Archive for the ‘Interest Rates’ Category
Home is where the heart is
Monday, September 7th, 2009According to research conducted for LV=, 28 percent of British adults feel that the prospect of never becoming a homeowner is ‘too terrible to consider’. Furthermore, 39 percent admitted that they would feel ‘miserable’ at the possibility of never owning a property.
Of those who do own a home, it was found that 51 percent would commence a second job to help pay the mortgage. In addition, 43 percent would take out all or some of their life savings to meet mortgage repayments, and 29 percent would be prepared to sell the family silver for this purpose. Nevertheless, 9 percent have insurance to cover their mortgage repayments and other regular outgoings over the long term in case they suddenly lose their income.
Further measures that homeowners would be prepared to take in a bid to retain their property include taking in a lodger at 19 percent, and seeking financial assistance from friends at 18 percent.
Additionally, 12 percent would move elsewhere in order to rent their home out. LV= head of protection, Chris McFarlane, commented: “The financial turmoil of the last year has done nothing to dampen our national obsession with home ownership. It’s fascinating to note just how far people would go to avoid having to give up the keys to their castle.”
It would appear that the challenging economic conditions have failed to put a dampener on the home-owning desires of the nation’s under 35 year olds. In fact, LV= uncovered that 74 percent can not picture themselves without their own property one day. In relation to this group of young homeowners, the research revealed that they are more financially cautious than older generations.
Amongst the former, 43 percent have some form of mortgage protection compared to an average of 37 percent across all age groups. However, 65 percent have mortgage payment protection insurance (MPPI), which often only offers cover for a limited period of time.
Chris McFarlane continued: “It is encouraging to note that younger homeowners are more aware of the need to protect their mortgage payments. But they need to be very clear about what their cover includes and whether the replacement to their regular income would dry up after a short time, as MPPI often does. Protecting a breadwinner’s loss of income over the long term now, rather than reacting only when the worst happens, would make just a modest impact on most people’s finances, yet it would provide vital assistance if needed.”
Those who have recently fulfilled their dream of owning their own home, but do not have the funds required to make their property quite what they desire, could consider taking out a secured loan. A secured loan for home improvements could be the ideal solution for homeowners that are keen to put a personal stamp on their new surroundings. One of many finance options available, a secured loan could allow the borrower to embark upon a range of projects from re-decoration to the addition of an extension or conservatory for extra living space.
Unusual claims of 2008
Tuesday, January 27th, 2009It would seem that Claims Advisers at Lloyds TSB Insurance received some rather peculiar claims during the course of last year. An annual summary of their most unusual claims revealed five particularly extraordinary circumstances.
Firstly, there was the customer that shot his television. Not content with merely shouting at the television it would appear that some have gone to greater lengths. Lloyds TSB Insurance stated that they were blown away when they received the call from a gentleman who revealed that he had “shot the TV”. Apparently the customer in question was refurbishing an old gun for his friend and did not realise that it was loaded.
Secondly, there was the customer who found himself minus a pair of spectacles thanks to a magpie flying into his room and removing them from the property.
Thirdly, there was the customer that called in to report a broken bed and bed post, which resulted in one rather embarrassed Claims Adviser.
Fourthly, there was the pool of so-called ‘standing water’ in one customer’s back garden. Upon inspection by a Claims Handler, it was established that this wasn’t the result of a leaking drain or pipe but, in actual fact, a favourite spot for the customer’s pet poodle to spend a penny.
As well as the claims described above, last year Lloyds TSB Insurance also saw several incidents involving mobile phones, MP3 Players and laptops ending up in toilets, bath tubs and dishwashers. In a particularly memorable case, one item even had a wash on the full spin cycle.
Phil Loney, Lloyds TSB Insurance Managing Director, commented: “I never cease to be intrigued by the variety of claims we receive day in, day out. Our 2008 quirky claims round-up highlights that it’s truly impossible to predict what’s around the corner and whilst it’s important to take sensible security, maintenance and safety steps, having a good insurance policy is vital to ensure long term peace of mind.
“We take pride in making our insurance policies clear and simple to understand so that when the unpredictable does happen you know what you’re covered for.”
Homeowners that find themselves facing the unexpected, and as a result requiring additional funds, could bear in mind the option of a secured loan. The necessity to extend your home to house a surprise addition to the family is one example of where a secured loan may be used to finance the unexpected. However, it must be remembered with any borrowing that repaying over a longer term may increase overall interest charges.
3.3 million UK workers cycle to make savings
Friday, January 16th, 2009As the credit crunch continues to bite, it would seem that numerous people are turning to their bicycles to commute to work as opposed to cars or public transport. According to research conducted by Sainsbury’s Home Insurance, 12 percent of the British workforce (3.3 million people) have recently adopted this method of getting around in an effort to make savings.
The research reveals that opting for a bicycle over cars or public transport is saving people in the region of £33.70 a week, which equates to £111.2 million collectively. Of course, in addition to monetary benefits, cycling also offers health and environmental benefits to boot.
Findings also indicate that this newly founded cycling community is comprised of more men than women. In fact, 15 percent of the male working population have decided to commence cycling to work, compared to 8 percent of female workers.
These figures show that the current economic climate is causing people to re-think their lifestyles and make the necessary adjustments to save money. However, Sainsbury’s Home Insurance warns cyclists to keep their bicycles secure and adequately insured so as not to lose out to thieves. Statistics reveal that over 1,200 bicycles are stolen every day in the UK.
Neil Laird, Sainsbury’s Home Insurance Manager, commented: “Using a bicycle to travel around can be a very effective way of saving money. However, with thousands of bicycles being stolen in the UK each week, it could soon turn out to be a white elephant, costing you far more than you expect if you haven’t secured and insured it properly. It’s important to make sure that your home insurance policy covers your bicycle.”
Homeowners juggling multiple repayments on various credit card and store cards at the moment could consider refinancing existing debts with a secured loan. Potentially this could lower initial monthly outgoings, and free up a little more of borrowers current income. Secured loans are one of many options to consolidate debts, however consolidating your debt may increase the amount you pay back overall and extend the repayment period of your debts.
Interest rate changes lead homebuyers to be more cautious
Monday, July 2nd, 2007As the possibility of a fifth interest rate rise in under a year looms large, home buyers are becoming more prudent in the steps to reduce the risk of mortgaging their homes to their financial limits. Research from Yorkshire Bank’s Mortgages team suggests that since the Bank of England has been taking measures to lower house prices and curb inflation homebuyers are becoming more cautious. Almost a quarter of buyers have admitted that they are looking to avoid taking out a maximum mortgage.
By cutting household expenditure back, homebuyers are hoping that they will find it easier affording their home. Many sacrificed holidays, social life and nice cars so that they could eventually own their homes. First time buyers are also cutting back on their lifestyle with over a third adapting their lifestyle to ensure that the dream of buying a first home becomes a reality.
Yorkshire Bank’s research has found that first time buyers intend to demonstrate greater caution with almost a third intending to avoid stretching their finances from the beginning to avoid a further rate rise tipping them over the edge of affordability. There was a great anticipation for a further rate rise over the next year with three quarters of those surveyed expecting it.
Gary Lumby, Yorkshire Bank’s Head of Retail, said: “What our survey shows is prudence, not panic – all the signs are that the market will still remain strong. But with rises in the Bank of England’s base rate, and with many economists predicting a further rise if not next month, then in the near future, it is inevitable that homebuyers will become more a little more cautious with their borrowing.
“The recent rises have started to make buyers take a realistic view of what they can and can’t afford and to take measures to protect themselves against unforeseen changes in their personal circumstances. What we’re seeing is buyers being shrewder than when the housing market was at its most buoyant, both in the price they’re prepared to pay for a home and how they choose to finance it.”
House prices were also expected to continue rising with seven out of ten people citing this. Despite this only one in six would be prepared to offer the full asking price for a property immediately.
Homeowners with multiple credit card bills, looking to remortgage their property to pay these off as a result of the increase in the Bank of England’s base rate, could consider a secured loan as an alternative. One of many finance options to consolidate debts, a secured loan could allow homeowners to consolidate existing debt into one monthly affordable payment. Multiple store and credit card bills could be consolidated leaving homeowners with peace of mind to plan ahead safe in the knowledge that their finances are in hand. Homeowners should remember that repaying over a longer term will increase overall interest charges.
