The astute landlord who invested in buy-to-let in Wales this time last year will have achieved almost twice the national average total return. While the national picture remains strong, residential property investment looks particularly attractive in Wales. Trends in the local economy are very positive, creating new jobs and causing an influx of workers into the area, which in turn fuels tenant demand”.

For those not living in a buy to let property, but their own home, and who want to carry out some home improvements, could do so with a secured home improvement loan. One of the many options available to improve and maintain homes, a home improvement loan can cover the cost of redecorating as well as bigger projects like extending or redoing kitchens and bathrooms. Simple home improvements like decorating or simply buying new furniture can add character to a property making it more homely. Made payable over a term to suit the borrower from 5 to 25 years, a secured loan can assist homeowners through large or small projects. Extending properties through the building of conservatories or room extensions could add value to pro