Archive for the ‘Secured loans’ Category
Does rain stop play?
Tuesday, September 15th, 2009As the August Bank Holiday looms, the weather continues to be debated. As a consequence, The Co-operative Bank Credit Cards has conducted a study of two consecutive weekends, across which the weather differed significantly. In fact, a national average temperature of 24 degrees Celsius was recorded on the final weekend of May, whereas a national average temperature of 10 degrees Celsius was recorded on the first weekend of June. The former was hot and sunny, compared to the latter which was cooler and wetter.
Findings revealed that transactions at country clubs and private golf courses rose by virtually 30 percent during the hot weekend in May. Second to this was a 27 percent uplift in spending at DIY stores, followed by an 18 percent increase in expenditure at garden centres. However, on the colder weekend in June there were a greater number of transactions at travel agencies and tour operators as people sought the sunshine. Departmental stores also experienced an increased level of transactions on the weekend in June at 21 percent, while a 13 percent increase was noted at grocery stores.
The Co-operative Bank Credit Cards points out that their study highlights a correlation between the weather and spending habits. For this reason, some businesses will be hoping for sunshine as others keep their fingers crossed for the opposite.
Homeowners that are planning to kick start a DIY project or two this Bank Holiday weekend may wish to consider taking out a secured loan to facilitate further work if desired. One of many finance options available, a secured loan for home improvements could help create the living space which homeowners really desire. This may involve an attic conversion, extension, conservatory, landscaped garden, or a new kitchen. The possibilities are extensive, and may even add value to the property. Secured loans for home improvements could also be used to cover the cost of a complete redecoration throughout or to update heating systems and windows, ready for the winter ahead.
4.5 million UK adults set to buy second-hand cars
Friday, July 3rd, 2009
Research by Sainsbury’s Finance has revealed that 10 percent of UK adults are intending to purchase a second-hand car in the 6 months up to the end of August 2009. This equates to 4.5 million Brits, and with each of these individuals planning to spend an average sum of £4,487, the total outlay stands at £20.06 billion.
This figure has been recorded as representing a 21 percent decrease on the previous six month period of £25.5 billion and a 12 percent decrease in the number of prospective second-hand car buyers. Therefore the second-hand car market would appear to be seeing less buyers and with less money to hand.
Sainsbury’s Finance is advising people to ensure that they look into their car’s value prior to putting it up for sale. It is important to gain an appreciation of what the car is worth before engaging in negotiations, especially at a time when people are tending to be more pennywise.
Head of Sainsbury’s Loans, Steven Baillie, commented: “Sellers need to make sure they know the market value of a vehicle to ensure they get a good deal for their existing car. Our findings show the amount people anticipate spending on second-hand cars is significantly less compared with six months ago, which may be a knock-on effect of people’s growing financial uncertainty.
“Sellers should have an accurate price in mind based on the car’s market value which includes taking into account the mileage, wear and tear and any extras or special edition components. While too high a price will put potential buyers off a low price may also make them wary.
“It’s important buyers remember to haggle when negotiating any car purchase, as haggling can save the buyer hundreds or evens thousands of pounds. Despite this our findings show that nearly half of people who are intending to buy a second-hand car in the next six months say they do not plan to haggle or they may only haggle slightly. Homework is key to confidence here; if you know what you should be paying you’ll be able to haggle more effectively.”
In terms of a regional divide, it would seem that the greatest number of potential second-hand car buyers reside in Wales at 16 percent, with the West Midlands in second place at 14 percent. In contrast, East Anglia is home to the least number of people planning to buy a second-hand car at 4 percent.
The research also revealed that approximately 15 percent of the second-hand cars bought during the coming six months will be funded by loans. As a result, Sainsbury’s Finance has recommended that car buyers search the market for good rates and finance options.
Homeowners that are currently investigating finance options in preparation for purchasing a second-hand, or indeed new, car could consider taking out a secured loan. A secured loan, one of many options to cover the cost of a car, could facilitate the purchase of that dream car, whilst also offering the possibility of consolidating any existing credit cards and / or personal loans. With a secured loan, juggling multiple debts each month could be a thing of the past – leaving the borrower with just one, potentially lower, monthly repayment. However, when using a secured loan to consolidate debt, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
44 percent rise in unsecured loan rates
Thursday, June 11th, 2009According to Moneyfacts.co.uk, unsecured loan rates have increased by up to 44 percent during the course of the past 2 years. Those requiring a loan to the value of £5,000 have seen the most significant rise from 8.6 percent in May 2007 to 12.4 percent today. The next most notable increase in the same period was found to be on loans of £25,000, for which the average rate has now reached 9.2 percent from 7.3 percent.
Analyst at Moneyfacts.co.uk, Michelle Slade, commented: “Despite bank base rate being at an all time low, borrowers looking for a personal loan have seen no benefit. Those looking for just £5,000 have seen a staggering jump in the cost of a loan. In May 2007 a customer would have paid £664 interest on a £5,000 loan over a three year term, whereas today that has jumped to £957.
“With many providers showing just typical rates, the actual increase a customer has to pay today compared to a few years ago could be much higher. Tighter lending criteria is likely to mean only those with a perfect credit history will be getting the best rates. Rising unemployment has meant the risk of customers defaulting on unsecured loans has increased and this increased risk is being seen in higher rates.
“If a customer is struggling to meet repayments, unsecured lending is likely to be the first on which customers default, rather than secured lending such as their mortgage. In the last year, 19 personal loan products have been withdrawn from the market. If a personal loan is required, borrowers have much less options.
Homeowners that are presently shopping around for loans, and who are looking for an alternative to an unsecured loan, may wish to consider taking out a secured loan instead. This finance option could pave the way to those much-desired home improvements, or it could be used to tie up existing debts. With regard to the latter, a debt consolidation loan could leave the borrower with just one monthly repayment as opposed to juggling several. In addition, the new repayment figure could be lower than current outgoings. When taking out a debt consolidation loan, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
House prices continue to fall amid recession
Thursday, April 23rd, 2009According to Nationwide, the housing market is continuing to experience house price falls. In February the reduction stood at 1.8 percent compared to the month before, which resulted in an average property price of £147,746 compared to £150,501 in January. Falling rates are reported to reduce existing variable rate borrowers monthly repayments by a third and for would be first time buyers, a major improvement in affordability is apparent.
Nationwide’s Chief Economist, Fionnuala Earley, commented: “The price of a typical house fell by 1.8% in February, bringing the annual rate of change to -17.6% and the price of a typical house down to £147,746, from £179,358 this time last year. Sharp cuts in interest rates have helped affordability, but have not yet affected housing market confidence sufficiently to boost the levels of new transaction activity or slow the pace of house price falls. Early signs of increased interest in housing, as reported by the pick up in new buyer enquiries, have yet to filter into sales, but do suggest that falling prices and interest rates are raising curiosity now, which could flow through quickly once confidence returns.
“The February Inflation Report also implies that the MPC has not finished cutting interest rates yet. First, the Bank’s economic forecast factoring in a 25bp cut, left inflation significantly below its target two years ahead and GDP contracting sharply. Second, Mervyn King clearly stated that “further easing may well be required” when asked how much further rates could fall – a sentiment subsequently echoed by other MPC members. Further cuts in rates will be welcome in the housing market, but the economic conditions that require them will mean that there is unlikely to be a swift turnaround in the housing market in 2009.
Homeowners who have decided to sit tight in their current property rather than move, may wish to consider taking out a secured loan to turn their existing home into their dream home. A secured loan for home improvements could be used to finance a new kitchen or bathroom, or could even be used to create extra space by means of an extension or conservatory. Such projects could even add value to a property in readiness for a potential decision to sell up in the future. Secured loans are one of many options to fund home improvements.
