Archive for the ‘Secured loans’ Category
As landlords sell, first time buyers benefit
Tuesday, May 22nd, 2007According 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, one of many finance options 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. Secured home improvement loans may also be used for more adventurous projects such as extending, loft conversions or adding a conservatory.
Service to help used car buyers
Monday, May 21st, 2007Last 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 secured loan. A secured 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 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 secured loan. With the summer coming, a new convertible sports car, could also be financed with a secured loan. Secured loans are just one of many options available to those looking to buy a new car.
Home buyers fail to protect from property nightmares
Monday, May 7th, 2007Research conducted by AA Legal Services has found that many homebuyers are failing to protect themselves from property nightmares. They have found that less than one in four homeowners have failed to take the necessary simple steps to properly check their dream house before they buy it.
While Brits owe more than £340billion in mortgage repayments and with the average UK home costing £185,000, there are still many homebuyers who are spending their last pennies on covering the cost of mortgage payments rather than checking the quality of the home they are about to buy.
Checking the quality of homes is not a main concern for homeowners the AA Legal Services found. From the 1,200 British homeowners questioned, just 28% had commissioned a structural survey of their property (beyond the mortgage valuation) or checked for flood risk. Fewer still at 14% had sought an independent conveyancing service. Also, even though complaints made about noisy neighbours have had a fivefold increase in the last 27 years, just 15% of homebuyers have met their prospective neighbours before buying.
Further findings show that low income buyers planning to invest in homes worth under £100,000 were the most likely to be putting themselves at risk. Only 6% sought any kind of independent conveyancing and only 17% looked for an independent survey.
Commenting on the research, James Molloy at AA Legal Services, points out that moving home is one of the most important life events, and the biggest one-off financial investment most people ever make. “I’m very worried that so few people take steps to protect their investment and ensure that their interests are represented.”
On the other hand, the research has found that younger home buyers, aged between 18 and 24, were more likely to consider the costs of insuring their new home, 40% compared to 21% nationally, and looking into council tax rates, 45% compared to 29% nationally.
Homeowners who have just moved home and need some extra cash to help, could consider a secured loan. A secured loan is one of the many options available to homeowners. A personal secured loan could help provide homeowners with necessary funds to pay for essential work like refitting kitchens or bathrooms. Once settled in your new home a secured loan could help with simple redecorations, a simple lick of paint on a living room can make all the difference and help you feel more at home. Lastly, a secured loan could be used to add a conservatory if desired.
Homeowners see a 12% rise in the cost of running a home
Tuesday, May 1st, 2007According to Sainsbury’s Bank, the annual cost of running a home is around £11,035. This is a significant 12% higher than the cost calculated in the year 2004/05, as much as £3.28 a day or £1,199 a year.
Robert O’May, home insurance manager at Sainsbury’s Bank, said: “It’s becoming more expensive to run a home, which makes it all the more important for homeowners to shop around to make sure they are getting the best deals available. This is not only for their mortgages and utility supplies but also their home insurance.”
Sainsbury’s Bank suggests the importance of shopping around for the best deals especially as homeowners see an increase in the cost of gas and electricity bills. These have seen the greatest increase since 2004/05 of around 27% and 19% respectively. The bulk of a homes’ cost is spent on mortgage repayments, at 60% annually. Following this is the money spent on alterations and improvements, which makes up for over 12%.
With such an increase in the amount of money needed to run a home, some homeowners who are finding that they are in need of some finance to make vital home improvements could benefit from a secured loan. Not only can simple home improvements like painting and decorating restore a house’s appearance they could in the long run increase the property’s price if it were to go on sale. Using a secured loan to Improve a property’s garden with new decking or simply a lick of paint on a garden fence could make a difference this summer especially with a forecast for plenty of warm days, perfect for outdoor barbeques and garden parties. Secured loans are one of many options to pay for home improvements.
